Thursday, April 30, 2009

Angel groups requiring entrepreneurs to pay to pitch

Where should entrepreneurs invest their resources?There's no doubt there are a lot of entrepreneurs with ideas that range from incredible to terrible, for the most part seeking seed funding with angel groups, who have to somehow accomodate them all.
Also, a lot can been said about northeastern investors being somewhat more conservative than their west-coast collegues, seeking more 'sciense projects' more than mashups.

Today I've heard of another northeastern angel group requiring startups to pay to pitch. It's not a 5-digit number, but it is a 3 digit number for one, and 4-digit for the other. I'm sure there's a very good reason for it, that I'm not aware of. I'm sure this is not an expense that the average investor group can not self-manage. Is it a tool to filter entrepreneurs? And if so, does this mean that investors think successful entrepreneurs are the ones who can afford handing money over to investors (which sounds to me somewhat reversed)?

It just strikes me that entrepreneurs need to focus on making progress at their business, and put every resource they can into it, including, or perhaps, especially money.
Angels asking entrepreneurs to pay to pitch is, well, beyond me. Sorry.

At the same breath I'd like to mention a highly popular recent thread that's talking about more focus into students who have great ideas (Here's one, two and there's more): (Scott Kirsner) "the biggest way to make Boston more competitive and innovative right now is to do a better job connecting students with our innovation economy"
I've nothing against that, given the incredible things that are coming out of the MIT's of the world. At the same breath, though, there is something to be said about experienced workers seeing something they could do better and pursuing it. One thing that stands for them, at least, is their experience and knowledge.
I don't think it's the one or the other, but the almost-exclusive focus on grads is slightly missing the point IMO.

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