I listened to her speak at an angel investmet conference in NYC earlier this year and thought she would be a great interview for EnablingAngels. To hear more from Laura, you can check out her video interview with Inc. Magazine.
EnablingAngels: What makes the Angels Forum unique compared to other angel groups?
Laura Roden: TAF (The Angels' Forum) is different from most angel groups in several regards: size, time commitment, member qualifications, infrastructure, and investment criteria and policies. The group has always been capped at a maximum of 25 highly experienced and successful executives - we do not seek hundreds of members. TAF members commit 1-2 days every week to active involvement in private equity deal screening, due diligence, and portfolio mentoring and management, including our weekly all-members meeting; these activities are not delegated to staff or consultants. TAF invests via structured LLC vehicles that protect members' privacy while enabling the group to co-invest comfortably with VCs and other institutions in multiple rounds (many institutional investors will not coinvest with individual angels). In pooling the groups' funds into LLCs, TAF achieves the power to negotiate favorable deal terms that protect its investors' interests, and provide the entrepreneur with the resources of many through one point of contact.
EA: Who is your angel investor hero? Why?
LR: My particular angel "heros" are the investors who focus their time and money on companies where they have expertise and can contribute real value. There are many of these individuals, but they are not as famous as the few lucky "dice rollers" who happened to hit a jack pot when they wrote a check at a dinner where they really weren't paying attention.
EA: Sidecar funds are the topic de jour for many angel groups these days. What advice do you have for other angel groups looking to start sidecar funds like the Halo Funds?
LR: Sometimes I see groups starting funds, which provide fee income, as a substitute for increasing membership dues in order to support the group's operations. I recommend groups be realistic about their operating expenses and fully in agreement with their members on the value of the services they are providing. To run a successful fund requires investment discipline and fiduciary accountability; it should not be considered a backdoor to easy fee income without providing other value.
EA:Thanks Laura!
Posed for Playboy back in the 1970s. WOW!!
Posted by: Lynn Braver | October 15, 2007 4:10 PM | Permalink to Comment