Mossy Ventures: Building angel investors and funding startups around the world

Mossy Ventures is an investment firm that runs angel investing programs, conferences, and events around the world. Through our programs, angel investors learn how to identify good investments and work closely with multiple startup businesses on their path to seeking investment. Startups learn how to put their best foot forward when asking for investment and get valuable networking time with new and experienced investors. Check out our programs, events, workshops for investors, startup companies, and entrepreneurs.

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About Mossy Ventures

In 2012, the Seattle Angel Conference had its start. Beginning with just one local angel conference, Mossy Ventures has bloomed into an investment firm with multiple programs around the world. Our goal is to help people build the tools, skills, and processes that enable them to make a positive impact in the world. Each of the Mossy Ventures angel investment programs teach investors how to angel invest and identify good investments, therefore growing a healthy angel investing ecosystem. At the end of each program, one promising startup receives an investment of around $200K to aid in the growth and success of their startup business.

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Angel Conference investing funding and networking event

Overview

Angel Conference for startups seeking funding to start a business

The process of an economic arc

Entrepreneurs are everywhere. There are many programs to support the development of early entrepreneurs. However, there is often a problem with funding for growth. This causes early startups to leave their community and move to funding centers. Often in any community there is the wealth available to fund the early stage companies, it is just not activated.

We work to strengthen early pre-seed companies and at the same time create a gateway for new Angel Investors in a community. The Angel Conference model provides experience and perspective for the new investor. It is like an MBA for new Angel Investors.

Along with the Angel Conference, we run auxiliary programs like Open Coffee and Lean startup to build more focused and effective startup founders.

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About angel conferences

An Angel Conference is a 3 month series of weekly meetings that start with 60+ pre-seed startups as well as 40 investors, which then ends with one of the 6 finalist companies getting selected for investment.

This program is preceded by a series of workshops that help to build the vocabulary of the new investors and startups. It covers topics such as Deal Terms, Financial projections, Due Diligence and Pitch feedback.

For a community to support an Angel Conference, we need to have local champions who agree to be the manager for the investment. Around these lead investors we gather 40 investors who are willing to spend the time and energy to evaluate and engage with the companies. In the end, we have raised a $200K fund, which is invested into one of the companies.

All of the companies get feedback on their efforts, which makes them stronger for the next step of their fundraising. All of the investors get a chance to look at the details of many companies, giving them a unique perspective on the state of the Pre-seed company ecosystem.

This Angel Conference program is focused on growing skills and capacity among a community of Investors rather than selecting a great investment. We look to grow new investors who then move on to other groups in the ecosystem which build strong portfolios for the investors.

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John Sechrest attending an investment conference event

Enter your company in the APIS Health Angel Conference to win funding for your health startup

Types of angel organizations

In the decade that we have run the Seattle Angel Conference, we have been able to make a significant impact on the investing ecosystem. All of the Angel Groups in Seattle currently have alumni from our program. As we move to new ecosystems, our goal is to grow Angel funding mechanisms in each location.

There are broadly 5 kinds of Angel Groups:

Angel Network, where the group works to build deal flow, but the companies come first and the investor money is an individual choice that comes later.

Managed Funds (also known as Micro VC’s) have a gathering of funds at the beginning and a few people as “General Partners” who make the decisions on which investments to make.

Passive Funds where the funds are collected, but the decision for the investment is tied to someone else's action (If Joe invests, we will match him on the investment).

Active Funds where the funding comes first, and all the work and decision making is done with a democratic engagement of all the investors

Event Funds have an Active Fund structure, but also have a specific date that the investment is decided. The Angel Conference model is one form of an Event Fund.

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Things we know about Angel Investing

The great thing about Angel Investing is that it is uncorrelated with other asset classes like stocks or real estate. It has a few strange features that people need to be aware of.

First, this asset class is ill-liquid. That is, it is stuck in the investment until the end. It is hard, if not impossible to get out of an Angel Investment once it is made

Secondly, the probability of a single investment returning funds is low. We expect on average, that of 10 investments, 30% will go to zero, 30% will return less than you put in. 30% will return a little bit. But 10% will return a lot, representing 70% of all the money returned. This is straight up a 60% failure rate. In order to succeed, you need to build a portfolio that includes at least 20-40 companies.

Further, while we can identify companies that have significant failure points reasonably well, we are particularly bad at picking winners. So good companies that you have done reasonable due diligence and review still will fail at a significant rate.
However, the process of engaging with the companies, supporting their progress and supporting new Innovations can lead to a significant return on investment.

Every local community will have a stronger, more effective local community if they engage in the innovation ecosystem and grow local startups with local wealth.

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Attend the Seattle Angel Conference for your chance to win funding for your startup

Learn more about our programs or how to participate

Mossy Ventures has a wide variety of programs for new and experienced angel investors and startup companies looking for funding. Each program has its own workshops and events for angel investors and startup businesses.

Calendar

Check out the calendar of events for all of our angel investment programs.

Testimonials

See what our participants have said about our angel investment programs.

Lukas-Karim Merhi --BIT/TENZR
"SAC mentorship and diligence helped refine BIT/TENZR company strategy and introduced us to the PNW investment ecosystem. Not only did their due diligence process and report accelerate securing additional funding from other notable Angel groups but played a key role in supporting our US expansion plans."

Elaine Werfelli: Investor
Data Deity, Entrepreneur
"I have been participating in the Seattle Angel Conference since SAC VII and I always learn something new, advance my investing thesis, get introductions to many new local start-ups, diversify my portfolio and meet new Angel colleagues... and have a fun time doing it! If you are interested in learning more about Angel Investing, come check out SAC and if you are an entrepreneur seeking funding, we are interested in hearing more about your startup!"
Sirisha Adimatyami: Founder, Innovosens
"Innovosens entered the inaugural cohort of Apis Health Angels. Although Innovosens didn’t make it to the Finals, I enjoyed participating. All the companies were great, and getting to know the fellow companies was very exciting! I am thankful for the opportunity! I will need your suggestions and support and will stay in touch and look forward to any further opportunities to pitch. While I am still fundraising, I want to share the good news that I have incorporated, already gathered $500k from different Angels, and continue with the process. Thank you once again!"
Chelsea Carter - Investor, Fund Manager
"I was fortunate to find SAC early on as I learned about investing. SAC provides some of the most comprehensive "learning by doing" opportunity I have seen, in addition to the group having the support of active investors in the larger investing community in Seattle. It is without a doubt the best way I have found to gain a lot of knowledge and experience quickly (though one can never stop learning about this space!) and meet many people who want to grow the investing community in Seattle. Sure, one could easily join a syndicate - but you don't get the same focused discussions or experience digging into early stage companies that SAC provides."
Elliot Fischer - Curi Bio
"Glad to hear you're planning on expanding the Seattle angel community by launching a new forum for angel investment - we (Curi Bio) had a great experience with the Seattle Angel Conference, thanks in large part to John."
Alex Alviar - Investor
“I love working with such a diverse and talented group of people. We make better decisions together."
Julie Schlosser - Journey
"Being part of the Seattle startup community (both SAC and Apis Health Angels) has opened up so many professional opportunities. Advising and mentoring founders is not only fulfilling, it's helped me refine my investment thesis and become a stronger leader. A structured program like those that Mossy Ventures runs is essential for getting the basics and then continuing to grow."

FAQ

Find out answers to your burning questions in our frequently asked questions about Mossy Ventures and angel investing.

What is Mossy Ventures?

Mossy Ventures LLC supports Angel Conferences like Seattle Angel Conference and the Apis Health Angel Conference.

What is an angel conference?

An Angel Conference is a program that teaches Angel Investing by doing an Angel Investment. It is the "See One, Do One, Teach One" model. Angel Conferences have been running since 2002. They were started in Portland by the Oregon Entrepreneur Network. The model has expanded since then to other states and other countries.

Can I become an angel investor?

An Angel Investor is someone who invests their own money into an un-registered startup. This is allowed through an SEC exemption for "Accredited Investors" in Reg D 506(b). To be Accredited, you need to have an Income of $200K or $300K with your spouse , or you need to have a networth of more than $1M (not including house).

To be a "good" Angel Investor, you need to understand about the structure of companies, how the team works, how the financials are being managed and many of the details of the business. You need to also understand how a portfolio of 20+ companies can be created that makes up for the risk associated with early companies that are just starting out.

A good place to start is to read the book by David Rose called "Angel Investing"

If you are not "Accredited" (yet), then you might look at Equity Crowdfunding as a pathway.

What kinds of companies do you look for?

Angel Conferences look for companies that are very early. However, we want them to be more than just an idea. We want to see evidence that the team can work together on a business and that the market cares about the result. This traction for the team often looks like revenue and growth in revenue.

Angel Conferences have no sector bias, so it is not just for tech companies. However, they need to be growth companies that have a pathway to making a significant change in valuation and a pathway to paying back the investment.

What terms do you invest with?

Because the types of companies are so very different, the terms are different as well. We are looking at early companies that have typically not taken outside investment before. If the company is solid, has good growth in revenue and has a round less than $1M, it is likely we will find a priced round. About half of the time, we use a simple convertible note agreement. We are not particularly fond of any of the SAFE agreements. View our convertible note term sheet.

Can the public watch the angel conferences?

Yes. We want the community to understand how Angel Investing works. Both for those who are Accredited to evaluate engaging in the asset class, and for startups that are considering taking outside money to understand how the process works. The final event is done in public.