Thursday, February 25, 2010
Insights and Opinions: Does Your Angel Group Have A Great Rolodex?
For our Insights and Opinions section today, we have an article from Joe Platnick of the Pasadena Angels, who delves into some of the criteria for selecting an angel group.
Several months before Jason Calcanis' crusade (or jihad—depending on your political affiliation) against for-profit angel groups, I wrote a post about evaluating angel groups and the criteria to use when seeking investment. For those that didn't see the earlier post, the list included:
1. Do they charge fees
2. Do they actually have capital and a track record of investing their own personal funds
3. How transparent is their organization and investment process
4. How do they say 'no'
5. Honesty and integrity
6. Rolodex and connections
8. Are they respectful of entrepreneurs
9. Do they help entrepreneurs, regardless of whether or not they invest
10. Do they support the local entrepreneurial community
Although pitching fees—or pay to play—is a good litmus test for weeding out disreputable angel groups, you'll also find that for-profit angel groups typically have a poor track record with these other criteria.
Most angel groups have money, and one group's money isn’t any greener than another's. Beyond cash, the other ways an angel group adds value to a startup is through great advice and personal connections....(More...)