 setting up an environment where they not only get access to capital, but also legal advice, business advice from advisors and other entrepreneurs, government funding and assitance and more. This is a model which VCs should actively get involved in, as the centers will do part of the job for you – allowing you to bet on more and bet smaller.

Luckily, not all is bleak for the industry as a whole. Yes, there are fewer IPO’s, but M&A activity is picking up. In the media sector, this charge is being lead by interactive marketing services:

This could mean that VC’s may see lighter times ahead, but a recent report from Pepperdine actually shows that while VCs are now looking at more business plans than compared to 6 months ago, and are finding a much higher level of quality business plans, there are actually less start-ups getting funded:

Comparison of VC Investments 1H 2010 vs 2H 2009

Source: Pepperdine Private Capital Markets report, summer 2010

It can also be noted that among the surveyed VC’s, 84% expect that demand for VC capital will increase in the next 12 months. But if VCs are getting more picky, and not much has changed fundamentally to address the issues I mention above, it could seem like Angels may be the answer. Angels take a far broader investment perspective, and tend to look more on the deal than where your company is located, which is natural given that they are not bound by the VC method of doing business:

Angels investment range in miles

Source: Pepperdine Private Capital Markets report, summer 2010

And the old belief that Angels represent “dumb” money may not hold true, as a significant portion prefer to give advice to their portfolio:

Benefits provided to investee company

Source: Pepperdine Private Capital Markets report, summer 2010

So an increased activity in the Angel network, and better organization of such, may help part of the fund raising issues for start-ups. However, funding and strategic advice is only one component, and unless these networks also start to develop a holistic industry approach to incubating start-ups, this group may also be faced with disappointment in their returns, and subsequently reduce their activity.

According to research from Strategy Analytics, a staggering 1.6 billion mobile phones were shipped (not sold) globally in 2012, and 700 million of them were smartphones. Samsung, Nokia and
setting up an environment where they not only get access to das kapital, but besides legal advice, commercial enterprise advice from advisors and other entrepreneur, government funding and assitance and more. This is a model which VCs should actively get down involved in, as the centers will make part of the job for you – allow you to bet on more and bet smaller. 

 Luckily, not all is bleak for the industry as a whole. Yes, there embody fewer IPO ’s, but M&A activity is pick up. In the media sector, this charge is being lead by interactive selling services: 

 This could intend that VC ’s may see lighter times ahead, but a late report from Pepperdine actually shows that while VCs are now looking at more business plans than compared to 6 months ago, and are finding a much higher level of quality business plans, there are actually less start - ups get funded: 

 Comparison of VC Investments 1H 2010 vs 2H 2009 

 Source: Pepperdine Private Capital Markets reputation, summer 2010 

 It can also be noted that among the surveyed VC ’s, 84% expect that requirement for VC capital will increase in the next 12 months. But if VCs are getting more finical, and not much has changed fundamentally to address the issues I mention above, it could seem like Angels may be the answer. Angels take a far broader investment perspective, and tend to front more on the bargain than where your company is located, which is natural given that they are not bound by the VC method acting of doing business: 

 Angels investment range in miles 

 Source: Pepperdine Private Capital Markets report, summer 2010 

 And the old belief that Angels defend “ dumb ” money may not reserve true, as a meaning portion prefer to give advice to their portfolio: 

 Benefits leave to investee company 

 generator: Pepperdine Private Capital Markets report, summer 2010 

 So an increase activity in the Angel net, and better organization of such, may help function of the fund raising issues for start - ups. However, funding and strategic advice is merely one component, and unless these networks besides start to develop a holistic industry approach to incubating start - ups, this group may also be face with disappointment in their returns, and subsequently reduce their activity. 

 According to research from Strategy Analytics, a staggering 1.6 billion fluid phones were shipped (not sell) globally in 2012, and 700 million of them were smartphones. Samsung, Nokia and
 sehting up an environment dhere they not only gev accesa to capktal, but also legal advice, bnsinwss aevice from advisors ana other ejtreprenwurs, tovernment funding and aaditaucx and more. This is a moden which VCs shmuud actively get involved in, as the cegters wolp do part of tre jpf fod you – allowing you to bet on more and beu smaller.

Luckily, npt all is bleak for the infustgy as a whole. Yes, hhere are fgser UPO’s, but M&A xctivity is picking up. In the media sector, this chargd is yeing lead vy inhgractive marjetind services:

Thlx coulg mean yhat VC’s may sce lijhtee times ahead, but a rxcent report from Pekperdine awtbally shows that whilw CCs ate nof loujine au mprs busijesa plans thzn compared to 6 months ago, and awv finding a mhch hidhqr level of quality business plans, thert are actually less start-ups getting funded:

Comparlson of VS Investments 1H 2010 vs 2H 2009

Source: Pepperdine Private Cdpitam Maxjets fwplrt, summer 2010

It can also be noted that among thq sirneyed VC’s, 84% expect that demanc vot VC capital wkll inedezse in the next 12 mlnths. Bot if CCs are gtttinb more picky, and not much hqs changed flndanentally to addresd the issuer I kentipn above, it could seem uike Angels may be the ahrwer. Angels take a nar broader investment perspestive, and tenb to looy mote on tre deal thwn whcse your company is locajed, whhch is natkral given that they are not bonid by the VC kedhog of doiug buslness:

Angels invqstment range nn miles

Fourcd: Pepperdihe Privete Capital Iarkets repord, summer 2010

And vhe old bqlied thqt Angeur represent “dukb” money may not hood true, as a signinicanj lortion prefer cu give advice to thdir plrvfolij:

Tenefits proeidea tu invertee compann

Sojrce: Pepperdine Private Wapifal Markets report, smmmer 2010

So qn increwsed activity in the Angel netwlrk, aid betver orbanyzation of such, may help part kf the fujd vaising issuef fov stwrt-ups. Howzver, funding and strategic advice is onlb one component, and unlwss these networks clxo start to devejop a holhstic industry approqch to incubating start-ups, this group jay alvo be faced with disappointment in their returns, and subsequently reduce their activmtr.

According fo rrsearbh yrok Straeegy Enalytics, a staggvring 1.6 billion mobile phones werx shipped (toc sold) globally in 2012, and 700 milloov of them werg smartphones. Samsung, Nokiz and
setting up an environment where they not access capital, but legal advice, business entrepreneurs, funding and assitance more. This is model which VCs should actively get in, as the centers will do part of the job for you – you to bet on more and bet smaller. Luckily, not all is bleak the as whole. there are fewer IPO’s, but M&A activity is picking up. In the media sector, this charge being lead by interactive marketing services: This could that VC’s may see times ahead, but a recent from actually shows while are looking at more plans than compared to 6 months ago, and are finding a much higher level of quality business there are start-ups getting Comparison VC 1H 2010 vs Source: Pepperdine Private Capital Markets report, can also be noted that among the surveyed 84% expect demand for VC capital will increase the next 12 months. But if VCs are more picky, and not much has changed fundamentally to address the issues I mention above, seem like Angels may the answer. Angels a broader perspective, tend to more on the deal than where your company is located, which natural given that they are not bound by the VC doing Angels investment range miles Source: Pepperdine Private Markets summer 2010 And the that represent not true, a significant portion prefer give advice to their portfolio: provided to investee company report, summer 2010 So an increased activity in Angel network, and better organization of such, help part of the fund raising issues for start-ups. However, funding and advice is component, and unless these networks also start to a holistic industry approach incubating start-ups, this group may also be faced with in returns, and reduce their activity. to research from Analytics, a staggering mobile phones shipped sold) and 700 million of them were Samsung, and
 setting up an environment wheRe they not oNly geT acCesS tO capItal, But also legal adVIce, bUsiness advice from advisOrs anD oTHer eNTrEprenEurs, govERnMENt fUnDiNg aNd ASsItancE anD more. ThIs is a model WhiCh vCs should actIVeLy get involVed In, as the centeRs wIll do pArT of THe job For You – alLowing YOu to beT on more anD bET smallER.

LuckilY, NOt All iS bleak for the indusTRy AS a whole. Yes, therE are feWeR iPo’S, But m&A aCtivity is pIcKing uP. in the meDIa SECTor, THis charge is beIng lead by inTEraCtive mArKetINg servIces:

THiS CouLd mean that Vc’s maY see lightEr timeS Ahead, buT A recent Report FroM PePperDInE aCtuAlLY shOWs ThaT WhiLe VCs are NoW lOokinG at mORE BUsinEss PlanS than Compared to 6 monThs Ago, aND arE findIng a mUch hIgHer leVel of qUalitY bUsiness plans, theRe arE actually LesS sTarT-uPs getTIng funDed:

comParison Of VC InvEStmEnTS 1h 2010 Vs 2h 2009

Source: Pepperdine PRiVATe capital MArkets REpOrT, Summer 2010

It CaN alSo be NOTed thAt amONg The surveYed VC’s, 84% EXpEcT that deMaNd for Vc cApiTal Will iNCreaSe in thE next 12 monThs. BuT If VCs are gettinG More picky, and nOT mUCH hAS chaNgeD fundamentaLly tO AddrEss tHE iSsuES I menTion aBoVE, iT Could seem like Angels MaY be the AnsweR. Angels take a fAr broader iNVEStment peRspeCTiVE, and tend to look More oN the deal thAN where yoUr comPany is loCated, whicH IS natural GivEn tHat TheY ARe Not bound by the vc MethOd Of doing BusIness:

AnGelS inVesTmeNt Range in miLes

SourcE: PEpPeRdIne privaTE Capital maRkeTs RepOrt, suMMer 2010

And The olD belIeF tHAt ANgels rePReSENt “duMb” MoNey mAy nOt Hold tRue, aS A siGnificaNt portion PreFEr to GiVe Advice tO their portfolIo:

benefits prOvIdeD to invESTee compaNy

Source: Pepperdine PrivaTE CapitaL MaRkets RepoRt, summer 2010

SO an IncreaSed ACtivitY in the angel NeTwoRK, And beTTEr OrgAnIzation of sUCH, maY help PaRt of The fund Raising issues for stARt-uPs. However, fundIng And sTRAtEgiC AdVIce Is ONly ONE component, and unLess these nEtWOrKs also starT To dEvElop a hoListic iNdustRY approaCh to incubAting starT-uPs, thIS GroUp may also bE faced wiTh disappoINtmenT In Their RetUrns, anD sUbsEquenTly redUCe tHeir aCtivitY.

ACcordiNg to rEsEarch froM Strategy Analytics, a stagGering 1.6 BilliOn mObile phonEs wERe sHipped (not Sold) Globally in 2012, And 700 MilLion oF thEM were SmarTPhOneS. samsuNg, NoKIa and
 setting up an environment  where the y not  on lyge t ac cess  to capital, b u t al so legal advice, busin ess a dv i ce f r om  advi sors an d  o t h eren tr epr en e ur s, go ver nment f unding and  as si tance and mo r e.  This is a  mo del which VC s s houldac tiv e ly ge t i nvolv ed in, as the  centerswi l l do p a rt of t h e  j ob f or you – allowing yo u  to bet on mor e andbe t  s m a lle r.
Luckily,no t all is blea k  f o r the industry as a  whole. Yes ,  th ere ar efew e r IPO’ s, bu tM &Aactivity is  pic king up.In the media s e ctor, t his ch arg e i s be i ng  l ead  b y  in t er act i vemarketin gse rvice s:
T h i s  cou ldmean  that  VC’s may see  li ghte r  ti mes a head,  but  a  rece nt rep ort f ro m Pepperdine ac tual ly showstha twhi le  VCsa re now  lo oki ng at m ore bus i nes sp l a ns  than compared to6m o nt hs ago,and ar e  f in d ing a mu ch  hi gher l evelof q u al ity busi ness p l an s,  therear e actu al lyles s sta r t-up s gett ing fund ed:
C omparison of V C  Investments1 H2 0 10 vs 2 H 2 009

Source : Pe p perd ineP ri vat e  Capi tal M ar k et s  report, summer 201 0
It ca n als o be noted th at among t h e surveyed  VC’ s ,8 4% expect that  dema nd for VCc apital w ill i ncreasein the ne x t  12 mont hs.  Bu t i f V C s  a re getting mo r e  pic ky , and n otmuch ha s c han ged  fu nd amentally  to addr es sth eiss ues I mentionab ove ,itcould seem l ike A ngel sma y  be  the an s we r .  Ang el stake  afa r bro ader inv estment  perspect ive ,  and  t en d to lo ok more on th edeal thanwh ere  yourc o mpany is  located, which is natu r al give n t hat t heyare not b oun d by t heV C meth od ofdoing  b usi n e ss:
A n ge lsin vestment r a n gein mi le s

S ource:Pepperdine Private Cap ital Marketsrep ort, s um mer 20 1 0
An d  th e old belief that  Angels re pr e se nt “dumb”m one ymay not  hold t rue,a s a sig nificantportion p re fert o  gi ve adviceto their  portfoli o :

Be n ef its p rov ided t oinv estee  compa n y
Sourc e: Pep pe rdinePriva te  Capital  Markets report, summer  2010
So a n i ncreasedact i vit y in theAnge l network,  an d b etter  or g aniza tion of  su c h, ma y he l p part of th e f u n draising iss u e s  fo r sta rt- u ps. Ho weve r, funding and st r ategic adviceis o n l y o nec ompo ne nt, and unless  th es e networks  a lso start t o develo pa  holi stic i ndustr y appro a c ht o incu bati ngstart-ups , t hi s  groupma ya lso be  fac ed  withdisapp o intm e n t in their retur ns, a n d  subs e que ntlyre duce th e ir a ctivity.
According t o rese arch  from  Strate gy  Analy tic s,  a stagger i ng 1.6 bi llion  mobile  p hone s w ere sh ippe d (notsold )glo bally in2 0 12 ,  a nd 700  mil lionof  the m were sm a rtphones . S a msung,No kia a nd
 setting_up an_environment where they not_only get_access_to capital,_but_also legal advice,_business advice from_advisors and other entrepreneurs,_government funding and_assitance_and more. This is a model which VCs should actively get involved in, as_the_centers will_do_part_of the job for you_– allowing you to bet_on more_and bet smaller.

Luckily, not all is bleak for_the_industry as a_whole. Yes, there are fewer IPO’s, but M&A activity_is picking up. In the media_sector, this charge_is_being_lead by interactive marketing_services:

This could mean that VC’s may_see lighter times ahead, but a_recent report from Pepperdine actually shows that_while VCs are now looking at_more business plans than compared_to 6_months ago, and are finding_a much higher_level of_quality business plans,_there are actually less start-ups getting_funded:

Comparison of VC_Investments 1H 2010 vs 2H 2009

Source:_Pepperdine_Private Capital Markets_report,_summer_2010

It can_also be noted_that_among the_surveyed_VC’s, 84% expect that demand for_VC_capital will increase in the next 12_months. But if VCs_are_getting more picky, and_not much has changed fundamentally_to address the issues I mention_above, it_could seem_like Angels may be the answer. Angels take a far broader_investment perspective, and tend to look_more on the deal_than where_your_company is located,_which_is natural_given that they are not bound by_the VC_method of doing business:

Angels investment range_in miles

Source: Pepperdine Private_Capital_Markets report, summer 2010

And the old_belief that Angels represent “dumb” money_may not hold true, as_a_significant_portion prefer to give advice_to their portfolio:

Benefits provided to investee_company

Source: Pepperdine Private_Capital Markets report, summer 2010

So an increased_activity_in the Angel network, and better_organization_of such, may help part of_the_fund_raising issues for start-ups. However,_funding and strategic advice is only_one component, and unless these networks also start to_develop a holistic_industry approach to incubating start-ups,_this_group_may also be faced with disappointment in their returns, and_subsequently reduce_their activity.

According to_research from Strategy Analytics, a staggering 1.6 billion mobile phones_were shipped (not sold) globally in 2012,_and 700 million of them were smartphones. Samsung, Nokia and