by Justin Fishner-Wolfson
In the current environment, the way to raise capital has changed with greater numbers of angel investors and more competition among venture capitalists. Today, entrepreneurs are faced with more and more options, which means more decisions. Taking money is like getting married; your investors are your partners. Pick investors as carefully as you would a co-founder. Entrepreneurs should do diligence on their investors and find out if they will be there when times are tough. Understand how to differentiate between investors and determine the right number of investors for your seed round. Learn the difference between angels, super angels and venture capitalists. Ensure that your investor's incentives are aligned with yours so that they help make your company the next big thing. Understand the market and what is a “good” valuation and what are “standard” terms. Figure out how to create a syndicate that positions your company to succeed. Come armed with your questions on anything from basic investment and venture capital terminology to decisions you’re trying to make to help your company grow.
[Session will be presented in ENGLISH. Sesión será presentada en INGLÉS - Redes Angeles en Latino America: Evolucion y Oportunidades Futuras. SXSW Latin America programming hashtag: #sxswLatAm] Latin America has never been considered a “hotbed” for venture capital. Yet as the technology entrepreneurial world continues to assess and recognize that Angels are really the investors responsible for the vast majority of Tech Startup successes, then the Latin American story becomes more relevant. Ever since “Angel networks” began to formalize themselves as such across the region only a decade ago, their growth and popularity has shot exponentially. Suddenly, Latin Americans involved in Technology and Entrepreneurship have realized that the funding mechanism for startups has actually been the “Angel model” in the vast majority of enterprises throughout its history. These transactions just happened to take place within closer circles of trust and the investors just weren’t called Angels.
This panel briefly explains the historical perspective that led to this late recognition of the term “Angel Investor” and then dives deeply into the tremendous growth, resources and future opportunities that lie in the majority of the 20+ markets that make up “Latin” America.
Panelists will be comprised of current leaders and members from Latin American Angel Networks, and will be moderated by a High Tech Entrepreneur who has been funded by Angels in both Latin America and the United States.
11th–15th March 2011