Bryan Brewer, Founder of Funding Quest
“You have to go to Silicon Valley to raise money.”
I usually hear this lament from entrepreneurs who are having trouble getting traction in the local investment community. True, there is much more money available from Valley investors. But there is also much more competition for those dollars.
When you look at the data, you find that there is actually plenty of angel money in Seattle and the Pacific Northwest.
Two things to consider:
First, for 2012, the local angel groups in the Seattle area reported that their members invested more than $63.1 million in 146 deals that came through these groups. (You can download the full 2012 report at www.funding-quest.com.) There may be some overlap with the number of deals, but the $63.1 million is the total that members reported to their groups.
The local numbers for 2013 are likely to be about the same, and you can find out these details at the MITEF Venture Lab event on Thursday April 3, 2014, in Seattle. Entitled Meet the Angels, the program features representatives from nine local angel groups. (Note: this annual event usually sells out.)
Second, two major reports on angel funding nationwide are also revealing. For 2012, the Center for Venture Research of the University of New Hampshire reported a total of $22.9 billion in angel funding across the U.S. The Halo Report, published by the Angel Resource Institute, reported that 6.3% of U.S. angel dollars were sourced from the Pacific Northwest region in 2012.
The result: $1.44 billion of angel funding from the Northwest.
Here are several conclusions you might draw from this information:
• There is plenty of angel money in the Northwest ($1.44 billion in 2012).
• Only a small proportion of deals are funded through angel groups.
• Therefore, in addition to working with angel groups, you can dramatically increase your chances of raising funding by reaching out to angel investors through your own contacts and networks.
If you'd like to learn more about raising angel funds, Funding Quest is offering its popular one-day workshop How to Get Angel Investors to Finance Your Business on Tuesday April 8, 2014, in Seattle. The workshop covers specific tactics about how to find and connect with angel investors.