SE Angels Conference 2008, Savannah, GA

I’m in Savannah, Ga as I write this at the 2008 Southeast Angels Conference. 16 angel groups, 8 states represented (and D.C.) and 75+ individual angels from all over the Southeast are attending Wednesday through Friday. (ATA hosted the first SE angel group “meeting” about 5 years ago and only a handful of angel groups in the SE even existed.)

John Huston, Chairman of the Angel Capital Association, gave the lunch keynote speech on Thursday along with John May, Chairman Emeritus.

The keynote speech was an overview of the Angel Capital Association along with the personal experiences of both speakers. However, towards the end of the Q&A, the topic of conversation quickly turned to the public markets.

Here is the advice of both speakers–of which was agreed upon with those in the room–for companies looking to raise cash from angel investors:

- If you are raising cash now, close on it quickly.

- If you have already raised cash, maintain a (very) good relationship with your investors.

- A majority of angels are still active and are looking for investment opportunities, but at more investor friendly terms.

- Realize that all investors are going to protect their current investments before investing in new companies.

- Individual angels and angel groups are likely to become much more selective over the next 3-12 months, if not longer.

- Angels are long term investors and expect the ups and downs of the public markets. (Many of the angels in the room invested through the 2001-2003 technology downturn.)

- This market will quickly flush out the one time angels and other easy money. Sideline sitters will go away.

- The next 6 months are going to be tough

The above sounds frightening,yes, but we’re looking at 8 companies today and tomorrow. And, I haven’t seen a more excited bunch of investors in a long time. We’ve all gotten to know each other over the last few years, so it’s almost like a reunion.

Here are some more factoids I am picking up:

Angel group syndication (interstate) is growing in the SE and NE by leaps and bounds. For example, a NC group is looking at an Atlanta company which we recently funded. A FL group is looking at a Ohio company, and so on….

A new angel group is forming in GA.

There is talk of a SE “regional” sidecar fund.

Savannah is so much more quiet than Atlanta.