About Atlanta Technology Angels

Lots of talk lately in the Atlanta market about “seed funding”, “angel funding” and “early stage funding”. As happens in these types of discussion, information gets mixed, so I thought it timely to talk a bit about ATA, other wise known affectionately in Atlanta as “The ATA” or Atlanta Tech Angels. We call ourselves “ATA” which is short for Atlanta Technology Angels.

What “is” ATA?

ATA is a member-based private organization comprised of 50 accredited individuals that choose to make private investments in technology companies based in Atlanta or other Georgia communities. Membership in ATA fluctuates between 50-55 members on an annual basis. We’d love to grow to 60-65 members, so give us a call or email me!

How does ATA support itself as a group?

Each of our individual members pay a membership fee each year to support ATA. We STRONGLY believe that entrepreneurs should NOT pay to present to a group of investors. We have never done that and never will. Our model is to have a pure investment environment.  The idea is to to be as active and straightforward as possible.

Does ATA have any outside business sponsors?

No. We believe strongly that entrepreneurs should only be presenting to investors. They should not have to work to understand who the investors are in the room when they are presenting. 100% of any guests at ATA meetings are prospective members, entrepreneurs or are otherwise associated with the Georgia technology community or the local, regional or national investment community.

Knox, are you a member of ATA?

Yes, I am. I joined ATA in 2001 and I have invested in 9 companies since 1999. I just invested in my 10th–Global Crypto Systems. I am a paid up member for 2008!

I was asked to take over as Managing Director in 2002. I promised the BOD that I would stay for one year.  6 years later, I am still here and I still love it.

Why does ATA only invest in technology companies located in Georgia?

- Because most of the individuals in ATA are either from Atlanta or Georgia and have had success in Atlanta or Georgia based companies.

- Because their are PLENTY of opportunities in Atlanta and other parts of the Georgia that are worthy of private investments by ATA members.

Do most of the companies that ATA invests in go on to receive venture capital funding?

Yes. Approximately 90% of the companies ATA invests in receive venture capital funding within 12-24 months of initial funding. I think this is good. It helps grow promising companies within Atlanta, it keeps promising companies IN Atlanta, it helps expose Atlanta to the outside investment community, and it can generate large returns for the angel investors–which can then be reinvested into the Georgia community. Yes, we actually thought this through when we started ATA in 1999.

However, the market is changing. We now have such a large number of serial entrepreneurs within ATA, that many are starting and funding their own new companies. This is a huge step for Atlanta. To have 2nd & 3rd generation entrepreneurs who have been successful to now fund outside companies as well as their own companies is a huge leap of faith for the Atlanta  tech startup market.

How much does ATA invest annually?

Depending on market conditions, between $2M-$6M annually. The quantity is not always that important to us. The quality of the opportunity and the quality and passion of the entrepreneur is important to us. Have “fire in the belly” and we’ll pick up on that and get just as excited as you.

How many investments does ATA make annually?

Depending on market conditions, between 2-8 annually. We have invested in as many as 12 companies in one year (2000–go figure that!) or as few as 2 (2003-technology nuclear winter).

We’re on #4 so far in 2008, having just funded Global Crypto Systems and working on closing another investment next week. I personally invested in Global Crypto.

Does ATA only invest in Georgia Tech or ATDC companies?

No. This is a common misperception in the Atlanta community. For example, Global Crypto is not an ATDC company nor is it Georgia Tech IP. However, it should be an ATDC company (hint, hint). We typically invest in companies before they are accepted to ATDC. In fact, we try to help companies get into ATDC. We know the ATDC folk very well and work with them in tandem identifying promising Georgia companies. We’ve been around long enough to see what companies are headed to ATDC, so we generally are exposed to them before they are accepted into ATDC. If we do miss a company before they are accepted into ATDC  (which does happen), we generally find that they are too expensive after the fact for us to invest in (topic for another discussion?). This is not a criticism, just a fact.

As for VentureLab, we lovelovelove to see the really early IP out of Georgia Tech. It’s not always immediately fundable, but we try to engage early and help the wonderful VentureLab staff as much as we can. Stephen Fleming has made HUGE strides with VL in his tenure there. My hat is off to him.

We see many opportunities from the overall Atlanta market, but the introduction of Capital Connections, TAG/GRA Business plan competitions and StartUp Riot, etc have been wonderful to see and have increased opportunities headed our way. I believe the many Atlanta entrepreneurs in the local startup market are finally getting to know each other.

Does ATA only review 2 companies each month?

We don’t look “at just” two companies each month. We probably look at 15-20 companies each month and consciously choose 2 companies to formally present to the ATA investors at large each month. One of the worst things you can do to a company trying to raise capital (or look for employees or trying to understand how to grow, etc) is to allow them to present to a large group of investors without the company being prepared. First impressions count in this arena. So, we try and make sure the company is “ready” for the presentation. If they are not, we work with them to get ready. That may take 1 month or it may take 6 months. Either way, we are going to make sure you are ready.

Will you answer other questions about angel investing or the Atlanta market if I send them in?

Sure. I’d love to. Send them in.

knox.massey at angelatlanta.com