Angel Investors Group 'Golden Seeds' invests Smart Money in Women Led Companies
Two weeks ago at the Investor Forum of Astia in New York, I was introduced to several members of Golden Seeds, a group of 130 female angels, who are investing in women led businesses.
I was impressed with the experience, knowledge and focus of these women, and today in the Huffington Post, Angela Haines, Managing Director tells a bit more about the procedure that Golden Seeds follows in getting potential investors to join them and how they select the entrepreneurs they invest in.
She tells: "Over the past few years Golden Seeds, a rare angel investor group devoted exclusively to funding women-led and owned businesses, has poured more than $16 million into 26 companies. These select companies represent a small fraction of the more than 1000 companies that have submitted business plans and the 300 entrepreneurs who have presented at the group's monthly forum, a yield rate typical for angel investors and venture capitalists.
The investment mission is simple: to champion women investors and women entrepreneurs because of a core belief that both men and women in management and in the boardroom together make better decisions and produce superior results.
What's unique about the group is that most of the 130 members, who invest, individually or through a fund, not only provide capital to the fledgling companies but eagerly share their expertise from their own experience as company founders or business executives. They work very closely with start-ups to develop the management, strengthen marketing, share networks, and usually take board positions."
A potential investor who wishes to join Golden Seeds must commit to minimum size of investment per deal of $25,000, while investors are expected to invest a minimum of $100,000 over an 18 month period.
Golden Seeds was founded in 2005 by Stephanie Hanbury-Brown, who after 20 years on Wall St., primarily at JP Morgan, wanted to start an organization to invite women who had already made it to the top in the business world to create an environment to help young women entrepreneurs succeed.
According to the Huffington Post article and the website of Golden Seeds, criteria for a Golden Seeds Investment include:
- women hold a significant (but not majority) equity position in the company.
- a sizable target market, at least one or two major customers in place, and a clear exit strategy.
- focus on three sectors: consumer products, life sciences and internet business.
- entrepreneurs need to do a 15 minute presentation before assembled members.
- Lengthy due diligence by member volunteers before deciding whether or not to recommend funding
- Possible matching investment available.
In the portfolio of Golden Seeds are companies such as Artemis woman, a manufacturer of a unique line of home spa products including natural skin care products and home spa appliances, iiProperty.com, a developer of online systems for residential real estate and Tikatock, a web community empowering any child (5-12) to write, read, and publish books.
Entrepreneurs can submit their business plan online, however, if an entrepreneur comes recommended to the Golden Seeds group, it might just make a stronger case.
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