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Heaven on Earth--Finding an Angel Invest... > Angels or Devils--You Be the Judge - Pg. 83

Start-Up Financing 83 Mid-Atlantic Venture Fair c/o Mid-Atlantic Venture Association (MAVA) 1600 Tysons BLVD Suite 575 McLean, VA 22102 (703) 506-9300 The Gathering of Angels #4 Hawthorne Circle Santa Fe, NM 87506 (505) 982-3050 MATCHING SERVICES AND ONLINE BROKER-DEALERS Garage Technology Ventures 502 Waverley ST Suite 300 Palo Alto, CA 94301 (650) 838-0811 Virginia Center for Innovative Technology meetings, social and country clubs, and virtually any other place where semire- tired and cashed-out entrepreneurs may hang out. Angels may invest alone or as a group through clubs and networks ("bands of angels"), and while many won't individually consider a deal that requires more than $50,000, a growing number of very-high-net-worth individuals ("superangels") will invest $500,000 or more of their own money and help you identify other potential investors. These super- angels also bring respect and credibility to a new business because others respect their expertise and industry knowledge. As I mentioned earlier, you've got to do your own due diligence on each an- gel you consider. Remember that the relationship is akin to that with a spouse or parent--so you have to be sure that you can get along personally with the individual. You'll also need to define your nonfinancial expectations and have a meeting of the minds on these issues. A good angel offers you (and your business) a lot more than money, and you need to reach an agreement regard- ing how much of the angel's time will be available for advice, coaching, and mentoring, and also what doors the angel is expected to open on your behalf. Ideally, your angel should have a diverse (and current) network, deep industry experience, and significant company-building experience, in addition to being a source of seed capital. The angel-entrepreneur relationships that don't work out over the years often fail because of misunderstandings about the nonfinan- cial aspects of the relationship. Angels or Devils--You Be the Judge In the rough-and-tumble world of new-venture investing, one common myth is that angels--because they invest in part for nonfinancial reasons--are some- how kinder and gentler in the way they structure deals. While it may be true American Management Association