The new beginning!

ranjit shekwat ([email protected])
Sun, 12 Apr 1998 16:14:58 -0400


Hi Folks,

It's me again. Now I am beginning to get really excited about the
Venture Capital Group. I guess I am one of those persons, who we would
term as a long - race horse. I begin slowly, but once committed, I
tend to give it pretty much all I have. Having said this I am
beginning to notice that offers of projects and ideas are beginning to
filter into the SIG. Also speaking to Rajesh, the SIPA president, I
feel that there is full and committed support to this group. On that
note then, here goes, my plan of action: a) To contribute an article
at least once a week b) To take, very seriously, all the offers and
projects that come through this group and also c) To reach this group
out to Canada and Asia, in an effort to increase the projects and
funding available. Finally to expand the scope from the Bay Area, to
the rest of the US(Hey I've always maintained there is more to life
than the developments along 101s and 280s).


So here goes, the first of my articles-regular,


a) Following is the list of people who link wealthy private investors
with entrepreneurs and startup companies:

1) Rural Venture Capital Network- Ph: 530-893-8732. Formed in Jan to
link entrepreneurs in a 15 county area(guess there isn't more to life
than 101s and 280s). Six month membership fees are $250 for
entrepreneurs and $500 for institutions)

2) The Capital Network Inc.- Located in Austin Texas and with a ph.
no. of 512-305-0826. The organization has linked about 300 investors
in 2000 companies around the country and helped entrepreneurs raise
more than $150 million. Fees are $ 450 for entrepreneurs and $950 for
investors.

3) Colorado Capital Alliance- Started in Boulder Colo,(303)499 9646.
Purpose to link emerging growth companies in need of $50000 to $1mill
with angel investors. More than 2000 matches and 275 introductions.
Fees are $250 per year.

4) Technology Capital Network- MIT Cambridge- 617-253-2337. This
program was started in 1984 and primarily serves New England. Annual
fees are $300 for entrepreneurs and $350 for private investors.

5) The Digest of Internet Financing, published by Stapleton &
Associates(www.staples.com/angelnet.htm), lists Web sites that link
sophisticated private investors and high-risk start-ups.

Additionally the following article appeared in the San Francisco
Chronicle:

Angel investors are now forming Boys Clubs. One example is the
Saratoga Boys Club, which is a group of wealthy Silicon Valley
executives and retirees who have taken early stakes in more than 20
startups. The thing with these firms is that they want too much of the
company, quick returns and more control over management and
direction.Their source of funds is from pension funds and other
instituitonal investors. Angels tend to be engineers by training, form
CEO's down to VP of operations and they understand technology. As
Silicon Valley and other technology centers spawn more successful
companies, there has been an explosion of mega millionaires. Microsoft
alone has coined more than 5000 millionaires. Public stock offerings
by hundreds of Bay Area firms have created many more than that. Not
surprisingly these wealthy engineers, investors, executives and
financiers want to get even richer. And what better way to do than by
becoming angel investors and financing junior versions of themselves
with similar visions and next generation technology. Each week Silicon
Valley creates an estimated 10 to 20 new companies. According to
VentureOne, the research firm, venture capital firms invested $11.5
billion last year in promising young companies, most of which were in
the high tech industry. Meanwhile angel investors have funneled as
much as $50 billion into a wide range of start-ups. One such private
financier is Roger Sippl, who started Informix, Visigenics Software
and Vantive. He has not given up what he calls his "day job."But like
many other entrepreneurs who have made it, he likes playing angel
investor on the side.


Well so much for now. Again keep the inguiries coming and let us make
a success of this SIG.


Vivek Kumar
[email protected]