The Great Startup Game

How to Finance Your Startup in a Depression

Where do you rank on the entrepreneurial scale of 1 to 10? Find out.

If you are trying to finance your startup in today's depressed economy, I feel your pain.

It's tough out there. Even the Venture Capitalists are seeing their money supply reduced dramatically. Angel investors aren't as liquid as they used to be.

With all the cash taps basically shut off where do you find startup capital for your business?

As the economic news becomes bleaker by the day and the word "depression" no longer feels like hyperbole, it's time for entrepreneurs to hunker down and become very realistic about how they will finance their startups. The days of writing a business plan, traipsing into an investor's office, and dropping off a copy are over. Indeed here at the opening of 2009, we are in a situation which is the exact opposite of 1999 when there was loads of capital available to fund even the silliest of ideas. Back then it seemed as if at least half the workforce was walking around with a stack of business plans under their arms knocking on venture capital firms' doors.

Well, not anymore.

Only the tough and financially savvy will be able to cobble together the financing that their startups need to launch and survive in this economy. This is not an economy for wannabes.

With this reality in mind, I am starting up a new newsletter which will cover startup financing lessons for a depression or deep recession.

You can subscribe for free here: Subscribe Me to Startup Financing

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Advice from Dragon's Den Doug Richard - 6 Rules for Startups

Short, concise yet meaty advice.

Free Marketing Course: Jay Abraham Part 1

This is the 1st of a 5 part talk by Jay Abraham on marketing. Feel free to miss the 3.5 minute intro by T Harv Eker.

Free Marketing Course: Jay Abraham Part 2

This is part 2 of Jay Abraham's free marketing talk.

Free Marketing Course: Jay Abraham Part 3

This is part 3 of the free Jay Abraham marketing talk.

Free Marketing Course: Jay Abraham Part 4

This is part 4 of the free Jay Abraham marketing talk.

Free Marketing Course: Jay Abraham Part 5

This is part 5 of the free Jay Abraham marketing talk.

Angel Investors: Washington State

This angel investor blog emanates from the Great Pacific Northwest, specifically Washington State.

The blogger is an experienced entrepreneur and angel investor who shares his experiences and lessons with entrepreneurs.

Find out more about this Washington angel investor blog.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Alaska InvestNET

Alaska has its own angel investor network, InvestNet, in Anchorage.

Alaska InvestNet strives to create a world-class private equity and entrepreneurial environment in Alaska.  We attract, educate and connect entrepreneurs, angel investors, service providers and venture capitalists.  Together, we work to energize Alaska’s economy by enhancing the number and quality of early-stage equity investments in local companies, creating wealth for investors and jobs for Alaskans. 

In an effort to strengthen Alaska’s startup economy, AIN is committed to the following goals:

• Deliver effective, high-quality private equity education programs for both entrepreneurs and investors;
• Coach and mentor top-tier entrepreneurs seeking risk capital;
• Provide a structured forum for start-up companies to present their business opportunities to early-stage investors;
• Increase the number of angel networks and angel investors throughout the state, providing organizational support, professional guidelines and investment opportunities;
• Partner with organizations statewide to build infrastructure that attracts and generates better investment opportunities throughout Alaska.

You can contact this Alaska angel investor network.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: How Angel Investors Should Look for Deals

How to get into quality deal flow as an angel investor.
How to be an angel investor

This is worth watching because it helps you to understand how angel investors operate, network, and find deals.

Angel Investors: Funding Universe (Utah)

Angel investor network Funding Universe invests in Utah startups.

At FundingUniverse, we are in the process of doing an intense research study on the current Utah angel investment market.  We are partnering with the heads of each of the angel groups to gather the information.  Here is a quick teaser on more information to come:

• 93 Utah investors surveyed
• 49 investors said that they are still actively investing (52.69%)
• 2 investors said that they were syndicating deals, but not leading any new ones (2.15%)
• 21 investors said they are no longer investing (22.58%)
• 21 investors said that they are not making any investments outside their current portfolio (22.58%)

I have spoken to several people about this survey and have received drastically different responses. One of the questions that I have is:  given the current state of the economy, are those statistics more optimistic or less optimistic that you had expected?

Contact Brock Blake of the angel investors network Funding Universe.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Micro Funding

Angel Investors microFunding brings together investors, managers, and inventors.

microFunding is a wholly new way to help fund great business ideas. It really increases the chances of finding money for an idea, and making it into a serious business success. The rewards are based upon the well proven formula of at least ‘30 for the inventor, 30 for the investor and 30 for the management’.

Inventors are motivated to share their ideas securely and confidentially

Managers are motivated to put their time and reputation behind only great ideas with a real chance of succeeding, and his rewards arrive only on a profitable exit – and the sooner the better for everyone!

Investors are motivated to invest in ideas backed by experienced managers offering a lower risk/reward ratio.

Contact angel investors microFunding.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Common Angels

Common Angels is another group of angel investors you can contact with questions about funding for your startup.

Contact angel investors Common Angels.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: My Virtual Angel

Angel Investors: My Virtual Angel is operated by angel investor Karen Rands.

Karen Rands got involved in the world of angel investing in 2001.   She left corporate world to join one of her clients as their VP and to help them raise their last bit of go-to-market capital. 

As Karen Rands got more involved in the world of angel investing, she had requests from high net-worth men and women and their money managers to recommend training so they could learn How to be an Angel Investor.   There was plenty of training options for public stock market investing and real estate investing, but nothing for private equity investing. 

Contact angel investor Karen Rands.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Ask the Angels (Pasadena Angels)

Ask the Angels is a Pasadena, CA based group of angel investors.

Since our start in late 2000, we’ve made a concerted effort to actively interact and work with entrepreneurs and start-up companies in Southern California. Most of this interaction has been through companies going through our funding process, or individually meeting people through local events and conferences such as LA County Tech Week, VentureNet, or the Tech Coast Venture Network monthly programs. In early 2008 we started Ask the Angels to give entrepreneurs a forum to interact with our individual members and to ask questions related to start-up companies and fundraising. As our organization has grown, we have received an increasing stream of questions from local entrepreneurs on a wide range of topics, including fundraising, company formation, legal matters and marketing. Rather than address these individually, we’ve decided to answer them through a public forum so that more entrepreneurs can benefit.

Contact the Pasadena Angel Investors.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Angel's Den

Angel investor Bill Morrow runs the Angel's Den.

Angels Den is changing the way business owners find suitable investment opportunities. It is all about gathering together the latest and greatest business ideas in one place and presenting them to people serious about making equity investments in a user-friendly way. It aims to remove the stuffiness, ego and mystique surrounding angel funding, and get on with the job of matching brilliant business ideas to investors quickly and simply.

It is as risk free as it gets, a payment is made by the entrepreneur for £99, which then means that a summary of their proposed business is posted on the site for Business Angels to see. Unlike other investment websites, Angel's Den offers secure viewing for Angels who have signed up for the site, which means that only true investors are looking at the opportunities on there and ideas can remain the intellectual property of the entrepreneur, until a business partnership is made.

Entrepreneurs have access to over 1,700 Angels on the site, many of which act on behalf of other angels, so the true number runs into the 4000's.

On Christmas Day 2007, there were 207 Angels looking for deals to invest in. Searches for businesses are done so by sector so that the 'pitches' on the site are hitting the relevant investor making success rate higher.

Contact angel investor Bill Morrow.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investor Bill Payne on a Startup's Biggest Challenge

Angel investor Bill Payne, Entrepreneur in Residence at The Kaufman Foundation, says that most start-ups fail due to a lack of execution. This short talks covers the differences between angel investors and venture capitalists.

The Smart Startup Guide teaches you the startup financing lessons of the 500 Fastest Growing Companies List entrepreneurs.

Angel Investors: New Zealand

New Zealand Angel Investors

Are you a New Zealand startup looking for angel investment, business experience and contacts? This site is an ideas exchange where angel investors can find out about hot opportunities in the market. If your business is looking for angel investment, then drop me a line so we can get your story out to the world.

Are you a New Zealand angel investor looking for potential investments where you can add value and make a real difference?

Contact New Zealand Angel Investors.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Brant Bukowsky's Angel Journal

Angel Investor Brant Bukowsky

My name is Brant Bukowsky. I am in Columbia, MO and have started this blog to help educate entrepreneurs and investors about Angel Investing. The goal is to keep you updated on trends in the industry as well as help educate you on investment options and Angel Investing in general.

I am a member of two angel investment networks. I prefer to invest in companies for which I can add value. My main area of expertise is in online marketing, especially search engine marketing.

The blog will mainly include links and discussions about other great posts on related topics from people much smarter than me.

Contact angel investor Brant Bukowsky.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: Tom Keane

Angel investor Tom Keane's Startups & Angels

Tim Keane is the current Entrepreneur in Residence at Marquette University, in the College of Business Administration.

In Fall 2007, he was named Director of the Kohler Center for Entrepreneurship, a cross campus initiative of Marquette University.

He founded and sold a CRM company, Retail Target Marketing Systems, Inc., before which he worked for GE Healthcare in Milwaukee. He has invested in a wide range of private companies and sits on a number of company boards.

He is interested in active angel investing and advising, especially in the Phoenix area, as well as in "visiting" engagements at institutions of higher learning.

Contact angel investor Tom Keane.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.

Angel Investors: The Angle Angle

The Angel Angel is associated with the Seattle-based Alliance of angels.

The Alliance of Angels is the Pacific Northwest's premier non-profit angel investment organization, comprising of more than 100 accredited investors and representatives of investment firms who invest in early-stage companies in technology and other high-growth sectors.

A program of the Technology Alliance, AoA represents the Northwest's most experienced and best-networked private investors and supports the growth of young companies by facilitating more efficient access to capital and advancing entrepreneur and investor education.

Contact angel investor The Angle Angle.

Just remember that all investors want to back concepts with real traction, not just an idea presented in a business plan. Learn How to Close Deals With Angel Investors.