Angel Investors Archive

Below is a recap of the February 10, 2012 episode of the ABC show Shark Tank (episode 302). If you are unfamiliar with Shark Tank, the concept is simple – entrepreneurs pitch their ideas to a panel of investors and the investors have to provide at least the amount the entrepreneur is seeking for a deal to be completed.

Tonight Barbara Corcoran was replaced by QVC product creator Lori Greiner.

Pitch #1 – The Swilt

Ivori Tennelle pitched her product called, “The Swilt” which she describes as a sweater and blanket together. She was seeking $30k for 35% investment and wanted to use the money for SEO and to create inventory. None of the sharks were interested and Lori noted that the Snuggie is dead.

Pitch #2 – Show No

Up next was Shelly Ehler presenting her “Show No” towel. Basically it is a changing towel for kids so they can change into dry clothes at the beach or a water park. So far Shelly has sold $15k in Show No towels to two major amusement parks. Shelly was seeking $50k for 25% investment. This was one of the most heated battles between the investors to-date. Kevin O’Leary referred to the product as a “towel with a hole in it” but the other investors were very interested. Final offers were: Lori at $75k/25%, Damon John at $75k/20% and Mark Cuban at $75k/25%. Shelly selected Lori Grenier’s offer and Lori actually handed a signed check to Shelly – a first for the show (although I would assume it was to make good tv).

Shark Tank Update – Notehall

I am sure you already have heard about Notehall – they signed a deal with Barbara Corcoran for $90k and last year sold to Chegg. Venturebeat noted that Chegg gave Notehall $3.7 million in stock plus an undisclosed amount of cash.

Pitch #3 – Puppy Cake

I am not a dog person so I certainly don’t get this one but Kelly Chaney presented her creation called the, “Puppy Cake“. The Puppy Cake is a cake mix for dogs so you can create a cake for the dog’s special day. She was seeking $50k for 25% and Kelly noted she has $80k in sales over her 4 years in business. Unfortunately none of the investors took the deal. Somehow I think that the idea would work better if Kelly made the cakes and sold them in specialty food stores.

Pitch #4 – Wine Balloon

Last up was Eric Corti with his invention the, “Wine Balloon“. The product is basically a balloon that you insert into a bottle of wine, pump it up and Eric notes that it saves the quality of the wine better than any other device on the market. This was yet another hot battle for the investors. Eric was seeking $40k for 30% and Kevin O’Leary offered exactly what Eric was seeking. Lori Greiner offered $500k for 100% of the company. Mark Cuban joined Lori and offered a combined $600k for 100% of the company. Eric didn’t accept quick enough and Lori and Mark came back with an offer of $400k for 100% and Eric accepted. So in the span of 3 minutes, Eric lost $200k.

Below is a recap of the February 3, 2012 episode of the ABC show Shark Tank (episode 301). If you are unfamiliar with Shark Tank, the concept is simple – entrepreneurs pitch their ideas to a panel of investors and the investors have to provide at least the amount the entrepreneur is seeking for a deal to be completed.

Pitch #1 – Chord Buddy

Founder Travis Perry created a plastic gadget that you place onto an acoustic guitar to help you learn how to play the guitar. As you learn how to play, you remove pieces of the Chord Buddy until you have completed removed the gadget and are playing completely solo. Travis was seeking 125k for a 10% investment.  Travis selected the offer from Robert Herjavec for 125k for 20% of Chord Buddy and in addition Robert will put 50k into an escrow account for a potential infomercial at a later time.

Update – CBS Foods

Shrimp burger manufacturer CBS Foods didn’t sign a deal last season on Shark Tank. The update explained that while no deal with completed on the television show, the company received a number of offers and has moved from 30k in sales before the Shark Tank appearance to a projected $5 million in sales this year.

Pitch #2 – Liquid Money

Founder Pat McCarthy demo’d his fragrance named Liquid Money. Available in both men’s and women’s versions, Liquid Money is supposed to smell like fresh, crisp US currency. Pat was seeking 100k for 5% and rejected the only offer from Damon for 100k for 80% of Liquid Money.

Pitch #3 – Tail Lightz

Kyle Rainey was up next with his Tail Lightz jean patches. Remember those patches we all sewed onto our jeans in the ’80s? Kyle has updated them with lights. He was seeking $50k for 50% of Tail Lights – no offers were presented from the Sharks.

Pitch #4 – You Smell

Last up on this episode was Megan Cummins presenting soaps under the brand name You Smell. The most interesting product in Megan’s line is the soap that was as thin as a piece of paper in a small package like Orbit gum – seemed good for traveling when the public restroom is out of soap. Megan was seeking $55k for 20%. This was a fierce battle from the sharks for the investment. The final offers were: Mark Cuban at 55k/20%, Barbara Corcoran at 55k/30% + 10 cents per bar sold, Robert Herjavec at 55k/20% + 50k first-year salary for Megan. Ultimately Megan selected Robert’s offer.

As part of Internet Week NY, the VC Bootcamp is presenting a live discussion for entrepreneurs seeking advice on venture capital and angel financing. Presenters will discuss a broad range of topics regarding the venture capital fundraising process, such as strategies to secure an initial meeting with an investor, how to best present your idea, financing strategies and alternatives, overview and timing of the process, identifying and negotiating key business and legal points of the deal, and how to position the company for a successful liquidity event.

Tonight’s presenters include:

• Selim Day, Wilson Sonsini Goodrich & Rosati
• Adam Dinow, Wilson Sonsini Goodrich & Rosati
• David Rose, New York Angels

You can watch the live video below or on Livestream.
Continue reading “VC and Angel Financing Bootcamp (video)” »

We first wrote about NYC Seed when they launched their seed funding program for NYC-based startups in late 2008. The group invested in five startups to-date.

Last week NYC Seed announced the launch of the SeedStart 2010 program. It seems very similar to the Y-Combinator and other similar programs. The program is described as, “NYC SeedStart is an 8-week summer program designed to provide seed funding for technology teams to build a product and launch their company. We will give up to 10 teams a small amount of funding, space, and mentorship in exchange for a small piece of equity in whatever they build.”

The selected startups receive $20,000 and give 5% equity to the NYC Seed group. Companies partnering in the program include: Contour Venture Partners, IA Ventures, NYC Seed, Polaris Venture Partners, RRE Ventures, Fish and Richardson, Manatt, Phelps and Phillips and SVB Financial Group.

Teams must have at least 2 people and no more than 4 people to apply. Applications for the SeedStart program are due by February 28, 2010.

Here’s the latest NYC venture capital news:

TechAviv Angels Launch

TechAviv founder Yaron Samid has announced the launch of a new angel investing group named TechAviv Angels. Several popular NYC startup founders are part of the group including Ron Yekutiel from Kaltura and Yaron Galai from Outbrain. It looks like about 15 entrepreneurs make up the TechAviv Angels group. In addition, a number of early stage VC firms are participating as well.

From the announcement, “We seek to identify, fund and mentor our next generation of big winners. Every two months in Tel Aviv 5 startups get 5 minutes to pitch in front of our members. We’re an informal Angel club with members investing individually.”

It’s free to present and the first demo night will be held on November 24. I am unsure of is if the demo event will be held in NYC or in Israel. I will update this post once I find out the answer. More details on Ouriel Ohayon’s blog.

RRE Offers Office Hours

NYC VC firm RRE Ventures has announced that they will now offer office hours beginning on November 9. Each entrepreneur can signup for a 15-minute slot and discuss any topic with the venture capital team at RRE. RRE has invested in a number of NYC-based startups including Adaptive Blue, Drop.io and GoMobo.

Content sharing and bookmarking service Shareaholic has announced a new round of angel funding this week. Founder Jay Meattle says that they raised a, “few hundred thousand”. Meattle also notes that more items are shared each day via Shareaholic than on Digg.

Xconomy has more details on the funding.  The full list of Shareaholic’s angel investors includes:

• Ed Roberts, founder, MIT Entrepreneurship Center; co‐founder, Sohu.com
• Dharmesh Shah, founder and chief technology officer, HubSpot
• Eric Dobkin, Advisory Director, Goldman Sachs & Co.
• Brian Balfour, co‐founder, Viximo
• David Cancel, co‐founder, Compete
• Andrew Payne, investor in Care.com, Digium, HubSpot, and SmartFlix; co‐founder, FanSnap
• Brian Shin, founder and CEO, Visible Measures

The company is based in Cambridge, Massachusetts. It looks like their business model will be based on data usage. Check out our post about their buzz monitor launch from this past summer.

Last year I traveled to Philly for the DreamIt demo day 2008. Unfortunately my schedule wouldn’t allow for the trip this year but here are the DreamIt presenting startups that will demo their technology today.

Notehall
Class notes and study papers marketplace
http://www.notehall.com

OurShelf
Social cataloging that powers online shopping and classifieds
http://ou.rshelf.com (make sure to spell this URL correctly)

Parse.ly
Displays relevant content based on your interests
http://parse.ly

PostLing
Social media marketing tool for small businesses
http://postling.com

SeatGeek
Web app forecasts ticket prices for events so you pay the lowest possible price
http://SeatGeek.com

StraightUpEnglish
English language SaaS tool
http://straightupenglish.com

ThreeScreenGames
Creates games for all three platforms – tv, pc and mobile
http://FanGamb.com

Trendsta
Marketing tool for companies and brands to connect with teens and tweens
http://trendsta.com

Jobaphiles
Marketplace to allow people to bid on jobs and gigs
http://Jobaphiles.com

Kidzillions
Online allowance and chore management system for kids
http://Kidzillions.com