How Angel Investors Are Funding A Whole New Generation of Startups

How Angel Investors Are Funding A Whole New Generation of Startups

Angel investor groups are acquiring better acknowledgement as primary patrons in early-stage industry, attaining eminent rankings in industry-related annual surveys of private equity investment firms for entrepreneurs.

Angel assets are an up-and-coming part of the financial order, similar in significance to venture capital in the Seventies, according to experts in the field. Angel groups are starting to be viewed with much more importance by present financial companies.

An important angel investor group is The Band of Angels is Silicon Valley’s oldest seed funding organization. A formal group of 150 former and current high tech executives who are interested in investing their time and money into new, cutting edge, startup companies. They have seeded over 277 companies with 55 profitable M&A exits and 10 Nasdaq IPOs. Band members have founded companies such as Symantec, Logitech, and National Semiconductor and been senior executives at the likes of Sun Microsystems, Hewlett Packard, and Intuit.

angel-screen

AngelList on the other hand is one of the new breed of investment vehicles providing a website for startups, angel investors, and job-seekers looking to work at startups.

The platform has a mission democratizing the investment process. It started as an online introduction board for tech startups that needed seed funding. Now, the site allows startups to raise from angel investors free of charge.

AngelList syndicates allow investors to invite other accredited investors to share in the deals

Angels are characteristically high-net-worth individuals or “cashed out” entrepreneurs who are involved in nurturing other entrepreneurs and are vigorously associated with the ventures they support, both pre-funding and post-funding. Recently, a growing number of angels have come together to develop angel groups, with a view toward putting together capital and investment proficiency. There are an estimated 200+ such angel investor organizations in the United States.

Angel investor groups have emerged as important participants in offering equity capital to early-stage ventures. Angels have developed from investing as individuals and at times fashioning informal groups for particular investments, to forming official groups with vigorous venture-capital-like procedures.

With the venture capital society becoming more complicated, angel investor groups have also changed according to the needs of the new situation. A majority of present day angel investors are highly enlightened about investments, due to the presence of experienced angel groups who have common performances.

Any individual angel investor can obtain an immense advantage from the group’s expertise if he decides to become a part of a considerate group of angel investors.

Here are 6 of the new breed of startups seeking funding from angel investment

1. Shinesty

shiney

Irreverent fashions for events year round.
Boulder · E-Commerce · Fashion

Shinesty helps people who want to look awesome find unique and irreverent clothing for events year-round.
Shinesty launched in January of 2014. In the last 6 months, sales have grown by over 1300%, and orders are up by over 1100%. We’ve created a repeatable, cost-effective acquisition strategy leveraging viral reach and efficient paid digital media. Our rapid growth is constrained today only by our ability to keep products in stock.

Americans spend $225 billion on apparel every year. They want a unique look for events, holidays, and festivals. Finding unique clothing for all these events is hard. eBay sucks, thrift stores stink, and costume companies all sell the same crap.
Shinesty combines the world’s most outrageous collection of attention-grabbing, aphrodisiacal products with a witty and entertaining tone. Together, these create an inherently viral lifestyle brand that stands out from the crowd. Shine On.

2. Crew

Crew

Creativity on demand.
New York City · Mobile · Marketplaces · Design · Collaborative Consumption

Crew connects vetted projects with a handpicked community of independent designers and developers who have worked on products like Hotel Tonight, Dropbox, and Path.
1. Submit your idea
2. Get a budget recommendation
3. Start working with the best maker for your project within a day.
We are at the start of the most significant economic movement since the Industrial Revolution. With the tools available today, work is being redefined. We have more power than ever before to be our own bosses. To stay independent. To develop our own passions. And work from any space, any place, anytime, anywhere.

At Crew, we’re building a system for this new economy. One that values the results of the work done, not just the dollar price. Where people receive quality results, independent professionals get consistent quality work, and products are created that both client and maker can be proud of.

3. NewsWhip

Social analytics for the whole world’s content

NewsWhip tracks and predicts the stories, events and people getting engagement on social networks. From it surfaces the world’s most interesting news, in real time, in 15 languages, 30+ countries, and millions of niches.
NewsWhip’s dashboards are used by journalists, communicators, marketers and other media professionals wishing to understand where the world’s attention is flowing each day. Its data is used each day by customers including BBC, Disney, BuzzFeed, the Washington Post, Edelman, Digitas LBi, The Guardian and hundreds more.

4. Momunt

The photos around you.
San Francisco · Social Media · Local · Photo Sharing

See the photos the world is sharing around you in real-time. Snap your own photos to add to the momunt, or search through the momunt to create a personalized collection to save or share.
Momunts are collections of photos shared around a location and include images from Instagram, Twitter and Momunt itself. Photos posted to Momunt are public, anonymous and location-locked. You can only see photos being shared in the momunt you’re currently tuned into.
Check out your personal momunt – the photos shared around you – or use the map to teleport to any location in the world. Follow the locations you want to visit again and again. Momunt is your passport to the world.

5. Vacatia

Vatica

Resort marketplace for vacationing families
San Francisco · Vacation Rentals · Sharing Economy · Families · Timeshares

Vacatia is the resort marketplace for vacationing families. Our sole mission is to help families find the perfect resort residence – their spacious home base for creating fun, shared vacation memories.
Vacatia provides search results for dozens of the leading hospitality, timeshare, and premier independent resorts – fully managed and professionally serviced timeshare and resort-condominium complexes combining home-like comforts and delightful amenities.

Vacatia has created and continues to curate the Vacatia Resort Database (the “MLS of resorts”). Vacatia.com currently hosts our vacation ownership (timeshare) sales marketplace although the team is almost entirely focused on our vacation rentals marketplace, which is in private beta.
Market: 9M Americans own a timeshare (t/s); 250M annual t/s rooms globally (equivalent to 25% of all U.S. hotel nights); $10B new t/s sold annually plus $10B backlog of resale inventory in NorthAm; $10B+ estimated t/s rental market opportunity globally

6. Filament

Connected Devices + Blockchain = Decentralized IoT

Filament (previously known as Pinoccio) is the best tool on the market for industrial sensor data collection, remote monitoring, and web-based control of the real world.
Even more importantly, Filament is building the first Decentralized IoT stack, so that any device can discover, connect, interact, and even transact, without any central authority required.
WHY ARE WE DIFFERENT?
Filament is incredibly easy to use. Set up a web-enabled mesh network within 30 seconds of unboxing. Connect to existing infrastructure and make a 30 year old manufacturing line assembly machine smart and connected, with its own API.
WHO IS THE CUSTOMER?
• Industrial customers
• Research institutions
• Tech companies
• Design agencies

Here is a list of 10 of the most active active US angel investors

With less than 3% of seed deals being funded by venture capitalists, seed funding has become more accessible thanks to the rise in angel investor activity in the past few years. Between friends & family financing, which is estimated to be a $100 billion industry and angel activity estimated at $20 billion, more than $120 billion dollars are invested in early-stage startups annually.

The following is a list of some of the most active and influential early-stage angel investors. Please note that the order is arbitrary.

1. Jeff Bezos

Jeff Bezos is the Founder, President, Chief Executive Officer, and Chairman of the Board of Amazon.com. Under his leadership, Amazon.com became the largest retailer on the Web and the most widely adopted model for Internet sales.

In 1999, Time Magazine named him Person of the Year. In 2011, The Economist gave Bezos and Gregg Zehr an Innovation Award for the Amazon Kindle, and in 2012, Fortune magazine named Bezos Businessperson of the Year. Businessweek ranked him the no. 7 Top Angel in Tech in February 2010, and the Harvard Business Review also has listed Bezos as the second-best CEO in the world, after the late Steve Jobs of Apple.

Investments: 11, starting from $1.5m

2. Paul Buchheit

Paul Buchheit is a partner at Y Combinator, a Silicon Valley-based seed accelerator that has funded more than 550 companies in more than 30 different markets. These companies include Reddit, Dropbox, and Airbnb. In 2012, Forbes named Y Combinator as a top startup incubator and accelerator.

He was the 23rd employee at Google, where he created Gmail and implemented many of its innovative features. He developed the original prototype of Google AdSense, and was responsible for Google’s famous “Don’t be evil” motto. In July 2012, Businessinsider.com included him in its list of Top 50 Early-Stage Investors in Silicon Valley.

Investments: 61, starting at $70k (as a partner at Y Combinator: more than 450)

3. Jeff Clavier

Jean-François “Jeff” Clavier is the founder and managing partner of SoftTech VC, a venture capital firm in Silicon Valley that has closed more than 150 investments since its founding in 2004. Among the successful startups that SoftTech VC has backed are Mint (sold to Intuit for $170m), Kongregate (GameStop), Milo (eBay), Wildfire (Google), and Class Dojo.

Time Magazine named Clavier as one the top 25 most influential people on the web in 2008. In July 2012, Businessinsider.com named him as one of the Top 50 Early-Stage Investors in Silicon Valley. In February 2010, Buinessweek.com ranked him 19th among their Top Angels in Tech.

Investments: 17, from $50k to $6m (as managing partner of SoftTech VC: 145, from $200k to $40m)

4. Paul Graham

Paul Graham is a partner at Y Combinator. In 1995, Graham and Robert Morris created Viaweb, the first ASP, which in 1998 became Yahoo! Store. In 2002 he devised a spam-filtering algorithm that has inspired the current generation of filters.

Businessinsider.com named him to their Top 50 Early-Stage Investors in Silicon Valley in July 2012, and February 2010, Businessweek.com listed him as number 11 Top Angel in Tech.

Investments: 8, from $100k to $1.6m (as a partner at Y Combinator: more than 450)

5. David Lee

David Lee is Founder and Managing Member at SV Angel, LLC, an angel fund with investments in companies such as Twitter, Foursquare, Flipboard, Dropbox and Airbnb.

In July 2012, Businessinsider.com included him in its list of Top 50 Early-Stage Investors in Silicon Valley.

Investments: 101, $25k to $250k

6. Max Levchin

Max Levchin is President and CEO of HVF, LLC, an umbrella project for his ventures related to low-cost sensors of all types, near-ubiquitous wireless broadband, and advances in distributed

computing and storage. Levchin believes that data is becoming our most plentiful and most under-exploited commodity. Levchin co-founded PayPal and was its CTO from founding through its acquisition by eBay. His contributions to PayPal’s antifraud efforts are well known, and he also was the co-creator of the Gausebeck-Levchin test, one of the first commercial implementations of a CAPTCHA.

In 2010, Businessweek .com ranked him 12th in its list of Top Angels in Tech. In May and July 2012, Businessinsider.com included him in its Top 50 Early-Stage Investors in Silicon Valley.

Investments: 34 ,starting at $25K

7. Benjamin Ling

Benjamin Ling is an entrepreneurial investor at Khosla Ventures, a venture capital firm focused on environmentally friendly technologies and traditional venture areas such as the Internet, Benjamin Lingcomputing, mobile and silicon technology arenas. Additionally, he has held senior positions at Facebook and Google.

In July 2012, Businessinsider.com named Ling to its list of Top 50 Early-Stage Investors in Silicon Valley.

Investments: 81, $50k to $250k (Khosla Ventures: more than 240, from $350k to $130m)

8. Marissa Mayer

Marissa Mayer is the President and CEO of Yahoo! Previously, she was at Google, where she was Vice President, Location & Local Services, and Vice President, Search Products & User Experience. Many publications have recognized Mayer’s accomplishments. These include the New York Times, Newsweek, and BusinessWeek. Fortune magazine has listed her for the past three years on its annual Most Powerful Women’s list, and she was the youngest ever to appear on the list. Businessinsider.com named her to its Top 50 Early-Stage Investors in Silicon Valley in July 2012.
Investments: 12 investments: Trainia Interactive and IfOnly

9. Dave McClure

Dave McClure is a Founding Partner at 500 Startups, a Silicon Valley seed fund and accelerator founded by former employees of PayPal, Google, YouTube, and Yahoo! The fund invests in internet startups on search, social, and mobile platforms. Its initial investment size is typically $25k to $250k. He was also among Businessinsider.com’s Top 50 Early-Stage Investors in Silicon Valley in July 2012.

Investments: 61, starting at $50k (500 Startups: more than 360, from $25k to $24m)

10. Dave Morin

Dave Morin is Co-Founder and CEO of Path, a mobile network. He also once ranked as one of the United States’ top downhill ski racers.

Businessinsider.com named him to its list of Top 50 Early-Stage Investors in Silicon Valley in July 2012.
Investments: 67, $25k to $50k

Recent investments: SocialRadar and Crowdtilt

If you want to know more about starting your business by minimizing the risks, and using less cash get my Top Resources Report

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