The issue is that the funding process is not something that you can start and complete in a matter of days. Angels will have due-diligence to go through and as the industry matures, the entrepreneurs will get more savvy as to what Angel Investors are actually looking for hence the success rate of Angel Soft and Angel Investment Networks in general will improve.

Interesting post. A few comments:

1. We have and continue to build out the Work Flow Management piece for VCs. We have over 25 VCs using the software already, and they can testify as to how much the platform helps. If you’re working with a VC, please contact us to get a demo and see if it might be right for you.

2. I agree that the first place most entrepreneurs should apply is to their local groups. That’s why we provide a group finder and actually encourage that. Often these groups will then post the deal to the Investor Community to complete a round of financing, as it is a little known fact that most groups can’t take on a full round themselves.

3. As to your point about “nationally syndicated” angel deals, your referring to an “old-school” national deal that other “investor networks” have purported to do. They are indeed worthless. Ours are deals lead by a local group who can keep an eye on the entrepreneur, with national and international money (and specific expertise) brought in. It really is the best of both worlds.

4. Finally, if I were an entrepreneur and KNEW I had the goods, I would absolutely post to the Investor Community first. Good companies get moderated up by the community and these hot companies have the opportunity to define appropriately favorable terms because there is legitimate and transparent competition. That’s something that has never existed for entrepreneurs before.

Ryan Janssen
COO, Angelsoft

We provide a very clear standard for what makes a company fundable. It is the common application that all 400 groups use to evaluate companies. An entrepreneur should be able to fill out every section of that application flawlessly. If that is difficult, there is a very good chance that the business is not ready for funding.

In terms of doing your homework on the groups you apply to, yes, that is a highly recommend step of the funding process. We have made that process easier for you by bringing the groups together in a searchable format, and giving you a common application to apply to them. Picking the right group to apply to is still up to the entrepreneur.

Jason Schwartz
Angelsoft Community Manager

We’ve also got some posts on our blog about what a “fundable” deal is. Aka, scalable business, execution rather than just an idea, etc. Definitely check these out before applying to the Angelsoft Community.

@Damon is spot on. In the scheme of things there are a ton of ideas out there, and very few get funded. You can increase your chances greatly by learning more about your investors, and what types of investments they like to make.

Knowing that you are an appropriate candidate for venture funding, and that you have a fundable idea is really a big part of the equation.

Better than 1% is really not too bad when you consider that any hack with an idea can ask for money. The percentage of qualified companies that get money is much higher. (These are the ones who know that investors need an exit, can show a competitive advantage, understand term sheets and the current investment market, can show steady progress, and are asking for money at the appropriate time.)

I used angel soft in March – slow and auto save crashes
I used angel soft today- slow and auto save crashes

Very annoying!

Simon
http://www.type...cle-of-six.com/

Let me know where you’re having the question, and we’ll get it straightened out.

I’m with Angelsoft, and do Biz Dev on the west coast on the investor side of things.

Cheers,

Evan