S1 E45 Difference Between Angel & Venture Capital Investors with Wayne Carroll and David Blackledge

S1 E45 From Seed Round VC Funding Navigating Startup Investment Startups waste a lot of time and effort asking the wrong angel investor groups for money. Differences between Angel Investors and Venture Capitalists - Most businesses cannot provide the return on investment that venture capitalists seek - Angel investors focus on investing in small businesses at the seed round stage - Angel investors typically invest between $500,000 to $1.5 million in companies while venture capitalists invest in more established businesses - Venture capitalists invest in companies with audited financials and potential for scalability to $10 million or more The Story of WhatsApp and Venture Capitalists - WhatsApp was initially funded by friends and family - Venture capitalists eventually invested $58 million, which turned into $3 billion after Facebook's acquisition - Venture capitalists have a billion-dollar fund and need big deals with high returns Finding the Best Places for Funding - Advisors can help businesses determine the best sources of funding - Angel groups are becoming more specialized and focused on specific industries find the Angel investor groups that in your industry - It's critical to not waste time applying to groups that are not a good fit for the business Investment Strategies of Angel Investors - Angel investors typically invest in 10 startups with $1 million each, aiming for at least 1 startup to bring in $20 million - The ultimate goal is to sell the startup to venture capitalists or companies ideally for $24-30 million, or 20 to 30 times the valuation from when the angels invested - Venture capitalists aim to make a profit by selling the company or scaling it even further and expect some level of control in the business. Special Guest: David Blackledge. David focuses his practice on startup and emerging businesses, particularly in various technology markets. This includes counseling business owners from entity formation through raising capital and company growth and on business associations with other partnerships, distributors, licensees, and general business relationships. David spent the first thirty years of his professional career in sales and operations management of high-technology startups giving him a unique perspective on advising business owners, investors, and others in the business world. David is an active investor in multiple angel groups and an Adjunct Professor in Law and Ethics at Grand Canyon University, as well as a mentor and judge in many Arizona-based business competitions. Website: davismiles.com/attorney/david-blackledge/ LinkedIn: linkedin.com/in/david-blackledge-7829a23 HOST: Wayne Carroll founded Inspired Idea Solutions Law Firm in 2013, an IP boutique law firm focused on helping small businesses with intellectual property. At Inspired Idea Solutions, we use a proven process for obtaining IP rights that focuses on aligning the business strategy of small business clients with their IP strategy. We help small businesses implement a strategy to ensure they own and leverage their intellectual property. We also have clear expectations with zero hidden fees. In addition to his legal work, Wayne is an Eagle Scout and actively volunteers with the Boy Scouts of America. He is also a proud father of six children and enjoys playing pickleball. Wayne's extensive experience and expertise in intellectual property law make him a highly respected attorney and a valuable asset to clients seeking protection for their intellectual property rights. Wayne can be reached at 480-741-2440 or [email protected]. You can also connect with Wayne on LinkedIn. Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.