Gotham Gal: The rise of Angel Investing

There are probably a variety of reasons on why there has been such a rise in angel investing over the past decade. More than likely the affluence across the globe and the desire for those individuals to diversify their assets. Putting money away in more traditional risk adverse areas is not giving investors the returns that they got in the past. Also, doesn't everyone want to be part of the start-up nation?

I am seeing a significant change in the power of the angel investor over the past year. There are many businesses that I have invested in that are going out to get their next round of financing. These are businesses with traction, engagement and revenues. They are not having the easiest time getting VC's to lead the deals. Why? Maybe they don't see those businesses are multi-billion dollar businessees, maybe they don't believe the entrepreneur will stick it out to get big, maybe maybe maybe. I don't know the answer but I am finding we don't necessarily need the lead VC.

What I do know is that I am seeing these entrepreneurs raise $1-2 million from angels, super angels, original investors putting money back in and they can close their round without a lead. I know because I am leading these deals. I am not leading them financially but because I am intimately involved with the company and I believe that this next round of financing is the key to the next step in growth, I am putting together the documents and setting a price. I am pretty sure that these companies will either never have to raise more money or have zero problem raising money at the next turn.

As more successful entrepreneurs who have cashed out, more people who have a desire to invest in start-ups that they understand and can make an impact in, more women (PLEASE!) get into this game, I believe I will be doing more leads on the Series A and others will to.

Angel investing is changing and that is giving more companies the ability to grow because angel investors are happy with a $50m exit or even getting paid dividends on a business of that size and VC's are not.

companies I have invested in

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books of the moment

Peggy Riley: Amity & Sorrow: A Novel
A mother drives for days with her daughters and ends up in a random Oklahoma town after crashing the car. They come from a polygamous community where there were 50 wives. The mother had grown up knowing life outside that community. Over time, after leaving, she almost becomes deprogrammed. The realization of what she did to her daughters who no nothing outside the world they came from including how to read. Then there is the family that brought them in. It is a fascinating story. Well written. Worthy read.
Charles Graeber: The Good Nurse: A True Story of Medicine, Madness, and Murder
An amazing true story of a male nurse who was arrested in 2002. I actually remember the story as I followed it in the papers. This nurse was a serial killer who had probably murdered over 400 patients that were under his care. A seriously well researched book. Great read.
Meg Wolitzer: The Interestings: A Novel
Wolitzer writes about a group of camp friends who all come from different walks of life (some on scholarship) as their friendships continue through their mid-50s. At the beginning the story seems trite but as you continue to read there is a lot of be said. The story is sticking with me. She makes the case that everything that happens to you from your childhood makes an impact on who you become or don't become. Worthy read.
Elizabeth Strout: The Burgess Boys: A Novel
Strouts last book won a Pulitzer. She focuses on family issues. I enjoyed this book much more than Olive Ketteredge which I found utterly depressing. This book follows two brothers and a sister who live in the shadow of their fathers accidental death. Like most siblings, all have turned out very different yet they are connected. I did not love any of the characters, like her last book, yet as The Burgess Boys moves forward and memories are revealed, it is an interesting perspective on human character.
Tamara Shopsin: Mumbai New York Scranton: A Memoir
Great book. A witty spare inventive personal diary of Tamara journey from Indian to New York to Scranton. Really really enjoyed the book.
Michael Lavigne: The Wanting: A Novel
An incredible book that tells the human side of the many layered issues in the Middle East. From immigrating to Israel from Moscow, to being a victim of a suicide bomber yet surviving, to being pulled into an Israeli radical group. Each character is connected. Very layered well written book. Powerful
Alessandro Piol: Tech and the City: The Making of New York's Startup Community
A history of the Internet that I lived through. Great job of recording what happened.
Amity Gaige: Schroder: A Novel
Not sure how much I loved this book. A father loses his child in divorce and decides to kidnap his own daughter. He is not a stable person but he obviously loves his daughter. His own childhood has made him a disconnected human being. An interesting journey but not sure I'd recommend.
Ernest Hemingway: The Old Man and the Sea
Classic.
Janice Steinberg: The Tin Horse: A Novel
a good novel that not only tells the tale of another dysfunctional jewish family in the early 30's but interweaves pieces of los angeles history throughout the book.

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The rise of Angel Investing

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companies I have invested in

books of the moment