It’s that time of year again. Yes, the time of year when I start trying to write headlines based on obscure references to classic holiday movies.
But, it’s also time for the Oregon Entrepreneurs Network (OEN) to open submissions for Angel Oregon, the annual competition that lands one lucky startup a chunk of Angel funding.
Angel Oregon 2008 is coming and it’s bigger than ever! Applications are being accepted now through Jan. 11, 2008. We invite companies to compete for $300K in investment prizes, awarded in three distinct investment tracks. A Grand Prize Winner will walk away with $150K, with two runners-up receiving $75K each [contingent on Angel Oregon hitting its recruitment goals].
Angel Oregon is a program of Oregon Entrepreneurs Network (OEN) and is the nation’s premier matchmaking event. Angel Oregon focuses on bringing together Oregon and SW Washington’s brightest entrepreneurial talent with qualified Angel investors. Last years Angel Oregon event was perhaps the most successful ever with the top company, M-Six, walking away with $230k. For more information or to apply, visit Angel Oregon.
great info, Ryan…thanks for the insight.
That does make sense…guess I was too narrow minded. What would be interesting though is talking to last years winner to see if they have been required to make those monthly loan payments as the Terms spell out. If so, was the money worth it?
I feel a hot story brewing, Rick!
I haven’t been through angel funding myself, but I’ve read a bit about it and convertible debt is a common approach. The angels want to see you get to your Series A in that 15 months. If the company does that, the debt converts to equity and you don’t have to pay the loan off.
And who says you aren’t funny!?!
Anyway, just my opinion…not looking for answers. I say thanks but no thanks to this program from the OEN.
I would suggest that you are far more likely to get some real answers by raising this question on the OEN blog post referenced above.
It’s an interesting question. And I’m sure that the OEN answer would likely be far more likely to shed light on the subject than my continuing to banter about ill-informed hypotheses.
I mean, what does a florist know about Angel funding anyway? Seed funding maybe. But Angel?
I agree they have the right to expect a return, however:
1. I don’t typically think of Angel investing as debt…isn’t it usually equity?
2. Payback in 15 months…are you kidding me? With a $150k investment, that is a monthly loan payment of nearly $11,000.
If I could afford additional debt servicing to the tune of $11k per month, I woulnd’t be pitching for funding at Angel Oregon.
I think anyone who has had the pleasure of the “securing working capital from an investor” process would agree that greasing the skids for securing this type of Angel funding is a prize in-and-of itself.
Terms are terms. These folks are giving people their money. They have a right to expect a return.
My $0.02, at least.
Check out this statment from the OEN web site:
“If a company does not have a lead outside investor and Angel Oregon Investment Committee desires to invest in an applicant’s company, applicants must agree in advance to accept the Angel Oregon Standard Convertible Loan Term Sheet”
The Term Sheet (linked below) states that you are accepting a 15 month loan with a 10% interest rate.
Am I the only one that doesn’t think the ‘winners’ are ‘winning’ much?
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