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Angel Capital Association Guidelines on Fees for Applications and Presentations

2 points by skmurphy 18y ago

pg 18y ago
What they don't get is that there are a lot of startups for which several hundred dollars is not a nominal charge.
- cperciva 18y ago
  I'd say that once you get to the point of considering $500 to be a nominal cost, you're not really a startup any more.
- netcan 18y ago
  If we assume that the majority of these are not simply trying to make a buck from 'nominal fees,' maybe they're using it as a sort of screening process. I assume that even a $400 charge would have a major effect on what applicants end up presenting. Theoretically, you could argue that it keeps away anyone that doesn't believe she's got a reasonable chance of getting funded. I believe it will keep away many idea only "startups" that don't have any real substance behind them. It would also keep away those just practising or testing the waters. Again theoretically, it is not even necessarily a problem if it keeps away perfectly good presentations. If they get can get more presentations then they can hear, it's ok to lose some good ones as long as your mean quality rises. What throws a spanner in the mix is what startups (especially those that see $500 as a hit) think of those groups that charge them. I have no idea what the reality is. But the tone on HN always seems to suggest that this is an option for the naive, inexperienced & clueless. That's certainly not the image they should want to project. Again speaking with no experience, that makes some sense. Even taking the above assumption (they're not just hearing presentations for a profit) you'd be thinking that if they do need such crude screening device, they'r unlikely to be funding a very high percentage.
- skmurphy 18y ago
  I posted it so that entrepreneurs would understand that fees in excess of this range are clearly out of line. You have to draw a line somewhere. The reputable Silicon Valley Angel groups I am familiar with don't charge for you to present (e.g Angels Forum, Band of Angels) but there is a screening process.
jacquesm 18y ago
any angel investor that starts with charging for presentations is going to miss out on a lot of information. I think that a start-up presenting to an angel investor teaches both parties something and should be done on neutral ground, so no money should change hands until an investment is agreed upon. Personally I've never seen a successful angel investor that charges to be presented to, I'd like to hear otherwise if you have a counterexample. The only situation that I've seen money change hands before an investment is when the 'angel' gets hired as a consultant and then later becomes an investor.

2 points by skmurphy 18y ago

pg 18y ago

What they don't get is that there are a lot of startups for which several hundred dollars is not a nominal charge.

cperciva 18y ago
I'd say that once you get to the point of considering $500 to be a nominal cost, you're not really a startup any more.
netcan 18y ago
If we assume that the majority of these are not simply trying to make a buck from 'nominal fees,' maybe they're using it as a sort of screening process. I assume that even a $400 charge would have a major effect on what applicants end up presenting. Theoretically, you could argue that it keeps away anyone that doesn't believe she's got a reasonable chance of getting funded. I believe it will keep away many idea only "startups" that don't have any real substance behind them. It would also keep away those just practising or testing the waters. Again theoretically, it is not even necessarily a problem if it keeps away perfectly good presentations. If they get can get more presentations then they can hear, it's ok to lose some good ones as long as your mean quality rises. What throws a spanner in the mix is what startups (especially those that see $500 as a hit) think of those groups that charge them. I have no idea what the reality is. But the tone on HN always seems to suggest that this is an option for the naive, inexperienced & clueless. That's certainly not the image they should want to project. Again speaking with no experience, that makes some sense. Even taking the above assumption (they're not just hearing presentations for a profit) you'd be thinking that if they do need such crude screening device, they'r unlikely to be funding a very high percentage.
skmurphy 18y ago
I posted it so that entrepreneurs would understand that fees in excess of this range are clearly out of line. You have to draw a line somewhere. The reputable Silicon Valley Angel groups I am familiar with don't charge for you to present (e.g Angels Forum, Band of Angels) but there is a screening process.

jacquesm 18y ago

any angel investor that starts with charging for presentations is going to miss out on a lot of information. I think that a start-up presenting to an angel investor teaches both parties something and should be done on neutral ground, so no money should change hands until an investment is agreed upon. Personally I've never seen a successful angel investor that charges to be presented to, I'd like to hear otherwise if you have a counterexample. The only situation that I've seen money change hands before an investment is when the 'angel' gets hired as a consultant and then later becomes an investor.