(An initiative of eHealth Technology Business Incubator,
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BlueSkyAngels has initiated a series of "ThinkCamps" that connects the start-up community to Angels. Often the Angels are accomplished serial entrepreneurs themselves and/or high net-worth individuals and there is a direct co-relation between such funded entities to their ability to receive follow-on funding.
ThinkCamps are conducted regularly on weekend, mostly on a Second Saturday. Very often they are conducted to suit the schedule of an accomplished entrepreneur. These camps provide an ideal platform for Angels and start-ups to connect.The angels then decide whether to conduct further due diligence and ultimately whether to invest in some of these deals as subgroups of members. Similar to venture capitalists, angel groups often adopt a very hands-on role in the deals they invest in and provide entrepreneurs with advice and contacts.
Based on the success of this event, such events are now being planned across the county, with a team of lead Angels also helping and setting up such network in other locations and also sharing their experience with fellow angels.
Our experience has proven that ventures that are funded by two successful angel groups experience superior outcomes to those that are rejected: These entities have improved survival, exits, employment levels, patenting, web traffic, and financing.
One of the central and more enduring questions in the entrepreneurial finance is to what extent early-stage financiers such as angels or venture funds have a real impact on the firms in which they invest. An extensive theoretical literature suggests the combination of intensive monitoring, provision of value added services, and powerful control rights in these types of deals should alleviate agency problems between entrepreneurs and institutional investors. This bundle of inputs, it is argued, leads to improved governance and operations in portfolio firms, lower capital constraints, and ultimately stronger firm growth and performance.
It may therefore be reasonable to conclude the positive effect of angel financing on most operations of the venture, with qualitative support for a higher likelihood of successful exits. On the other hand, there is no difference in access to additional financing around the discontinuity. This might suggest that financing is not a central input of angel groups.
Angel investors have received much less attention than venture capitalists, despite the fact that some estimates suggest that these investors are as important for high-potential start-up investments as venture capital firms. Angel investors are increasingly structured as semi-formal networks of high-net-worth individuals, often former entrepreneurs themselves, who meet in regular intervals (often over a monthly breakfast or dinner) to hear aspiring entrepreneurs pitch their business plans. .
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