SXSW Interactive – Tuesday, March 11, 2008
Mar 12 2008

Yesterday was the last day of SXSW Interactive and I have practically a desk full of business cards.  Our son came yesterday (yes, it’s Spring Break here) for part of it as well but went with husband this time to a panel he attended.  I was only able to make one panel yesterday and spent the rest of the time networking.  Check out my posts on events I attended on Sunday (including my take on the Zuckerberg/facebook interview) and Monday.

Robert Scoble even did an interview of me that was posted to Qik but for some strange reason (due to the 3G connection) it got broken down to 16 different few second clips.  Here’s the first one, here’s a middle one, and here’s the last clip.  They are going to try to see if they can string it together, but it’s looking doubtful.  Guess that means we’ll have to do a more official one next time!

UPDATE: Qik was able to string pieces of the video together and you can see it HERE.  Once they get Robert’s phone, they will see if they can fill in some of the missing gaps using the files on his phone.  Once they do that, I’ll embed the video in a future blog post.

The Insiders Guide to Angel Investing
angel_button_frame.jpgThis panel was not really a panel because the only speaker was David Rose.  David is the founder of New York Angels and Angelsoft, a software application that helps angel investing groups manage plans received by entrepreneurs.  He had some great info on angels and angel investing.  He mentioned that he would make his slide-show presentation available and I will update this post if and when he sends the link, but here are some highlights:

  • There are 600K new companies started each year.  Of those 350K are self-funded, 200K are funded by friends and family, 50K by Angel investors, and a mere 1200 by venture capitalists.
  • Angels are generally about 57 years old, they have a master’s degree, 15 years of entrepreneurial experience, have been involved with and/or started on average 2.7 ventures.
  • To be an accredited investor you must have $1 million in assets and have to have made $200K of annual revenue for the past 2 years.
  • The average angel investor has spent 9 years investing, had done 10 investments, had 2 exits (profitable or lost their money), and 10% of their wealth is tied up in angel investments.
  • Angels look for companies with Scalable Business Models, an “Unfair Advantage,” a Great Entrepreneur, External Validation, Low Investment Requirement, Reasonable Valuation ($1 to $3 million pre-money range),  and a 20 to 30 times return on their investment within 5 to 7 years.
  • The single most important characteristic an Angel investor looks for in an entrepreneur is Integrity.  Then they look for Passion, Experience, Knowledge, Skill, Leadership, Commitment, Vision, Realism, and Coachability.

David said most angel investors don’t end up making a ton of money from angel investing.  In fact most lose money.  Many invest because they want to give back and help other entrepreneurs.  He even offered us a joke that goes like this:  How do you make a small fortune angel investing? You have to make a large fortune first! :-)

He then went on to talk about the process of applying to an Angel network and described what the entrepreneur as well as the Angel investor sees if they are using the Angelsoft software application tool.  If you are an entrepreneur, he suggested you submit your plan at www.angelsoft.net/entrepreneurs.   They will soon be launching a site called Open Deals where entrepreneurs who don’t have access to a local angel group can submit their plan.  For a full list of angel groups, check out the Angel Capital Association site and their directory of angel groups.

All in all, I had a great time at SXSWi.  I look forward to attending next year and maybe even being a panelist!

Author: | Filed under: angels, conferences, entrepreneur, entrepreneurship, fundraising, new york city, venture capital | Tags: , , , , , , , , , , , , | 7 Comments »

7 Comments on “SXSW Interactive – Tuesday, March 11, 2008”

  1. 1 The Angelsoft Blog » David S. Rose gives "Insiders Guide to Angel Investing" at SXSW Interactive 2008 said at 9:51 AM on March 14th, 2008:

    [...] Angelsoft CEO David S. Rose recently gave a presentation on angel investing at the South By Southwest Interactive Festival, which took place March 7-11. David’s “Insiders Guide to Angel Investing” provided entrepreneurs with valuable information on what they can do to secure angel funding and also gave an early look at the forthcoming entrepreneurs hub on Angelsoft!Aruni Gunasegaram, President & Founder of Babble Soft, LLC, attended the presentation and has posted notes on her entrepreMusings blog. Read them here.  [...]

  2. 2 entrepreMusings » The Economy and Entrepreneurs - Hold On! said at 3:45 PM on March 17th, 2008:

    [...] had several conversations with entrepreneurs coming from different parts of the country at SXSW Interactive who have been struggling for a while to raise funds for businesses that are up and running with [...]

  3. 3 entrepreMusings » 5 White Men, Rebranding, and Dads said at 10:09 AM on March 22nd, 2008:

    [...] were two recent posts written by Wendy Piersall of eMoms at Home.  After her recent trip to SXSW Interactive, she realized she needed to rebrand because many of her readers are not eMoms or even parents!  I [...]

  4. 4 entrepreMusings » SOBCon 2008 - Register Now! said at 8:20 AM on March 31st, 2008:

    [...] this year but plan to be there next year if at all possible!  I had the pleasure of meeting Liz at SXSW earlier this month and several of the bloggers who will be participating in the conference.  If [...]

  5. 5 entrepreMusings » I’m Apply for the Women 2.0 Napkin Business Plan Competition said at 12:02 PM on April 7th, 2008:

    [...] It’s a pretty short application form that challenges even the most frequent twitter user (i.e., type your thoughts in less than 140 characters) with maximum character requirements between 210 to 410 characters to describe things like your target market, business summary, or competitive advantage!  It sure made me focus on picking what I believe are the right words.  The online application form is run by Angelsoft, which I mentioned in one of my SXSW posts. [...]

  6. 6 Moms Gone Viral | entrepreMusings said at 7:00 PM on May 2nd, 2008:

    [...] phone a few times about ways to work together, became twitter pals, and finally met in person at SXSW here in Austin back in March and clicked even [...]

  7. 7 Building A Web Business After Hours | entrepreMusings said at 8:56 PM on August 14th, 2008:

    [...] this year, I had such a great time at SXSW Interactive 2008, that I submitted a panel idea for SXSW Interactive 2009 called Building A Web Business After Hours [...]