Angel investors, fund managers, investment groups, and early stage VCs are finding golden opportunities in these economic times. Entrepreneurial America has never been more vibrant, creative, productive or innovative than when the markets are down.
The collapse of public stock values for even "Blue Chip" companies is driving investors to seek alternate ways to recover their portfolio losses. With the cost of key business inputs (labor, rents, technology) lower than ever, the time is right for entrepreneurs to seek private capital to expand their businesses and lead the economic recovery.
When all the fundamentals of a successful business are present (growing target market, product that satisfies an unmet need in the market, and a management team with the knowledge and experience to execute) all firms need to succeed is simply good old-fashioned growth capital. Savvy investors aren't throwing money at early stage companies, but they are looking to investigate, identify and selectively invest in those companies with the greatest potential for high returns.
And to attract this capital, these companies -- in such dynamic growth arenas as healthcare & biotechnology, alternative & green energy, digital media, and software, need to get the word out and present their case. They need to reach out and pitch investors at venture conferences and angel groups. Entrepreneurs seeking to get their companies in position to lead the economic recovery need be where the investors will be to tell their stories and inspire belief in their products.
According to the National Venture Capital Association 3,808 ventures raised VC funding in 2008 totaling $28.3 billion. And, according to the Center for Venture Research 70,000 ventures were funded by angel investors last year totaling $37.2 billion. Remarkably, this was after the "recession" had officially begun. The money hasn't disappeared, it is just being judiciously apportioned by the venture and angel markets. Capital is still out there and with the right plan entrepreneurs can get their share of it.
How can investors and entrepreneurs find each other in these economic times? According to Karen Rands, President of Launch Funding Network, "One of the best ways for entrepreneurs to link up with investors is through regional conferences such as the Southeast Private Equity Conference (SPEC) being held on April 14th and 15th, the Atlanta SE Venture Conference, the Florida Venture Forum or the New York Private Equity Forum. According to Ms. Rands, conferences like these offer opportunities for investors and entrepreneurs to meet and learn about each other in an informal atmosphere that is conducive to discussion and sharing information. Typically there is a screening process to ensure a good fit between the companies and the investors attending the conference.
Added Ms. Rands, "Last year, SPEC brought together nearly 200 attendees including investors representing over $560 Million in capital. Deals were done, resulting in millions of dollars being invested in companies looking to respond to their market opportunities. Angel Investor M. Horton had this to say about SPEC 2008, "Congratulations on a superb job on SPEC -- great organization, many interesting companies and an attendance that far exceeded my expectations."
Atlanta is rapidly becoming the hotbed of innovation and capital formation in the Southeast. Not surprisingly, there are three venture capital forums scheduled for 2009. SE Venture Conference, Venture Atlanta and the Southeast Private Equity Conference (SPEC) all seek to help the economy by connecting worthy companies with investors. SPEC 2009 is unique because it benefits the early stage company that is seeking angel investors as well as early stage venture capital funds. It has been scheduled to precede the Angel Capital Association's national conference so that the members of those angel groups can conveniently travel one day early to attend SPEC and gain the added benefit of looking at great companies that may be of interest personally or to take back to their Angel groups.
These venture conferences are poised to be pivotal events and have profound impact on the market. Entrepreneurs and investors seeking to be economic architects- builders of change that will bring prosperity to all involved - should make plans to attend conferences such as SPEC 2009 so they can meet, connect and build the future together.