Why can't I see the Angels (nothing paranormal)

Julian Ellison from Tablane posted what Conor O'Neill calls the "best summary of startup funding, finance and the Irish economy I have ever read". Agreed.

Then Fergus Burns of Nooked asked the million dollar question - Angels.... where are you? I previously edited the BarCampIreland wiki to propose a talk on 'Angel Investor networks and visibility' so I readily echo Fergus' enquiry. Let's pin this one down at 'the camp' lads.


Technorati Tags: angel, funding, entrepreneurship, ireland

Comments

[Eoghan McCabe]

Well maybe don't pin them down. Sounds a little rough and you'd probably scare them away.

[James Corbett]

Er... I mean to say let's pin the problem down Eoghan... not the Angels! :)

[keith bohanna]

They live in different places. And buy helicopters, not cars :-)

And may very well be extremely risk adverse - especially with things they do not know. And given that the majority of recent wealth has been generated in non-tech sectors they do not usually "know" technology.

It will be a good subject of debate.

keith

[Conor O'Neill]

One problem is that they are not reading this blog, or mine, or even Damien's, they don't know what blogs are.

They invest in what they know and that makes total sense. It strikes me that the problem may actually be us not them. Why should they look for new investment avenues if the current ones are working ok?

I think the BAP is just the first step in a long process of raising the profile of innovators to the the non-tech world. But it is also up to the people with ideas to advertise themselves by whatever means possible and make themselves attractive to investors. I don't know what those "means" are but surely that is the challenge?

I don't believe that strong angel activity is going to happen here until a steady stream of exciting Irish tech exits occur because exit is the only thing any investor is interested in.

We need 10 x Stockbytes a year and then the investors will be beating a path to your door.

[Conor O'Neill]

Actually, I was talking to someone in this area today and he pointed out that most investors absolutely do not want visibility or profile.

That is why agencies/services like the BAP are so important - they can provide that initial filter and give the investors the distance they need.

[Julian Ellison]

'The fault, dear Brutus, is in ourselves, that we are underlings' Discuss.

We need to create compelling business propositions.
We need to make friends with rich people.
We need to generate revenues (sounds old fashioned, I know)
We need to sell the companies for amounts that make other rich people want to be friends with us.

Shouldn't be too hard.

[James Corbett]

Wow, I'm gobsmacked Conor. Is it how they're afraid of getting begging letters? How can we explain the difference between that attitude and the attitude of VCs like Rick Segal who are going on world tours and begging to meet entrepreneurs - http://www.tomrafteryit.net/rick-and-shel-want-to-meet-you/

I'm truly baffled! But good points Conor and Julian about the fault being with ourselves. I agree and that's why we need a grassroots effort to improve visibility (of those that want to be seen) and networking. As well as building great companies of course!

[Conor O'Neill]

Yeah, the point that was made to me was that these guys don't want to be bombarded. And to be honest, I can see their point of view. Also, if they are not technical, how are they going to know what is genius and what is nonsense?

Remember tho, that there is a big difference between individuals who have made money somewhere and like to quietly invest in things that interest them compared to people like Rick who is a VC and needs a constant flow of ideas past his door so that he can uncover the odd gem which keeps him in business.

[Fergus Burns]

Great debate going on here - with all comments valid in certain cases.

One the key problems in Ireland Inc is the "ecosystem" - the politicans and others talk this up, but to be blunt we don't have one that stacks up against US/Israel/etc.

Questions -
how many "exited" entrepreneurs are active angels ?
how many legal firms introduce entrepreneurs to angels/vc?
how many VCs have you seen at entrepreneur events ?
how many people are leaving "corporate" world to start new businesses ? how much press did the large internet exits (stockphoto/needahotel) get versus the likes of Singularity/Norkom ?

In summary, the investment business in Ireland is ran by Accountants, the tech angel scene is "backroom" bar stuff, the number of startups from large corporates is dismal, the number of wealthy tech people participating in tech community is feck all[too busy managing property portfolios], and the majority of folks in Ireland are living in the old tech world.... and so the circle goes on.

Julian is right - greed is the only way to drive the ecosystem... we need more success stories !!

[Damien]

this gives you some hard stats on the subject -
(from (www.emigrant.ie)

Enterprise Ireland launches Seed and Venture Capital Report 2005

According to the Enterprise Ireland Seed and Venture Capital Report, launched last week, last year saw increases in the level of investment by the Irish venture capital sector, with a total sum of €50m invested by the Enterprise Ireland Partnership Funds. This follows what is described as "a period of consolidation in recent years". Since 2001, total monies invested by the Partnership Funds came to €183m, spread across 99 companies. Some 83% of capital invested was directed at start-up companies. Companies outside Dublin accounted for 35.2% of the total by value.

Welcoming the publication of the report, Minister for Enterprise, Trade and Employment Mícheál Martin indicated that these achievements will serve as foundations for the roll-out of the Seed and Venture Capital Scheme, 2007-2012. "Enterprise Ireland will invest €175m", he explained, "and together with private sector investments this will generate total funding of €1bn in start-up, early stage and development-stage businesses going forward".

[Julian Ellison]

Picking up on this report -- the detail says:

http://www.entemp.ie/press/2006/20060725b.htm

Highlights to the end of 2005 were as follows:

• The total sum invested by Enterprise Ireland Partnership Funds in 2005 was €50m
• 98 investments were completed in total in 2005
• The total monies invested since 2001 by the Partnership Funds totalled €183m
• Since the establishment of the Scheme 83 per cent of total capital invested was directed at start-up companies
• 17.73 per cent and 61.06 percent of the cumulative investments by value to December 2005 were in the life sciences and software sectors respectively
• 16.25 per cent of the cumulative investments by value to December 2005 were in the communications sector
Companies in the regions (outside of Dublin city and county) accounted for 35.2 per cent of the total invested cumulative to 2005 (percentage by value)
• 2005 saw the continuing trend of increases in the amount of Follow-on investments by venture capitalists

[keith bohanna]

Good debate here - thanks.

In my time of working the Angel circuit it became obvious that they do not need publicity. Even the most withdrawn/unknown private investors receive a constant stream of proposals through their established networks.

It is the job of the entrepreneur to penetrate those networks - and preferably through first hand introductions. It is not the job of the investor to go touting - usually. VC's being the exception as it is their profession. Which is a point made by others here as well :-)

keith