New York Angels, joined by like-minded counterparts, visited Orange County”™s Business Accelerator to meet with its entrepreneurs at a forum hosted by Upstate Venture Alliance of New York.
Bankers, accountants and lawyers, angel investors and venture capitalists from the tristate area mingled with one another and met with startups, then regrouped at Homewood Suites at Stewart International Airport for an overview of the afternoon”™s breakout sessions with entrepreneurial hopefuls.
Daniel Pemberthy, chief financial officer and executive vice president of Rand Capital and board president for UVANY, told them their  first step should be “to find a legal firm that focuses on small business ”“ it”™s a great place to start.”
UVANY has invested more than $1 billion in capital for startups since its inception.
Brian Cohen, New York Angels”™ chairman and  keynote speaker, told the audience of 75 he”™s always been an entrepreneur first. “My college professor told me that working for someone else is the closest thing to slavery ”“ and I”™m in it to make money.”
New York Angels, which has invested $45 million since its inception, has seen a boom of new companies in New York City, “where most aren”™t ”˜cooked,”™ but they get financing because it looks cool,” Cohen said.
Though a losing proposition nine times out of 10, angel investing has become “pop culture,” he said. “As a result, many startups not worthwhile are getting funded. The money is following the kids pouring into the city, where a new company is born every minute” and statistics show more than 90 percent of new businesses fail within the first two years.
Right now, Cohen and his colleagues are scrutinizing an iPhone attachment that will give its camera the ability to take a picture with a 360 degree angle. “But do we want to invest in this?” Cohen asked. “We”™re taking a look.”
Cohen had some feedback for the startups he and other angels met at the OCBA.
“The entrepreneurs I spoke with were not prepared ”“ no slide deck, no clarification of financials ”“ they need to get their rigor much higher if they want financing.”
How did Michael DiTullo, managing director of the New Windsor incubator that opened in 2009, react to Cohen”™s observation? “His comments regarding the accelerator were complimentary in terms of our facility and our work with our entrepreneurs … he told them angels are not interested in their past, only their future. They needed to hear that.”
New York Angels, now in its seventh year, has invested close to $50 million in startups. “Of all the money invested in startups, 90 percent of it comes from angels, not venture capitalists. We are active investors and looking for other smart angels to join us, because smart money goes after smart deals.”
Tinterest in California”™s Silicon Valley is one of New York Angels”™ success stories.
“It takes an average of nine years initial investment to liquidity,” said Cohen. “When you are investing that kind of time and money, you do it wisely.”
“The networking opportunity and subsequent presentation were both informative and interesting,” said Richard Spisto, owner of Design Group in Central Valley. “I”™m looking forward to the next forum.”
