links for 2009-07-29

• The Three Key Fundraising Documents | Mark Peter Davis
  There are a number of materials that you may need to provide an investor during the course of the fundraising process. Three of these documents, however, are ones that nearly every investor will want to see as they each play a critical role in the process of engaging the investor.
• Double Drop: Funding for VCs, Startups Skids
  Now the issues have been laid out in the open. In the second quarter, both venture capital firm fundraising and funding for startups fell sharply, according to industry reports. Funding to VC firms collapsed 82 percent from a year ago as investments in startups dropped 49 percent. In short, the whole system is awry. Just how bad is the problem?

  Venture capitalists received $1.9 billion from limited partners in the second quarter of 2009. Even when the economy was faltering in 2008, the venture community had collected $9.3 billion, according to Thomson Reuters and the NVCA. It’s hit the lowest point since 1996, and one thing can’t be ignored: The recession is hammering the VC industry. Those that have raised new funds in the past year may well focus on their work, but those that haven’t and are under performing LP expectations may soon question their ability to survive in the industry.

  (tags: valuation vc venturecapital Venture firesale)

StartupNorth interviews NACO’s W. Daniel Mothersill & Bryan Watson

Craig Hayashi of Maple Leaf Angels has been doing an article series for the blog StartupNorth on the topic of startup funding sources, and in the most recent article he recounts his interview of NACO president W. Daniel Mothersill and NACO Executive Director Bryan Watson.  In this interview you’ll find:

• An overview of the Angel Network Program that NACO’s spin-off NAO-Ontario operates for the Ontario Ministry of Research and Innovation;
• A recap of NACO’s recent efforts, through its Co-Investment Summits, to promote collaboration among Angels and Angel groups seeking to satisfy companies’ second-round financing requirements which are no longer met by venture capitalists;
• Our latest work promoting co-investment by Europeans in Canadian startups;
• Word of our upcoming National Angel Summit in Toronto this October.

Thanks, Craig!  It’s always good to get the word out!

links for 2009-07-27

• Can Cleantech Entrepreneurs Rely on Venture Capital? – Renewable Energy World
  Despite the recent declines in investment, the macro-trends for cleantech venture capital are very positive — funds are getting bigger, the market for clean energy has grown to a respectable size and long-term signals from government are coming together.

  Last week, the Cleantech Group released a report on the state of venture capital, which showed that venture investments in the cleantech space were up 12 percent from the first quarter of this year. Total investments reached US $1.2 billion globally. That is still down over 40 percent from this time last year, but a rebound certainly seems to be underway.

  The characteristics of this growth are different than in the past. Many venture capital firms are opting to re-invest with their portfolio companies rather than dig for new opportunities. As a result, series A rounds dropped by half in 2008, according to figures from New Energy Finance.

• » Startup funding sources – National Angel Capital Organization | StartupNorth
  My previous article on start-up funding sources covered the Investment Accelerator Fund. For the next article in this series, I will cover the National Angel Capital Organization (NACO). I recently met with Dan Mothersill, President and Bryan Watson, Executive Director from the National Angel Capital Organization.
  (tags: naco angel angelinvestor startupnorth)

links for 2009-07-25

• Cleantech gets some respect
  Clean technology is emerging as one of the hottest investment bets of the year as activity in the environmentally friendly sector begins to turn the heads of hungry investors.

  In a week where power generation company TransAlta Corp. (TA/TSX) made a hostile takeover bid for Calgary-based clean energy firm Canadian Hydro Developers Inc. (KHD/TSX), and shares in geothermal energy producer Magma Energy Corp. (MXY/TSX) jumped 10% on news it had made an attractive foreign acquisition less than a week after listing, it has become increasingly apparent that cleantech is no longer on the fringe and is here to stay.

  (tags: cleantech)

Reuters Blog: Startups Better Off With Angels Than VCs

According to Eric Auchard, a contributor to Reuters‘ website, a newly released academic study has found that “self-financed Angel investors are often found where venture capitalists fear to tread,” and that angel investors also cut the start-ups they invest in better deals, both in early financing rounds and in cases where the company eventually makes its way to an initial public stock offering.

This study, co-authored by William Johnson and Jeffrey Sohl of the University of New Hampshire’s Center for Venture Research, 13.4 per cent of companies that do Initial Public Offerings have only had Angels as investors beforehand.

The researchers also found that Angel investors provide capital to industries that venture capitalists choose not to serve.

links for 2009-07-22

• Commentaries » Blog Archive » Start-ups better off with angels than VCs | Blogs |
  A newly released academic study finds angel investors also cut the start-ups they invest in better deals, both in early financing rounds and in cases where the company eventually makes its way to an initial public stock offering.
  (tags: angel angelinvestor VentureCapital vc IPO)
• Khosla near closing $1B in new funds – Silicon Valley / San Jose Business Journal:
  Venture capital icon Vinod Khosla is near to closing $1 billion in new investment funds, according to Forbes.com.

  Khosla, who helped found Santa Clara-based Sun Microsystems Inc., is on the verge of announcing two new funds with money from outside investors, including a $250 million vehicle for seed-stage investments and a $750 million fund called “KVIII” for larger deals, Forbes said, citing unidentified people with knowledge of the funds. One fund has closed already and the other could close soon.

  Khosla has been investing in start-ups, particularly in clean technology, with his own cash for several years through Khosla Ventures, his prominent Sand Hill Road firm. California pension giant CalPERS said several months ago it had committed $200 million to a new Khosla fund.

links for 2009-07-18

• iBusinessAngel » Venture Capital’s 70% drop creates Business Angel Opportunity
  “Venture Capital funds available for start-up and growth businesses has dropped 70% since 2000″, said Anne Glover chief executive of Amadeus Capital Partners at the BBAA Annual Awards Dinner.

  This means that businesses seeking new capital that are unable to raise bank finance (and who is able at present?) will need to increasingly turn to Business Angels.

  In the view of Anne Glover, this represents a huge opportunity for Business Angels as the Venture Capital businesses will not be able to take all the best deals and leave the angel investors with the left-overs.

  In fact, a theme that developed during the recent BBAA event was that Venture Capital firms want to work with Business Angels.

  A number of VC firms, such as Catapult, look to invest alongside Business Angels. Rob Carroll, managing director of Catapult said “investing alongside experienced entrepreneurs and angel investors increases our chance of success.”

  (tags: businessangel vc venturecapital bbaa)

Flow Ventures Invests in ArtAnywhere

Flow Ventures has made their second investment of 2009, into an online art rental business based out of Montreal called ArtAnywhere. This enterprise helps artists toiling in cities around the world hook up with people who want to turn their non-traditional spaces into galleries at a reasonable cost.

ArtAnywhere is also the first startup created and spun-out of Flow Ventures itself.  Leading ArtAnywhere is CEO and co-founder Christine Renaud, an experienced educator and social entrepreneur who is already well-known in local startup circles.

Congratulations to both Flow Ventures and ArtAnywhere for opening up a new niche with the power of the Internet!

Precarn Announces New T-Gap funding for Startup Companies

Precarn has just released a call for applications to its reinvigorated T-GAP Program. Like its predecessor, the program focuses on the gap between technology innovation and commercialization. The program is designed for very small and start-up companies working in the area of intelligent systems.  Applications must be received by September 2nd, 2009 for consideration under this program.

Precarn is seeking immediate applications to this program. $1,000,000 has been allocated for projects costing up to a maximum $75,000 in Precarn contribution. Precarn funding will be up to 65% of the total eligible project costs. Once a project is approved, 50% of the Precarn funds will be paid at midterm of the project and the remaining 50% will be paid upon project completion and delivery of a final report.

Full details can be found on Precarn’s web site by clicking here or pasting the following in your web browser (http://www.precarn.ca/news/2009TGAP.html)

The Technology-Gap Assistance Program (T-GAP) is the conduit through which the funds are awarded.

The T-GAP program has the following characteristics:

• A focus on very small (2-10 person) companies and start-up companies;
• Maximum funding is $75,000;
• Maximum Precarn support is 65% of total project costs;
• Project duration of six months or less;
• Proposals may be submitted at any time; and,
• 50% of Precarn’s contribution will be paid at the midpoint of the project and the remaining 50% will be paid upon project completion and receipt of the final report.

Available funds are primarily intended to bring technologies closer to commercial readiness; naturally, this represents a wide range of different activities, but some examples include:

• Building engineering prototypes,
• Refining and implementing designs,
• Conducting scale-up activities,
• Product-specific market research,
• Conducting field studies, or
• Carrying out technical and market assessments.

Equally diverse are the expenses that can be claimed under the program; typical examples include:

• Salaries,
• Consultants fees,
• Materials and supplies,
• Project-related travel, and
• Other necessary direct costs

Available  funds are primarily intended to bring technologies closer to commercial  readiness; naturally, this represents a wide range of different activities, but some examples include:  building engineering prototypes, refining and implementing designs, conducting scale-up activities, product-specific market research, conducting field studies, or carrying out technical and market assessments.

For the details download one of the following:

Download the T-GAP Proposal requirements here (PDF)

Download the T-GAP Proposal requirements here (MS-Word)

links for 2009-07-13

• TechCrunch founder launches hardware startup | VentureBeat
  A year ago, TechCrunch editor Michael Arrington announced his plan to build a “dead-simple Web tablet for $200,” using crowdsourced designs from his readers.

  Today Arrington announced the formation of Crunchpad, Inc, a startup company with 14 employees in Singapore. Crunchpad will oversee manufacture of the device, also called the Crunchpad.

  (tags: MichaelArrington angel hardware vc technology)

60% Teleconferencing Discount for Angel Groups & Angel Investees

The National Angel Capital Organization, on behalf of its member groups and the early-stage companies they invest in, has negotiated a 60% discount on the already low costs of Calliflower’s groundbreaking teleconferencing service.

Managed through your web browser, Calliflower’s teleconferencing solution allows you to send invitations with individualized PIN numbers with easy calendar integration.  You can also share documents, record sessions, and collaborate from around the world through local dial-in numbers.   Best of all, this service is available at a flat rate!

To receive the discount code for your Calliflower registration today, just fill out this handy form!

NASVF 16th Annual Conference – September 14-16, 2009 in Oklahoma City

On September 14th, 2009, the National Association of Seed and Venture Funds will open its 2009 Conference in Oklahoma City, Oklahoma.   This event is open to:  Angel Investment Leaders, Tech Commercialization Experts, Seed and Early Stage Fund Managers, Fund-of-Fund Managers, State Venture Capital Leaders, and Institutional Investors.

More than 60 speakers will be present at the NASVF Annual Conference, discussing such topics as:

• Angel Investing
• State Programs
• Entrepreneurial Development
• Innovation & Capital
• Hot & Sizzling Investment Markets
• Clean & Green
• Capital Formation in Underserved Markets
• Best Practices in Seed Investing

NASVF non-members can register until July 24th, 2009 at the early-bird rate of $650 (US).

• Seed and Early Stage Fund Managers
• Fund-of-Fund Managers
• State Venture Capital Leaders
• Angel Investment Leaders
• Institutional Investors
• Tech Commercialization Experts

Gowlings Hosts “Starting and Managing a Company in Troubled Times”

On July 28th, 2009 from 8 a.m. to 1 p.m., Gowling Lafleur Henderson LLP will host a seminar at their office in Toronto titled Starting and Managing a Company in Troubled Times:  Tips and Tricks to Survive and Thrive in the Current Environment. Topics include:

• Challenges of Financing and Structuring a Startup Company
• Cost-effective Protection of Intellectual Property
• Surviving an Intellectual Property Audit
• Employment 101: Avoiding the Top Traps in Employment Law

For further details and to register, click here!

links for 2009-07-11

• Ron Conway Outlines Twitter’s Possible Revenue Schemes – Venture Capital Dispatch – WSJ
  Twitter investor Ron Conway responded sharply to media moguls’ criticisms of the short-messaging service and related start-ups that haven’t so far been big revenue generators.

  Conway, speaking at a TechCrunch conference Friday about Twitter and related companies, compared Twitter to Google Inc. in its early days and said there are sizable revenue opportunities around “now media” — a range of start-ups that build on Twitter’s real-time communication.

NACO Chairman Andrew Wilkes’ Participation in Wisdom Exchange 2009

The Ontario Ministry of Small Business and Consumer Services has released the program report that captures the key points of the workshops and presentations at Wisdom Exchange 2009, which took place February 18th and 19th in Toronto.  NACO Chairman Andrew Wilkes participated in the session Managing Finances in Challenging Times, and his presentation was well received by the participating presidents and CEOs.

Check out the program report for the 2009 Wisdom Exchange here!

Maple Leaf Angels Managing Director Rob Koturbash interviewed on Startup North

Yesterday Craig Hayashi (a member of Maple Leaf Angels) contributed an interview of Rob Koturbash, managing director of Maple Leaf Angels, to the online publication StartupNorth. This interview provides an overview of Maple Leaf Angels, common pitfalls for entrepreneurs seeking funding, and some good advice to them.  The keywords of the day are  relationships, persistence, and external referrals.

This interview is the beginning of a series of articles by Craig on the funding sources available to startup enterprises – don’t miss a one!

links for 2009-07-07

• peHUB » Dollars Tick Upward for Clean Tech Investments
  Thanks in part to the roughly $92 billion dollars that clean tech startups are hoping to wring out of President Obama’s economic-stimulus bill of earlier this year, VC investment into so-called “green” technologies jumped meaningfully between the second and first quarters of the year, according to Greentech Media, which covers the industry exclusively.

  In a newly released report, Greentech counts $1.2 billion in 85 deals in the second quarter of 2009, up from $836 million in 59 deals in the Q1.

• Despite End of IPO Drought, U.S. Venture-Backed Liquidity Market Hovers at 6-Year Low
  SAN FRANCISCO, July 1 /PRNewswire/ — Even with the end of a nine-month drought in initial public offerings (IPOs), the second quarter was one of the worst for venture capital-backed liquidity since the doldrums of early 2003, according to leading industry tracker Dow Jones VentureSource. Overall venture-backed liquidity fell 57% from $6.48 billion in the second quarter of 2008 to $2.8 billion in the most recent quarter.

  Venture capitalists generated $2.57 billion through mergers or acquisitions (M&As) of 67 portfolio companies in the second quarter, a 60% decline from the $6.48 billion raised via 89 M&As in the same quarter in 2008 and the lowest quarterly M&A deal total since 1999. Three venture-backed companies made public-market debuts in late May and June, raising a total of $232 million. In the prior 13 months, only one other VC-backed company completed an IPO, in August 2008.

  (tags: vc liquidityevent)

News release: A Transatlantic Angel Partnership – EBAN-NACO Memorandum of Understanding

For immediate release

A Transatlantic Angel Partnership:
Canada’s National Angel Capital Organization Signs Agreement
with European Business Angel Network

Toronto, July 7, 2009 – The National Angel Capital Organization (NACO) and the European Business Angel Network (EBAN), representing Angel investors in Canada and Europe, have signed a Memorandum of Understanding (MoU) that promotes exchanges of knowledge and best practices, as well as co-investment in larger growth opportuities, by Angels in these two jurisdictions.

This MoU follows the spirit of the Department of Foreign Affairs and International Trade’s (DFAIT) Global Innovation Strategy (GIS), which aims to provide international access to specialized knowledge, technology, talent and capital for innovative, growth-oriented firms.

On signing the MoU, NACO President W. Daniel Mothersill said, “This agreement follows the co-operative spirit shown by the recent opening of free trade talks by Foreign Affairs Minister Stockwell Day and European Union Trade Commissioner Catherine Ashton.  DFAIT deserves our particular gratitude at this time, for their support of the Angel Co-Investment Meeting in San Diego where this Memorandum of Understanding was first proposed.”

EBAN Managing Director Claire Munck replied, “Across the globe, venture capitalists are retreating from critical but risky early-stage enterprises.  In response, Angels worldwide must step up their investment of capital and mentorship in these pathfinding businesses.  This agreement will support Angels’ work in the early-stage entrepreneurial space by affording them further opportunities for learning and for diversification.”

In addition to sharing information, the European and Canadian Angel organizations will exchange delegations and guest speakers for each others’ annual conferences, and will work together to develop bilateral contacts and common projects, such as Co-Investment Summits that present promising early-stage enterprises to Angel investors.  This will help draw the Angel communities in Europe and Canada together, allowing them to serve as gateways to the vast markets of their respective continents.

- 30 -

About Angel investors

Angel Investors are individuals who invest their own money in start-up companies, often providing business expertise that contributes to the success of young companies. Because Angel investors typically invest at an earlier stage of growth and provide more business guidance than venture capital providers, Angel investors are key players in generating high growth companies essential to regional  economic development and Canada’s economic competitiveness.

About the National Angel Capital Organization

The NACO is the industry association representing Angel capital in all of its forms throughout Canada. NACO promotes a vibrant Angel community and culture through the development of formal Angel investor groups, best practices education and mentoring programs, and the formation of collaboration and co-investment mechanisms. Our mission is to increase the quantity, quality, and success of Angel investments in Canada, thus creating a greater pool of capital for innovative start-up companies.

About the European Business Angel Network

EBAN is the independent and non-profit European trade association for business angels, seed funds, and other early stage market players involved in bridging the equity gap in Europe.  EBAN’s purposes include:  representing the early stage investment market in Europe; researching the angel market to produce facts and trends; identification and sharing of best practices; promoting the role and visibility of business angel networks and early stage funds in Europe; and supporting the internationalization of the angel and early stage industry and movement.

Media Contacts

Claire Munck                                                           W. Daniel Mothersill

T: +32 2 626 20 61                                               T: 416-581-0009

E: claire.munck@eban.org E: dan@angelinvestor.ca

W: www.eban.org W: www.angelinvestor.ca

links for 2009-07-06

• Boosting Regional Economic Development is No. 1 Objective for Local Angel Investment Organization
  Golden Triangle Angelnet provides a local forum for the presentation of high-potential investment opportunities to a network of investment angels from the Golden Triangle region. It brings together education, business intelligence and financial opportunity within one central, established group of professionals.
  "Ontario is prepared to compete on our talent, our skilled workforce, and our ability to turn research and new ideas into world-class products and services. We are proud of the work that partners like Golden Triangle Angelnet are doing to help young and emerging companies thrive, create new jobs and
  strengthen Ontario's economy." — John Milloy, Minister of Research and Innovation.
  (tags: angelinvestor angelinvestment businessangel CNW JohnMilloy goldentriangelangelnet)

links for 2009-07-04

• Bulls*%t, Next Slide… | FLOW Ventures
  We had an entertaining speaker at last night’s meeting of Anges Quebec. Andy Nulman of Airborne Mobile and Just for Laughs fame, spoke about his experiences as an entrepreneur and his thoughts on Angel investing. I don’t know Andy but he’s absolutely hilarious.
  (tags: angelgroup pitching angesquebec)