http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html Becoming an Entrepreneur, by Matt Mireles Mon, 10 Oct 2011 04:32:00 +0000 hourly 1 http://wordpress.org/?v=3.3 http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-525 Is NY Angels a Pay-to-Play Scheme? « The Metamorphosis Mon, 12 Jul 2010 17:35:29 +0000 http://www.metamorphblog.com/?p=39#comment-525 [...] Is NY Angels a Pay-to-Play Scheme? UPDATE: David S. Rose, Chairman of the NY Angels, responded in the comments below and I broke it out into its own post. [...] [...] Is NY Angels a Pay-to-Play Scheme? UPDATE: David S. Rose, Chairman of the NY Angels, responded in the comments below and I broke it out into its own post. [...]

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-305 jhlewisjr Wed, 03 Mar 2010 23:34:23 +0000 http://www.metamorphblog.com/?p=39#comment-305 David, Using the simple math of users * fee might not have been fair. I can see that you are trying to create a portal/pipeline for angel and seed investors. I just wonder about the business model as it stands. The prioce for an angel group is far below the cost to the entrepreneur that uses the monthly open deal solution. I know it is difficult to charge angel groups - I have tried to make a go of creating software for VC groups in the past. The smaller firms compare any offering to the cost of buying Excel. I will keep an eye on the developments. I can clearly see how you could expand the software and make it a good idea for a startup. Regards, JHL David, Using the simple math of users * fee might not have been fair. I can see that you are trying to create a portal/pipeline for angel and seed investors.
I just wonder about the business model as it stands. The prioce for an angel group is far below the cost to the entrepreneur that uses the monthly open deal solution.
I know it is difficult to charge angel groups – I have tried to make a go of creating software for VC groups in the past. The smaller firms compare any offering to the cost of buying Excel.
I will keep an eye on the developments. I can clearly see how you could expand the software and make it a good idea for a startup.
Regards, JHL

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-961 jhlewisjr Wed, 03 Mar 2010 23:34:00 +0000 http://www.metamorphblog.com/?p=39#comment-961 David, Using the simple math of users * fee might not have been fair. I can see that you are trying to create a portal/pipeline for angel and seed investors. I just wonder about the business model as it stands. The prioce for an angel group is far below the cost to the entrepreneur that uses the monthly open deal solution. I know it is difficult to charge angel groups - I have tried to make a go of creating software for VC groups in the past. The smaller firms compare any offering to the cost of buying Excel. I will keep an eye on the developments. I can clearly see how you could expand the software and make it a good idea for a startup. Regards, JHL David, Using the simple math of users * fee might not have been fair. I can see that you are trying to create a portal/pipeline for angel and seed investors.
I just wonder about the business model as it stands. The prioce for an angel group is far below the cost to the entrepreneur that uses the monthly open deal solution.
I know it is difficult to charge angel groups – I have tried to make a go of creating software for VC groups in the past. The smaller firms compare any offering to the cost of buying Excel.
I will keep an eye on the developments. I can clearly see how you could expand the software and make it a good idea for a startup.
Regards, JHL

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-304 David S. Rose Sun, 28 Feb 2010 21:33:07 +0000 http://www.metamorphblog.com/?p=39#comment-304 I only wish that was our business model [grin]. First, those application fees go to the group to which a company is applying for funding, not to Angelsoft (we simply handle the credit card charges for them for a processing fee), and second, not all groups and funds charge fees (as has been amply noted here and elsewhere :-). Angelsoft's business model is probably closest to LinkedIn's: spend an enormous amount of time and money up front to build a useful network and create value, and then leverage that underlying platform as a base to offer optional, value-added services to the various constituents who find it useful (as LinkedIn does with InMail, job postings, contacts, etc.) With tens of thousands of accredited investors, and tens of thousands of serious entrepreneurs, and over 600 angel groups and venture funds in 45 countries, we've so far managed to achieve something unprecedented in the early stage financing arena. But it's been a long, hard hill to climb for half a decade (which is something I'm sure all of my fellow entrepreneurs can empathize with.) The first of our new offerings will be announced this summer, and should be (at least we believe) really exciting for entrepreneurs who are in the process of fundraising. We've been running an exhaustive series of focus groups and surveys with hundreds of startups, and are working on stuff that we hope will be so cool, so useful and so cost effective, that every one of the 600,000 companies that get started every year in the US will coming running to sign up and give us some revenue. [Turning on his Maxwell Smart voice...] Would you believe 60,000? How about, umm, 6,000? 600? Seriously, though, Angelsoft is a very, very long-term play, based on the assumption that both the number of entrepreneurs and the number of angel investors will continue to increase, and that by providing a world-class set of tools and services to everyone in the ecosystem, we can help them create real value, and be compensated for our small part in that value creation. Stay tuned! (And if you're interested in getting involved with our beta program to get an early peek at this stuff, feel free to drop a note to jason at angelsoft dot net...) -David S. Rose CEO, Angelsoft I only wish that was our business model [grin]. First, those application fees go to the group to which a company is applying for funding, not to Angelsoft (we simply handle the credit card charges for them for a processing fee), and second, not all groups and funds charge fees (as has been amply noted here and elsewhere .
Angelsoft’s business model is probably closest to LinkedIn’s: spend an enormous amount of time and money up front to build a useful network and create value, and then leverage that underlying platform as a base to offer optional, value-added services to the various constituents who find it useful (as LinkedIn does with InMail, job postings, contacts, etc.)
With tens of thousands of accredited investors, and tens of thousands of serious entrepreneurs, and over 600 angel groups and venture funds in 45 countries, we’ve so far managed to achieve something unprecedented in the early stage financing arena. But it’s been a long, hard hill to climb for half a decade (which is something I’m sure all of my fellow entrepreneurs can empathize with.)
The first of our new offerings will be announced this summer, and should be (at least we believe) really exciting for entrepreneurs who are in the process of fundraising. We’ve been running an exhaustive series of focus groups and surveys with hundreds of startups, and are working on stuff that we hope will be so cool, so useful and so cost effective, that every one of the 600,000 companies that get started every year in the US will coming running to sign up and give us some revenue. [Turning on his Maxwell Smart voice...] Would you believe 60,000? How about, umm, 6,000? 600?
Seriously, though, Angelsoft is a very, very long-term play, based on the assumption that both the number of entrepreneurs and the number of angel investors will continue to increase, and that by providing a world-class set of tools and services to everyone in the ecosystem, we can help them create real value, and be compensated for our small part in that value creation. Stay tuned! (And if you’re interested in getting involved with our beta program to get an early peek at this stuff, feel free to drop a note to jason at angelsoft dot net…)
-David S. Rose
CEO, Angelsoft

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-960 David S. Rose Sun, 28 Feb 2010 21:33:00 +0000 http://www.metamorphblog.com/?p=39#comment-960 I only wish that was our business model [grin]. First, those application fees go to the group to which a company is applying for funding, not to Angelsoft (we simply handle the credit card charges for them for a processing fee), and second, not all groups and funds charge fees (as has been amply noted here and elsewhere :-). Angelsoft's business model is probably closest to LinkedIn's: spend an enormous amount of time and money up front to build a useful network and create value, and then leverage that underlying platform as a base to offer optional, value-added services to the various constituents who find it useful (as LinkedIn does with InMail, job postings, contacts, etc.) With tens of thousands of accredited investors, and tens of thousands of serious entrepreneurs, and over 600 angel groups and venture funds in 45 countries, we've so far managed to achieve something unprecedented in the early stage financing arena. But it's been a long, hard hill to climb for half a decade (which is something I'm sure all of my fellow entrepreneurs can empathize with.) The first of our new offerings will be announced this summer, and should be (at least we believe) really exciting for entrepreneurs who are in the process of fundraising. We've been running an exhaustive series of focus groups and surveys with hundreds of startups, and are working on stuff that we hope will be so cool, so useful and so cost effective, that every one of the 600,000 companies that get started every year in the US will coming running to sign up and give us some revenue. [Turning on his Maxwell Smart voice...] Would you believe 60,000? How about, umm, 6,000? 600? Seriously, though, Angelsoft is a very, very long-term play, based on the assumption that both the number of entrepreneurs and the number of angel investors will continue to increase, and that by providing a world-class set of tools and services to everyone in the ecosystem, we can help them create real value, and be compensated for our small part in that value creation. Stay tuned! (And if you're interested in getting involved with our beta program to get an early peek at this stuff, feel free to drop a note to jason at angelsoft dot net...) -David S. Rose CEO, Angelsoft I only wish that was our business model [grin]. First, those application fees go to the group to which a company is applying for funding, not to Angelsoft (we simply handle the credit card charges for them for a processing fee), and second, not all groups and funds charge fees (as has been amply noted here and elsewhere .
Angelsoft’s business model is probably closest to LinkedIn’s: spend an enormous amount of time and money up front to build a useful network and create value, and then leverage that underlying platform as a base to offer optional, value-added services to the various constituents who find it useful (as LinkedIn does with InMail, job postings, contacts, etc.)
With tens of thousands of accredited investors, and tens of thousands of serious entrepreneurs, and over 600 angel groups and venture funds in 45 countries, we’ve so far managed to achieve something unprecedented in the early stage financing arena. But it’s been a long, hard hill to climb for half a decade (which is something I’m sure all of my fellow entrepreneurs can empathize with.)
The first of our new offerings will be announced this summer, and should be (at least we believe) really exciting for entrepreneurs who are in the process of fundraising. We’ve been running an exhaustive series of focus groups and surveys with hundreds of startups, and are working on stuff that we hope will be so cool, so useful and so cost effective, that every one of the 600,000 companies that get started every year in the US will coming running to sign up and give us some revenue. [Turning on his Maxwell Smart voice...] Would you believe 60,000? How about, umm, 6,000? 600?
Seriously, though, Angelsoft is a very, very long-term play, based on the assumption that both the number of entrepreneurs and the number of angel investors will continue to increase, and that by providing a world-class set of tools and services to everyone in the ecosystem, we can help them create real value, and be compensated for our small part in that value creation. Stay tuned! (And if you’re interested in getting involved with our beta program to get an early peek at this stuff, feel free to drop a note to jason at angelsoft dot net…)
-David S. Rose
CEO, Angelsoft

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-303 jhlewisjr Sun, 28 Feb 2010 15:16:50 +0000 http://www.metamorphblog.com/?p=39#comment-303 I always wondered what business model Angelsoft was using - 40,000 annual applications at $150 = $6,000,000 Not bad - that in of itself makes a successful company. I always wondered what business model Angelsoft was using – 40,000 annual applications at $150 = $6,000,000 Not bad – that in of itself makes a successful company.

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-959 jhlewisjr Sun, 28 Feb 2010 15:16:00 +0000 http://www.metamorphblog.com/?p=39#comment-959 I always wondered what business model Angelsoft was using - 40,000 annual applications at $150 = $6,000,000 Not bad - that in of itself makes a successful company. I always wondered what business model Angelsoft was using – 40,000 annual applications at $150 = $6,000,000 Not bad – that in of itself makes a successful company.

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-302 Franzstehrn Sun, 28 Feb 2010 11:56:28 +0000 http://www.metamorphblog.com/?p=39#comment-302 gimme a break! I mean @Jason's stance against the keiretsu guys is great and also way different than this! they really charged a ton. 150$? come on. is that really a sum to get all ninja over against the ny angels? gimme a break! I mean @Jason’s stance against the keiretsu guys is great and also way different than this! they really charged a ton. 150$? come on. is that really a sum to get all ninja over against the ny angels?

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-958 Franzstehrn Sun, 28 Feb 2010 11:56:00 +0000 http://www.metamorphblog.com/?p=39#comment-958 gimme a break! I mean @Jason's stance against the keiretsu guys is great and also way different than this! they really charged a ton. 150$? come on. is that really a sum to get all ninja over against the ny angels? gimme a break! I mean @Jason’s stance against the keiretsu guys is great and also way different than this! they really charged a ton. 150$? come on. is that really a sum to get all ninja over against the ny angels?

]]> http://www.metamorphblog.com/2010/02/david-rose-why-ny-angels-charges-entrepreneurs.html#comment-301 Matt Mireles Sun, 28 Feb 2010 06:22:22 +0000 http://www.metamorphblog.com/?p=39#comment-301 Here's what they say RE: Valuation "Your valuation must fit within our risk/reward expectations for the investment. Typically, we look for pre-money valuations well below $3 million, from as little as $250K. It takes unusual situations (e.g., a company with existing revenues, issued patents and demonstrated growth) to get us to consider a pre-money valuation higher than $2 million. The general range of company valuations for the majority of New York Angels investments during 2003-2004 was $750K-$2.5M." <a href="http://newyorkangels.com/entrepreneurs/valuation.html" rel="nofollow">http://newyorkangels.com/entrepreneurs/valuation.html</a> Here’s what they say RE: Valuation
“Your valuation must fit within our risk/reward expectations for the investment. Typically, we look for pre-money valuations well below $3 million, from as little as $250K. It takes unusual situations (e.g., a company with existing revenues, issued patents and demonstrated growth) to get us to consider a pre-money valuation higher than $2 million. The general range of company valuations for the majority of New York Angels investments during 2003-2004 was $750K-$2.5M.”
http://newyorkangels.com/entrepreneurs/valuation.html

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