Monday May 5, 2014 0 comments
By Peter Adams
Rockies Venture Club Executive Director
How can the Colorado entrepreneurial community help to ensure that Colorado is more than just a "flyover state" for venture capital and institutional investors?
Colorado is already on the map with four of the top 10 cities for startups, and now it's time to capitalize on all the great ideas and hard work and get Colorado companies in the bulls-eye for out-of-state investors.
"Follow Colo," (short for Follow Colorado Companies on AngelList) is a way that the Colorado entrepreneurial community can help Colorado companies get noticed on a national scale. AngelList is now the defacto clearinghouse for on-line listings of companies that are seeking angel funding.
Brad Feld's FG Angels regularly syndicate deals by gathering a group of angels to invest in a particular company using the platform. For companies who feel that going on-line to search for funding is their best strategy, AngelList's nearly 30,000 investors registered on the site make it the place to get deals done.
When a company publishes their profile on AngelList ,nothing really happens unless the community acts to help increase the company's "signal" and to get it "trending" so that it shows up at the top of the trending list, which gets a company the most attention with investors. This social validation is a key to AngelList's strategy to identify the companies in which angels should be interested in investing.
A company listing on AngelList should create a campaign to gain momentum on the site because the trending algorithm works by prioritizing companies that have the most activity within a period of time.
Companies wanting to create a campaign should follow these steps:
- Prepare your AngelList profile and make sure you're 100 percent ready to go before you publish because the clock starts then!
- Identify a prominent individual to be your "Referer," the person who has presumably referred you to the AngelList group. The more connected this individual is, the better.
- Find everyone you know who is already on AngelList and connect with them.
- Encourage others you know to join AngelList and connect with them.
- If you have a lead angel who is on AngelList, encourage them to start a Syndicate, which makes it easy for others to jump on-board, especially if that person is well respected and is known to make good investments.
- Finally, publish your profile, post on social media, send emails to your contacts on AngelList and get them to Follow and Share your deal. Keep up the momentum until you're funded.
The trending list on AngelList today has 163 companies and only one of them is from Colorado. (Door to Door Organics from Boulder) Most of the companies on the list are not surprisingly from the San Francisco area, New York and Boston. These areas have large numbers of investors who regularly share deals amongst themselves. Colorado's investors are neither as numerous or as organized, so this is where the community needs to pitch in to help Colorado companies.
Colorado Companies like Rachio, Meetmindful, Myhub and Mozio could use your help - be sure to visit AngelList today and "Follow Colo."