http://angelnetwork.com/ammlive/ – Tip Of The Day – Greg shares how the way we treat our employees rolls over to our customers and customer referrals.
**What is Angel Investors Network?
Angel Investors Network (AIN) was created by a group of successful entrepreneurs, investment bankers, angel investors, marketing and management experts, lawyers and accountants who have built companies in a diverse set of industries.
AIN offers investors an opportunity to participate in the buying and selling of businesses, making equity investments, and providing debt financing to businesses with the opportunity of managing risk and creating wealth.
AIN also works with investors, marketing strategists, management experts and financial gurus who combine their skills and experience to work with our target entrepreneurs and make them highly successful business owners.
We are more than just Angel Investors. We are a community of experts that invest our time, expertise, and money in exchange for equity with the objective to perpetuate free enterprise, capitalism and support the entrepreneur spirit while creating wealth, happiness and fulfillment for all those involved.
The first European Business Angels Investment Forum was held at the Shangri-La Bosphorus and Hayrettin Iskelesi sk hotels in Istanbul,Turkey. It was organized by EBAN, Business Angels Association – Turkey (TBAA), Borsa Istanbul, and Forbes I Para Conferences.
With the theme ‘Access to Finance from Start-up to Scale-up to Exits’ the forum was attended by 284 Angels from 36 countries; university officials and professors, bankers, company officers and crowdfunding platform owners.
It is important that we recognize the importance of angel investments in supporting startups. The European Governments know the importance of angel investment in funding startup and early stage businesses in Europe, so they provide tax incentives to individuals that back small businesses as well. EBAN President Candace Johnson remarked “In Istanbul our TBAA colleagues bridged the gap between Stock Market Exchanges and Business Angels with a most thoughtful, insightful Investors Forum in one of the most beautiful cities in the world. Majestically presented to all present with midnight tours and local culture, Istanbul was also the perfect place for our new MBAN Colleagues to come together and have a special Middle East Forum where four world-class entrepreneurs were showcased to investors from around Europe, the Middle East and the world.”
TBAA President Baybars Altuntas said “The forum attendees learned the intricacies of the Turkish ecosystem. Turkey recently passed the Angel Investment Law in one year, legislated the highest tax incentive in the world in nine months, and involved its exchange as an exit strategy for early stage investments”.
He further adds “The Forum also brought together the key stakeholders of the equity market, analyzed the challenges and advantages in angels’ investing, and found out what more could be done in connecting the early stage market ecosystem. We also deliberated if there is still a need to change regulatory and fiscal rulings. We also defined how angel investors should approach the public markets.”
“It has been the greatest privilege for EBAN to work with the newly established MBAN and ABAN entities this last six months and we are so looking forward to a glorious 2015 where cross-border engagement will give way to cross-continent engagement and wonderful global EMEA Success Stories”
Candace Johnson added.
All 18 key findings in the forum will be officially declared at the Special European Business Angels Forum session to be held at the World Entrepreneurship Forum on November 2015 in China.
THE KEY FINDINGS ARE:
1. A reliable local ecosystem is essential for cross-border angel investments. Stock markets can create a platform where angels and startups can meet and negotiate.
2. Open a Private Market for startups and entrepreneurs. In this market, all must register as stock exchanges, be accredited angel investors and have access financing in a secure environment.
3. Mentorship programs, independent audit firms and other service providers must be present in this reliable local ecosystem.
4. Develop co-investment funds. Banks, as public entities, should invest together with angels in startup investments. A certain percent of the profits, say 1 percent, should go to the co-investment fund.
5. Private investors should be allowed to make co-investments with public funds.
6. With European Union funds, policy makers should undergo training on how to’s and the advantages/disadvantages of co-investment funds. Policymakers must be trained to show the best practices, pro – cons and how to’s of co-investment funds. EU should finance these training best practices and how to’s.
7. While pitching to angels, startups should demonstrate their products. Crowdfunders should be considered as mini-business angels, and thus be accepted as a seed funding structure around the globe.
8. Stock exchanges and crowdfunders complement each other, rather than compete.
9. At the start of any entrepreneurial journey, the first to support the startups are crowdfunders and the last help will be from stock exchanges. Thus, there is a need to create an information drive among the key stakeholders and guide the entrepreneurs on where to go for financing.
10. Aside from money, the startups need know-how, mentoring and networking. The public can provide financing, but the rest comes from business angels. Cooperation between the two should be fostered and public money should be converted to smart money.
11. An accreditation scheme should be established to qualify angel investors, and thus be recognized by public authorities.
12. Legislation that will set the same minimum amount for qualified angels to invest in startups.
13. Turkey has a very dynamic and fresh angel investment ecosystem. Within the next few years, the ecosystem will be able to provide successful exits for startups.
14. The Business Angel Networks in Turkey should be able to connect with the global angel investment market to facilitate exit strategies. There is a need to follow global events and create links with key players.
15. Business Angels of Turkey see foreign angels as their ‘mentors.’ Thus, there is a need for policy makers to provide more incentives to foreign investors that work with Turkish angels.
16. Acceleration centers should be established, and be accepted as institutional angel investors.
17. These acceleration centers will check professionally all startup applications for financing, if they are already investment ready. If and when angels receive requests for funds, they will first forward these to acceleration centers for verification.
18. When the acceleration centers are established, then startups should not go to an angel investor directly, but to the said center first. Startups should have to understand that acceleration centers are highways to access smart money.
This acclaimed, semiannual conference presents the critical facts you will need to make key decisions for your business, staffing and team inspiration in 2015. Gather the latest information, tools, and resources to propel your business farther, faster in 2015 and beyond, with this important information.
The most important information that business owners should walk away with from this event
Speakers Terry Paulson and Bill Dallas
Optimism is Terry Paulson’s message, and how that can be inspirational to business growth and success this year and next.
Business leaders, owners and entrepreneurs will benefit from the kind of energy Terry brings during a time in which their efforts will pay large dividends if they seize the current moment.
The housing carnage in the economy has finally passed. Bill Dallas is a very timely speaker who will review how that carnage has reshaped the current landscape and what business owners, leaders, and entrepreneurs can expect from the housing market in 2015-16, in terms of it’s importance, acquisition timing, and likely performance.
Do you do business in California? Will you be making investment, staffing, or inventory decisions about that business over the next year? If so, then you’ll be more informed about the business cycle and the extent to which the State and regional economy will perform this year and next. Dr. Schniepp will discuss the direction of economic growth in the state and Ventura County, and what you should consider as you plan your business strategies this year and next.
The most valuable insights that business leaders and entrepreneurs should know for their business
Here are some basics to keep in mind when investing in early stage companies.
1. Don’t invest if you can’t afford it. Angel investing is a high-risk, high-reward game. You must be able to financially with stand and be prepared to lose 100% of your money.
2. Don’t invest in lifestyle companies. Lifestyle companies are service companies, i.e. law firms, local deli. These businesses have limited scalability. The high-risk, high-return game only works if the company is scalable and could return high multiples of your money. You will never get an exit or IPO out of a local restaurant.
3. Don’t put all your eggs in one basket. Angel investing is so risky that you have to diversify risk by making a number of investments.
4. Don’t invest if you don’t believe in the team. The biggest factor in early stage investing. Good ideas are commodities – a dollar a dozen. Invest in A teams with B ideas and B teams with A ideas. The ideas can always change, but it’s the best team that perseveres and executes that will succeed.
5. Don’t be overly optimistic. Be skeptical of everything a founder tells you. It’s their job to infect you with their passion and make you excited about their startup. It’s up to you to dig in deep and do your homework (due diligence) and find out whether they’re the real deal or not.
New products are no longer just for institutions and ultra high net- worth individuals. Their creators are putting alternatives in front of a broad range of accredited investors at an exponential rate.
The list is growing. There’s everything from commercial real estate including multifamily, office, retail, industrial, and hospitality- to mention a few. There is also self storage, data centers, medical offices, student housing, seniors housing, and single family housing.
Some say alternatives can act as a compliment, smoothing out the highs and lows of the market and reducing volatility.
We have seen a lot of publicity recently about non-traded REITS being acquired, going public, and shaking loose some potential illiquidity. As success is publicized, the rest of the market recognizes it and then begins to go after the sector.
Other say it’s the baby-boomer investors that increased interest because of the volatility they endured during the financial crisis and the growing closeness of their retirement. Advisors are warning against too much exposure to loss just before retirement.
Accredited angel investors are increasingly aware of alternatives, whether from news reports or conversations at cocktail parties with other investors.
A word to the wise, they are not suitable for everyone. Each offer can be very different, even if they are in the same sector. You have to move cautiously and do your homework. Two multifamily offerings can be as different as night and day on structure, payout, ROI, liquidity, exit in case of emergency, commitment of time for funds, and on and on.
A GROWING MARKET
Growing interest and hefty commissions are also leading more financial services firms to enter the alternative space.
The number of alternative investment funds monitored by the research firm Morningstar has grown from 239 in 2009 to 424 in 2013- a 77 percent in- crease. A growing wave of money has been pouring into those funds as well. Total invested assets in these funds have nearly tripled since 2009, rising from about $49 billion to $139 billion, according to data from Morningstar.
There is more education for you to learn about the key to potential success. Interested?
The pundits are saying that growth in equities and fixed income may be flat in 2014. So, where are people looking? Alternatives!
The first thing to realize is in alternatives there is less standardization and transparency, requiring more study and homework on your part.
Don’t forget it starts with the most important question, “What are your goals and how might any alternative investments meet your needs?”
Some alternatives can be highly illiquid, while others can seem very lacking in clarity and transparency. Don’t be fooled by glossy brochures with a hard to understand structure.
During extended periods of low interest rates, investors often seek products offering more attractive yields.
If you are an investor considering alternatives, be sure you fully understand:
• Illiquidity and valuation complexities
• Fees can add up- what are the fees, commissions?
• What are the Complexities and Risks
• Distributions may not be guaranteed
• Distributions may carry tax consequences
• Early redemption is often restrictive and may be expensive
• Operating expenses can eat up profits