

Angel Capital Association Guidelines on Fees for Applications and Presentations - skmurphy
http://www.angelcapitalassociation.org/dir_resources/entrepreneur_fees.aspx

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pg
What they don't get is that there are a lot of startups for which several
hundred dollars is not a nominal charge.

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netcan
If we assume that the majority of these are not simply trying to make a buck
from 'nominal fees,' maybe they're using it as a sort of screening process. I
assume that even a $400 charge would have a major effect on what applicants
end up presenting.

Theoretically, you could argue that it keeps away anyone that doesn't believe
she's got a reasonable chance of getting funded. I believe it will keep away
many idea only "startups" that don't have any real substance behind them. It
would also keep away those just practising or testing the waters.

Again theoretically, it is not even necessarily a problem if it keeps away
perfectly good presentations. If they get can get more presentations then they
can hear, it's ok to lose some good ones as long as your mean quality rises.

What throws a spanner in the mix is what startups (especially those that see
$500 as a hit) think of those groups that charge them.

I have no idea what the reality is. But the tone on HN always seems to suggest
that this is an option for the naive, inexperienced & clueless. That's
certainly not the image they should want to project.

Again speaking with no experience, that makes some sense. Even taking the
above assumption (they're not just hearing presentations for a profit) you'd
be thinking that if they do need such crude screening device, they'r unlikely
to be funding a very high percentage.

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jacquesm
any angel investor that starts with charging for presentations is going to
miss out on a lot of information.

I think that a start-up presenting to an angel investor teaches _both_ parties
something and should be done on neutral ground, so no money should change
hands until an investment is agreed upon.

Personally I've never seen a successful angel investor that charges to be
presented to, I'd like to hear otherwise if you have a counterexample.

The only situation that I've seen money change hands before an investment is
when the 'angel' gets hired as a consultant and then later becomes an
investor.

