The application process opened on May 1. All high- and low-tech early stage, as well as expansion stage, companies seeking up to $3 million in capital are encouraged to apply to participate. The application deadline is August 1, 2011. All companies seeking angel funding or investor mentors should submit a business proposal online at: http://www.angelventureforum.com/id20.html and click Submit Application.AVF-D.C. features five months of education and training programs for every applicant that applies. There are no membership fees – only a $150 application fee for companies is required, which includes unlimited access to all AVF education and training sessions, as well as direct feedback from experienced investors. The program formally kicks off July 12, with the AVF Academy, a day-long education, training and networking session that prepares entrepreneurs on how to most effectively find and work with angel investors. The program culminates with a select number of companies presenting their business plans to accredited private investors on October 18 at the National Press Club in Washington, D.C. Click the following link to view the list of events: http://www.angelventureforum.com/id33.html.
Unique Program
The Angel Venture Forum provides a unique, all-in-one education, networking and training program that screens, prepares and grooms best-of-class entrepreneurs for accredited investors over a five month period prior to the Forum. Fifty semi-finalists will be selected from an expected pool of 150 company applications by a panel of active angel investors after a day of live presentations by the companies on September 8. Ultimately, 30 companies will be selected and groomed to further present their company and to network at the Angel Venture Forum on October 18.
According to Ryan Meinzer, founder and CEO of PlaySay.com, a language learning technology, AVF provided him with real world guidance on how to court investors. “Working with AVF, I learned investors are interested in traction, the product’s appeal, an experienced team and social proof,” says Meinzer. “This helped us to effectively scale with the help of trusted advisors.” The company now employs five people, including programmers and a linguistic specialist, product people and metric specialists. One day this month, PlaySay saw more than 500 users sign up for their service.
Rooted in Success
Valerie Gaydos, angel investor, founder of Capital Growth, and former Director of the Baltimore Technology Council, ran the Angel Venture Fair in Philadelphia (no affiliation) for the past six years, making it one of the most prolific angel venture networking programs on the East Coast. Since its founding in 1998, more than $30 million has been raised by emerging growth companies in first round and follow-on capital.
When asked about her change in venue from Philadelphia to D.C., Gaydos said she was approached by several colleagues in the angel community about bringing her network to Washington D.C. “It became apparent that nothing like this exists in the greater Washington, D.C. market,” says Gaydos. “There is a robust entrepreneurial ecosystem, many active angel investors groups, several private investors and many valuable supporting organizations, but there is no organization with the scale and scope of resources to bring many of these interest groups together in one place in this sort of way. We simply wanted to bring the value of our existing regional networks to D.C. so that we may connect strong companies with financial and experiential resources, attract more capital and generate positive results.”
Robert Miller, Chairman and Managing Partner of Flash Forward Ventures and member of the boards of several organizations including Geostellar and 20twenty Strategic Consulting, says both entrepreneurs and investors will be rewarded. He points out that upwards of 78 percent of the companies that had presented at past AVF events have gone on to raise capital. “We are proud of that and the fact that we have such a great group of active investors who are part of the selection process,” said Miller.
Treating Entrepreneurs with Respect
Growing a start-up into a scalable business takes time, money and resources. While the Internet provides access to a wealth of information, experts who have grown successful companies point out that access to and engagement with professionals who have the experience and expertise to scale a business is critical.
Lenard J. Harac, PhD, a partner of the Angel Venture Forum, and a consultant who shows small businesses how to build successful enterprises, says the value of this program extends well beyond a financial investment, “There is no shortage of organizations and events designed to help start-ups,” says Harac. “What sets the Angel Venture Forum apart is we provide more than money; We set up entrepreneurs to succeed well after the event ends. We stay with them to make introductions to advisors and strategic partners that not only provide direction, but put the business owner on a glide path for success.” Harac continues, “Entrepreneurs are not necessarily good networkers. We help identify resources to grow their company and stick with them. We don’t leave them at the door.”
Fulfilling a Need
“There is definitely a need in this market,” says Alex Castelli, Principal at the Reznick Group in Vienna, Va. “It is still difficult for a start-up to get bank financing. And in most cases, venture capitalists find these companies too small to take an active interest in.” Castelli points out that entrepreneurs benefit from more than just financing alone. “It’s not just the money; The mentoring by these investors is critical to these companies. Angels are successful entrepreneurs who have been there, done that. They commit themselves to groom and grow these companies who lack the experience.”
“Starting a company is about surviving long enough to be relevant,” says Dean Rutley, a venture capital attorney with Womble Carlyle in Tysons Corner, Va. “Having access to sophisticated, experienced angels who provide insight and advice increases a start-up’s odds of being one of the ‘survivors.’ Net/Net: participation in a holistic event such as Angel Venture Forum, with its five-month long education and investment presentation program, is one of the smartest ways that a start-up entrepreneur can gain access to those angels.” Adds Rutley, “Do the math and it’s easy to see why entrepreneurs should find the AVF an attractive forum to participate in and the reason why Womble Carlyle chose to become a founding sponsor.”
Statistics suggest a regional start-up group could help spur deal making. According to a PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ report, first quarter 2011 data shows investment deals in start-ups in Maryland dropped from 18 to 16, and the amount of investment fell from $89 to $86 million. Deals in the District of Columbia inched up from two to three, but the amount of investment plummeted from $26 to $7 million. One bright spot was Northern Virginia, where transactions increased from 12 to 19 and amount of investment increased from $90 to $102 million.
Gaydos also pointed out that it is a great time to start a company, despite the lingering recession. “While starting a business or going out on your own, especially in a recession, may seem scary and a bit counterintuitive, there is really no better time than the present to take a risk and bet on yourself,” says Gaydos. “Starting a business during a recession, even when credit is so tight, forces a company to be clever, frugal, committed and focused. Recessions encourage entrepreneurs to examine more closely the risks, competition and all possible pitfalls of the new business before starting it, thereby often producing a better business than if credit was free flowing. If the company can survive in tough times, they will thrive in good times.”
For more information about the Angel Venture Forum or to arrange interviews with sponsors, investors and entrepreneurs attending 2011 Angel Venture Forum, please contact Tony DeFazio at DeFazio Communications via email: tony@defaziocommunications.com or via telephone: 484-532-7783.
About the Angel Venture Forum
The Angel Venture Forum D.C. (AVF) is a loose-knit group of active private investors, leaders, entrepreneurs and professionals with a shared vision to encourage the growth of emerging business in the Mid-Atlantic region. The mission is to discover and develop strong companies for the region and to connect them with resources – financial and experiential – provided by angel investors, mentors and resources that will assist companies to be ultimately more successful in the attraction of capital and positive exits. For more information, please visit the AVF website: http://www.angelventureforum.com/index.html, or find them on Facebook, Twitter and LinkedIn.
for Angel Venture Forum
DeFazio Communications, LLC
Tony DeFazio, 484-532-7783
tony@defaziocommunications.com
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