Angelsoft, a New York based company that develops a platform for connecting early-stage investors and entrepreneurs and managing investment deal flow, has released a significant update to its software and is finally opening up its network to VCs next to angel investors.
When the company released version 3.0 last September, the upgrade was centered more about making it easier for early-stage investors to sift through entrepreneur applications, search and rate them, etc.
The new version is called Angelsoft 3.4 and comes with 317 updates (release notes), most of them bug fixes, but also introduces a number of features including a nifty ‘Tripit’ style one that enables users to e-mail in deals to a default e-mail address. The company says that most key features have been added to make it easier for VCs to manage deal flow, but that there was also a lot of improvements for angel investors.
Angelsoft was started in the fall of 2004 by David S. Rose, Chairman of the New York Angels, and Ryan Janssen. The company claims to currently cater to 442 angel groups and VCs, 14,852 investors, with 3,100 startup applications coming in a month. Angelsoft’s public stats show that 1,32% of the applicants ultimately get funded, but also that the activity on the network is definitely picking up.
Can non-US startups apply?
Wannabe,
Angelsoft has investment groups in 43 countries. While the majority are in the US, we do have angels and VC’s in other countries. We suggest you use the Group finder on the home page of Angelsoft to find out how many groups are close to you.
Part of the value of this app is that it gives some credible stats to the public about the likelihood of getting funded. This helps take the guesswork out of the game, and is really valuable in a slower market.
- Curtis
http://ShipItOnTheSide.com – Learn to ship profitable software as a side job.
Id like to know if non US can apply…
Id like to know if non US can apply
———-
http://www.long...talsinspain.net
I assume they can cause when you register it gives you the optipn to choose a country, and also you can apply to diffrent communities and some of them are not from the US so my bet is that you can apply.
AngelSoft blows ass. Don’t waste your money. We posted per their recommendations and essentially got nothing out of it. I think using the Wasila, Alaska phone book would likely be higher yield for an entrepreneur looking for angel investments.
I agree. Lame post from a lame writer: what is next? this guy’s next post would write about pet stores? gas stations? give me a break….
Jay, while it’s unfortunate that your plan didn’t generate a lot of interest, I believe you will find that to be more a reflection of the tough reality of the early stage angel investing world, than it is of Angelsoft per se.
Unlike all of the ‘matching’ or ‘marketing’ web sites that make great claims of getting you funded, Angelsoft is the tool used by real investors to manage their deal flow. With close to 15,000 accredited investors on the platform, Angelsoft has become the near-universal standard for the early stage world, so posting a plan to the Angelsoft Investor Community is certainly giving yourself the best shot at getting funded.
However, it is crucial to understand that it is very, very tough to find an angel investment no matter what you do or how you do it. We publish live statistics from the system, at http://www.ange...ft.net/industry, which show that this past year, 1.32% of applications received funding through Angelsoft. Given that this is actually *higher* than the industry average (and several times higher than the odds of getting venture capital funding), one can see that it is a very competitive market.
About six months ago we wrote a blog post discussing what companies can expect from an Angelsoft posting. Although these figures are slightly out of date because of the growing number of investors on the system (we’ll have updated averages shortly), here’s what we said:
“Right now submissions with a video average 22 views. That is 22 serious investors, likely from multiple groups, who are reading through your application to see if they are interested…submissions without a video average 13 views per deal, which is a 70% decreases from deals with videos.
21% of submissions to the Investor Community receive at least 1 referral into an Angel Group for further funding consideration.”
Because there are so many entrepreneurs seeking financing, angels have many options from which to choose, and all the stars need to align for a funding to come together. That generally means a great entrepreneur, a growing market, a brilliant business concept, a track record of successful execution, a solid management team, a finished (or close to it) product, traction with customers, cash already invested by the entrepreneur and his/her friends and family, and a spot-on presentation (through application, summary, video and business plan) of the opportunity.
Even with all of those pieces together, however, it’s still tough in the current economy to stand out as the 1 in 100 venture that eventually receives funding. As an entrepreneur and an angel myself, having founded six companies and funded 70+, I wish it were easier, but just because it isn’t what we want to hear, doesn’t mean it’s not true.
This comment basically says that entrepreneurs may apply and be rejected because the economy is in bad shape. Why bother with these guys?
Once again, a long “explanation” is not only condescending, but revealing of the true nature of these companies. They care about selling their software, not about entrepreneurs. And the writer of the post is part of the scam… Lame!
Another low quality post from Robin Wauters. He writes for a teenage audience, underestimating *true* smart entrepreneurs everywhere. This article is useless for entrepreneurs.
Once again, the saying proves true: “those who are not capable of doing something of value, write about it” Such as theater or movie critics.
Mallory, whether or not you personally find Angelsoft useful, it’s certainly not a scam. Using the Group Finder to locate an appropriate angel group to is FREE. Using Angelsoft to apply to as many groups as you want is FREE. That’s not a great way for us to make money [grin].
The only thing we charge for is if you want to post your business plan to the global Investor Community and make it available to all 14,852 investors at the same time…and that’s only $250 for 30 days, which is far and away the most cost effective method that exists—anywhere.
As I said before, this is another shameless plug for your company. TC frowns upon comments/plugs posted by visitors, however, they do it all the time, particularly “Hack” Robin Wauters.
Let’s see, $250 / 30 days for a “chance” of being rejected by angel investors [domestic and international, mind you] –Sorry, but I would gladly spend five times as much dealing with a local angel investor. This way I would know whether I [our company] would be rejected before we spend a nickel. There are lots of angel investors everywhere; we have excellent relations with several. Had a private placement two months ago and we have declined three investment offers in the past six months.
This is not for us. On the other, others may try your offer and pay your fee upfront to be rejected later… Pie in the sky.
Wow Mallory, you’ve got to be the most pessimistic person in the world. Just because you have been able to line up local investors doesn’t mean everyone can.
The times are tough, and even if you need to pay out $250 to do it, the opportunity is there for those that may not have an opportunity.
Personally, even though we have some interest already, we’ll probably still give AngelSoft a try in the coming weeks. Why have just one or two interested people, when you can have more? The more you have, the better investment deal that you can get. And frankly that’s all it is about, giving your business the best chance it can at succeeding.
(and no, I am not from AngelSoft, or even know anyone there)
I reiterate my “blows ass” rating on AngelSoft.
Yes, non-US startups can certainly use Angelsoft to coordinate their funding search, because it is the global platform for the world’s early stage investing industry.
As a matter of fact, in addition to being used by majority of all US-based angel investment groups (and an increasing number of VC funds) Angelsoft is the official deal management software for: EBAN (the EU-sponsored organization of all European angel groups), BBAA (the British Business Angel Association), NAO (the National Angel Organization of Canada), AAAI (the Australian Association of Angel Investors), ABAN (the Arab Business Angel Network), and many other groups around the world, from Argentina to China.
You can search for the groups closest to you through the free Group Finder at http://angelsof...-investors.seam.
John,
You may want to use our angel group and VC directory to find investors in your area and apply directly with no cost. Many of our investors are non-US, and some US investors may also invest in non-US companies.
The link is – http://angelsof...-investors.seam
If you find that there are enough groups in your area, you may want to increase your reach by posting to our Investor Community, which is accessible by all groups who use Angelsoft and their members.
What is the practical value of this information for the average US entrepreneur? Sorry, but it seems that it is close to zero.
The post indicates that about 1,32% [should be 1.32% -no comma] of applicants get funded, with “3,100 startup applications coming in a month” apparently from many countries…
I am intrigued about the usefulness of this information. But again, it may be a plug or PR for Angelsoft; it is likely that they would see an increase in the number of applications, and also an increase in the number of rejected applications. As indicated in another comment, this is a lame post.
Daniel, the practical value is that it provides a pretty accurate view of what the world of angel investments is really like. According to the best statistics available, roughly 57,000 companies in the US received angel funding last year. While this is a pretty sizable number (just about the same size as all venture capital funding combined), it is still a very, very challenging process to get funded, and the vast majority of early-stage startups will need to bootstrap themselves, rather than rely on external equity funding.
It is self-evident. The more you try to “explain” it, the less credible you are. Sorry, but you must make an effort and realize that you are addressing a very, very smart and highly educated audience.
The more you “explain” the more condescending you sound… Do you really believe that this is an advantage for you and your company?
Oh! I get it now! This article is advertising for “Angelsoft” — Instead of ads showing on the right side of the screen, they are now embedded in the text!
Way to go Robin… How much did you get paid?
Would you provide TC readers with a list of US companies funded by VCs using your software?
Thank you.
The article says they just opened up the system to VC’s. Why would there be a list?
Please read the company’s info above: they have been in business since 2004. This article refers to a software *upgrade*
The 2009 Women 2.0 Startup Competition uses Angelsoft to manage applications — Deadline to apply through Angelsoft is April 10th, 2009!
good article
I use AngelSoft, as a member of the Houston Angel Network. It is an effective tool for assembling and managing teams of angels who are interesting in a given company. I especially value the visibility the tools gives me into deal flow around the country, as so many local angel groups in the US use the tool.
That said, I think a blind submission to the network, without anyone championing a company, would be pretty unlikely to garner investment. Angels rely a lot on their personal networks, and need to be able to personally evaluate the key people involved in a company.
I have looked into a couple of deals outside my home turf which i saw posted in angelsoft, but it is just hard for me to imagine getting involved with a deal where neither I nor anyone i trust has actually met and personally evaluated the prospect.
One of your members contacted me to say that our Liquid Prana was described on your website. May I see that display? And find out who posted it?
Many thanks,
Dr. Tom Cotter
It is self-evident. The more you try to “explain” it, the less credible you are. Sorry, but you must make an effort and realize that you are addressing a very, very smart and highly educated audience.
Even with all of those pieces together, however, it’s still tough in the current economy to stand out as the 1 in 100 venture that eventually receives funding. As an entrepreneur and an angel myself, having founded six companies and funded 70+, I wish it were easier, but just because it isn’t what we want to hear, doesn’t mean it’s not true.
Oh! I get it now! This article is advertising for “Angelsoft” — Instead of ads showing on the right side of the screen, they are now embedded in the text!
Way to go Robin… How much did you get paid?