Posted tagged ‘angel investor’

Angel Investors say, “Out with the Old, in with the New.”

November 20, 2008

In 2007 the angel investment market experienced a growth in investment activity, according to the Center for Venture Research. However, it is noted that angel investors are taking a more cautious approach to investing. But a cautious approach does not necessarily mean that investors are not looking for the “new.” According to the CVR, investors have a preference for new rather than follow-on investments.

So when Bruce Johnson released Semanti, a search tool that sets on top of Google to enhance and personalize the searching process, angel investors took notice. It was the dream angel investor scenario. After all, larger corporations such as Google are already a favorite of angels by providing them with a sense of stability. And Semanti brought out the new that so many angels are seeking. But what does new really mean?

It has been common in the past for angel investors to remain fairly close to their investments in order to maintain a hands on approach in the decision making process. But with all the innovations coming out of Edmonton, angels are beginning to realize that being close to their investment is nothing more than an “old” theory that now no longer applies.

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Good time to be an angel investor?

November 19, 2008

With the obviously weak economy, I wonder what angel investors are thinking right now. Is it really a great time to start a business and invest in speculative ventures?

You’d think that right now would be a great time to be an angel investor. Layoffs and a bad economy spur creativity in many ways, even just for survival. There’s a growing pool of creative people out there that now have some free time to be able to work on their ideas. That’s not necessarily a positive thing from one perspective, but opportunity grows from adversity.

From an angel investor perspective, you don’t want to be putting money in at the top of the economic cycle, if you can help it. It’s better to invest at the bottom to be able to maximize your returns.

Yes, it is a good time to be an angel investor

It’s a timely subject, as it’s Global Entrepreneurship Week and according to this article it would seem that being a startup right now is a good thing. There are more employees available and better quality candidates. Looking at the economic side of things, it’s better because there’s less emphasis on high wages, people are willing to work for equity and basic expenses like rent are more affordable too.

The credit crunch has tightened credit up to the point where even established businesses are having trouble getting the funding they need, as witnessed by Linens ‘n Things and Circuit City.

While that may be the case, if you’ve got a solid business model, good management and have the groundwork in place, you might be able to find the right angel investor to come along. By the time we’re out of the woods on this recession, you could be well placed to profit from the next upswing in the economy. It feels like the end of the world now, it always does, but it always rebounds.

Edmonton angel investment

Edmonton is a good place for angel investors to be looking for their next deal. Many of them already are, from what I’ve heard. The Edmonton tech community is active and creative. Perhaps some people write off Alberta as all oil and gas, but there is a lot of creativity in the Edmonton tech community and they’re not just working for the oilfields.

Edmonton might not be Sand Hill Road, but it could be the Sand Hill Road of the future. The city has a lot going for it. The University of Alberta is a life sciences sector leader and it seems like there are important life sciences discoveries announced there every week.

NAIT (Northern Alberta Institute of Technology) is a leader in the tech education community, turning out highly skilled grads in a number of fields. NAIT grads are certainly out there shaking up the world.

While the rest of the world’s economy is weak, Alberta still has a strong economy and has good prospects to weather the recession well.

If you’re looking for a pool of creative talent in a vibrant and successful city, Edmonton might just be the right place to start your next venture or find your next angel investment deal.