angel mentoring: best...
TRANSCRIPT
Founded by:
Angel Mentoring: Best Practices Brandon Felkins Mike Schaller Allan May Marianne Hudson
Scope
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1. Why Angels should care about mentoring 2. Snapshot of current and best mentoring practices 3. Discussion and next steps
Agenda
Scope
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“Mentorship refers to a developmental relationship between a more experienced individual and a less experienced individual protégé.”
Definition
For this discussion… • Pre-funding • Group perspective – fit the criteria • Not limited to a specific format
Efforts Thus Far…
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• Mid America Angel Network • Seed Step Angels • Ariel Savannah Angel Partners • Seed Capital Fund of CNY • Band of Angels • Life Science Angels • Golden Seeds Boston • Sand Hill Angels
• Hub Angels • Tech Coast Angels • Golden Seeds NY • Blue Tree Angels • Common Angels • Sierra Angels • Frontier Angel Fund
Interviewed 15 Angel Groups Across the Country
• Motivation of group • Structure of program • Screening entrepreneurs • Matching entrepreneurs and
mentors • Training for mentors • Metrics being measured • Outcome of effort • Lessons learned
Efforts Thus Far…
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Examining Key Areas
Angels Can Be Great Mentors
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ANGELS
Knowledge
Motivation
Experience
Motivation
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OR
Why Should Angels Care About Mentoring
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– Deal flow – Altruism – Group camaraderie – Branding – ROI – Attract new members – Member training – Pulse on industry
– Time Consuming – Expensive – Hinder deal flow? – Branding
3 Structures for Mentoring
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1 on 1 Single Mentoring
Event
Outside Collaboration
• Sand Hill Angels • Hub Angels • Tech Coast Angels • Golden Seeds NY • Blue Tree Angels
• Life Science Angels • Band of Angels • Golden Seeds Boston
• Mid America Angel Network • Seed Step Angels • Ariel Savannah Angel Partners • Seed Capital Fund of CNY • Tech Coast Angels
#1 #2 #3
#1: 1 on 1 Mentoring Most angels have done it
• Often informal • Often independent from the group • Usually altruistic
Most angels have same issues • Time constraints • Not trained as mentors • Engagement issues
Suggestions for doing it better • Identify your motivation • Make expectations clear • Add some structure
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#1: 1 on 1 Mentoring
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#2: Mentoring Event
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK / FOLLOW UP
TRAINING
Advantages: • Low time commitment from
mentors • Increase visibility to
companies • Improve group camaraderie
Disadvantages: • Need point person • Not long term
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK / FOLLOW UP
TRAINING
Advertise • Extremely important • Use local law firms, banks, and
universities • Begin well ahead of time
(minimum 2 months) • Example: LSA
#2: Mentoring Event #2: Mentoring Event
#2: Mentoring Event
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#2: Mentoring Event
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK / FOLLOW UP
TRAINING
Screen • Not critical • Depends on your capacity • Focus on the entrepreneur not
the business plan • Example: Band of Angels
• Not presented to group before • Deal fits angel profile • Seek balance across sectors • 50% acceptance rate
#2: Mentoring Event
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK / FOLLOW UP
TRAINING
Match • Match mentors…
• by industry • by challenge faced • by stage of business
• Ask if the entrepreneurs have specific questions during the application process
#2: Mentoring Event
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK / FOLLOW UP
TRAINING
Training • Set the expectations on both
sides
• Be honest but constructive
• Give at least one tangible thing: • Introduction to a contact • Proxy business • Metrics to use
#2: Mentoring Event
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK / FOLLOW UP
TRAINING
Event Structure • Can be formal or informal
• Allow enough time (min 1 hour) • Typically:
• Review a slide deck • Angel feedback • Questions from entrepreneur
• Be flexible
#2: Mentoring Event
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ADVERTISE
SCREEN
EVENT
MATCH
FEEDBACK/ / FOLLOW UP
TRAINING
Feedback • Easy to do with online surveys • Ask right away:
• Usefulness? • Likely to pitch at group? • Length of session?
• Solicit from mentees and mentors
• Follow-up?
Sample Questions from LSA • How did you hear about the event? • What areas of input were you expecting help on? • What were some of the most valuable aspects of the event? • What did you find least valuable about the event? • Were the mentors encouraging and helpful? • How would you rate your mentors? • Did the help you received answer your questions? • Was the venue and time optimal?
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#3: Collaboration with Outside Organization
Academic Partners • Example: Seed Capital Fund partners with the
“Student Sandbox” (Syracuse, NY)
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Incubators • Example: Mid America Angel Network
partners with ECJC (Kansas)
Government funded organizations
• Example: Seed Step Angels partner with I2E (Oklahoma)
#3: Peer to Peer
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Ariel Savannah Angels and Georgia Southern University • 6 entrepreneurs, 1 facilitator • 6 month duration • 2 x potential investments
#3: Collaboration with Outside Organization
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• Advantages: • Requires less management by the angel group • The organization generally covers the costs • Tend to be more formalized process
• Disadvantages: • They don’t exist everywhere and sometimes require funding (grants) • Can lead to more complicated scenarios
Best Practices Summary • Advertise! • Think about your brand
• “Don’t want to send the message to top level entrepreneurs that your group accepts B players” - James Geshwiler
• Set expectations • “Don’t expect to find the next Google” –Richard Morganstern
• Mentors training • Provide honest yet constructive feedback
• “Critical feedback delivered with compassion is the best” – Ron Weissman
• Capture feedback right away
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Next Steps ARI wants you…
• …to try out a new mentoring style: • 1 on 1 • Mentoring Event • Peer to Peer
• …and share the outcome: • Feedback • New deals
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Thank you
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• Interviewed 15 Angel Groups Across the Country • Mid America Angel Network, Joel Wiggins, Kansas • Seed Step Angels, Michael Kindrat-Pratt, Oklahoma • Ariel Savannah Angel Partners, Ray Wenig, Southeastern USA • Seed Capital Fund of CNY - Nasir Ali, Central New York • Band of Angels Ron Weissman, San Fancisco Bay Area, CA • Life Science Angels, Allan May and Sunil Rao, San Francisco Bay Area, CA • Golden Seeds Boston, Leticia Richardson, Boston, MA • Sand Hill Angels, Jim Connor, San Francisco Bay Area, CA • Hub Angels, David Verrill, Boston MA • Tech Coast Angels, Richard Morganstern, LA, CA • Golden Seeds NY, Robert Delman, New York • Blue Tree Angels, Joe Barron, Pennsylvania • Sierra Angels, Bob Goff, Reno, NV • Bill Payne. Las Vegas, NV • Common Angels, James Geshwiler, Boston, MA