A new resource for Seattle Angels comes to Seattle.
John Sechrest is bringing a new kind of Angel event to Seattle. Last night I joined with about 20 other Angel investors to pool our resources (we each contribute $5,000 toward the investment fund) and sponsor a new startup competition in Seattle. While I think it's great that John has created a great new way for startups to get funded, I think the real benefit is for the Seattle Angel community itself.
Other organizations in town do a great job of sourcing companies and providing "deal flow", but I find relatively few opportunities to improve my skills as an Angel investor. The process is very complex to do well. The fact is, most startups will fail. The most successful angels are able to improve their odds by:
- Placing a lot of bets to diversify risk.
- Eliminating startups with the most risk factors.
I think one of the barriers to getting more Angel investors active in Seattle, is that it's pretty hard to get started (not to mention that mistakes can be expensive). But with this new conference format our individual financial risk is minimal, and we get to learn from each other how we analyze prospective companies.
We're going to meet once per week for the next eight weeks to do due dilligence and dig into the business plans of each of the applying companies. I'm really looking forward to the process and learning from and helping other Angels in our group.