tag:blogger.com,1999:blog-284452632011-04-21T13:31:32.189-07:00Life is about moving large immovable objects. Sometimes the "mountain" moves, sometimes it doesn't. But it a lot more fun to try to move the mountain than climbing over it.Bob Ellsworthhttp://www.blogger.com/profile/11974318824616162923noreply@blogger.comBlogger21100tag:blogger.com,1999:blog-28445263.post-1172209414497924442007-02-22T21:43:00.000-08:002007-02-22T21:43:34.500-08:00Working to try to get my startup funded (besides the $100K or more I have put into it so far) has reminded me that the difference between an angel investor and a banker is the banker wears a suit and can give you a toaster if you are nice.<br /><br />Now, I am not talking about the friends and family type of angels who invest because they like you. I mean those angels who think they are slightly smarter than the VCs, but are just as risk adverse.<br /><br />I don't blame angels for wanting to see significant traction and proving the model works before investing, but why not just call yourself a VC?<br /><br />Personally, I think there is a hierarchy of funding:<br /><br />Founder and friends/family <br />Idea, concept, prototype development, market research<br /><br />then<br /><br />Angels<br />System development, partnerships, monetization, operationalize<br /><br />VCs<br />Market beyond initial contacts, stable version, profitability<br /><br />Right now, the angels want to come after development, monetization and operationalization. This means founders and F&F have to carry a larger share of the initial funding, which means less companies make it to angels at low valuations.<br /><br />It also means angels are seeing more and more of the simple ideas that can be implemented and monetized with less money. I don't know if they have also noticed many of these companies have very little potential to grow beyond a niche they have exploited and unlikely to grow towards an exit.<br /><br />Ironically, this means the "safe" angel investment is actually not that safe.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/28445263-117220941449792444?l=moving-mountains.blogspot.com' alt='' /></div>Bob Ellsworthhttp://www.blogger.com/profile/11974318824616162923noreply@blogger.com1tag:blogger.com,1999:blog-28445263.post-1148143195298265922006-05-20T09:31:00.000-07:002006-05-20T11:33:51.136-07:00Everyone has something to say, something to share, and probably a hope others will take the time to read it! So, I appreciate you reading this.<br /><br />My goal with this blog is to talk about a couple of different subjects I care about professionally:<br /><ul><li>Social networking, particularly as it relates to my new company Wakapa</li><li>Social good, particularly as it relates to my experiences as a pioneer in online fundraising with companies such as eContributor.com, Network for Good, and Charity Aid Foundation (UK)</li></ul>I plan to update this blog site regularly and check it for comments like a mouse on crack, so please tell me what you think, what you like and what you don't.<br /><br />Thanks, Bob<br />May 20, 2006<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/28445263-114814319529826592?l=moving-mountains.blogspot.com' alt='' /></div>Bob Ellsworthhttp://www.blogger.com/profile/11974318824616162923noreply@blogger.com0