Payback for Angel Investing

At the Members meeting of the TacomaAngel Network on Wednesday June 10, guest speaker, Professor Rob Wiltbank, revealed his landmark study of Angel Investor Investment Returns in the US and Britain and how they compare to those of Venture Capitalists.

Angel Investors are private individuals who give of their time and money to help new growth companies in ways similar to VC’s, but generally do so at an earlier stage, and for smaller amount than do Venture Capitalists.

Some of his findings:

• Poor returns come back quickly, while big returns can take longer—about 56% of investments returned under 1 times the investment in less than 1 year, about 34% returned from 1 to 5 times the initial investment in about 3 years, 7% returned 5 to 30 times in just under 5 years, and an additional 3% returned over 30 times in about 6 years.


• This produced an average a portfolio weighted return of about 27% which compared favorably to the British 22% and the VC returns of 17% and 15% respectively, before and after fees respectively. The presentation also included a series of returns improving guidelines derived from the study.

Rob also shared key principles from his new and highly praised book on Catalytic Leadership. He was also available to talk one on one with guests and for book signings after the session.

Rob Wiltbank (right) receiving a TacomaAngel Network Pad-folio from Founding Co-chair Larry Kopp (left) in remembrance of his talk.

Rob Wiltbank is Professor of Strategic Management at Willamette University—at the Atkinson Graduate School of Management, a Batten Fellow, and partner of Buerk Dale Victor, a growth stage venture capital fund based in Seattle, Washington. His ground- breaking research includes the first empirical examination of the outcomes achieved by angel investors, and the role of entrepreneurial expertise in decision making

Hansen Passes the Torch

Bjorne Hansen, the TacomaAngel Network Screening Committee Chair was honored before the group of 50 including TAN members, UWT Institute of Technology faculty and Tacoma & Pierce County economic development dignitaries with a commemorative plaque in honor of his exemplary service from 2008 to 2009.

TAN Co-founder Larry Kopp (l) honors Bjorne Hansen as incoming Screening Committee Chair Diane Dolstad presents his plaque. TAN Co-founder John Dimmer (r) looks on during TAN's June meeting.

During the past year, Hansen’s Screening Committee reviewed hundreds of new NW companies, individually scored almost 100 from among those applying for funding to select the almost 50 which were interviewed and coached in person by the full Committee.

Of these, 23 were selected by the Committee to present to the full TacomaAngel Network membership at the monthly meetings such as the one this Wednesday. Since its inception in 2006, members of the non-profit TacomaAngel Network have invested over $3 million in new companies as a result of these presentation forums, and the selection and coaching provided by the TAN Screening Committee.

Hansen will remain on the Screening Committee as an active member. Applications to TAN are only accepted on its website. Its next meeting is scheduled for September 9, 2009.

Cyber Threats Hare Raising

With the assessment by the GAO (glad someone's accountable) that the nation's information security is "at risk" from cyber threats, also comes an assessment on how difficult it is to do non-kinetic cyber activity, like shooting behind the rabbits.

Maj. Gen. William Lord, commander of the USAF Cyber Command (Provisional), statement that: it is easier to get approval to do a kinetic (read "bomb") strike with a 2,000 lb. bomb than it is for us to do a non-kinetic (no "boom!") cyber activity. Lord, who has been nominated to become the AF Chief of Warfighting Integration was speaking to an industry association recently.

The Cyberspace Policy Review is a 76-page report released with a White House announcement that the president will be creating a new cybersecurity office and czar, as well as a privacy and civil liberties official to oversee the government’s cybersecurity plans. The cybersecurity report provides a list of wide-ranging guidelines advising President Barack Obama on how the government should proceed in its national plan to secure cyberspace.

It touches on everything from establishing communication networks for emergency response teams to the role government should play in the protection of critical infrastructure networks and whether or not entities that experience a breach should have to notify governments and law enforcement agencies. Privacy and civil liberties concerns receive a repeated nod, with privacy being mentioned in the report more than five dozen times.

When You Turn 50, Good to be No. 1

For celebrants for Alaska's 50th anniversary of statehood, today's release by the U.S. Census that it is actually #1 - in an unexpected category, deserves attention.

While Alaska ranks second among states for rate (78%) of home Internet access, Alaska led the nation in people who actually access the Internet from any location (home, work, public access), at 76.1%. By comparison, Washington state was fourth (75.7%) in the first category and third (73.4%) in the second category. The national average was 67% for home Internet access.

These figures come from the 2007 Internet and Computer Use Supplement to the Current Population Survey. Look there for a much more extensive database on computer and Internet usage.

Think About IP

Today, you have the opportunity to attend a free - CLE credit available conference on intellectual property crimes and state and federal enforcement actions.

Space is limited! Register Today!

Washington State Intellectual Property Rights Conference:
IP Crimes, Victims & Cases

Wednesday, June 24, 8:15 a.m. to 7:00 p.m.
U.S. Courthouse
700 Steward Street, 19th flr., Seattle 98101

This training conference will include tips on how to develop and refer cases to law enforcement, best practices, and case studies on recent IP criminal prosecutions.

Broadband, But...

The Washington State legislature has taken a tentative step to extend broadband access with its passage of HB 1701.

HB 1701 was written so that the state could capitalize on about $7.2 billion in the Stimulus Bill (American Recovery and Reinvestment Act – ARRA) that is earmarked for broadband initiatives. The legislation says that if specific funding for the purposes of the act is not provided by June 30, 2009, in the omnibus appropriations act, the act is null and void.

Joining in the leadership effort was Sen. Jim Kastama, a recognized advocate in the state Senate for technology issues and technology-led economic development.

Intel Comments on EU Ruling

Paul Otellini, president and CEO, Intel Corporation (the world leader in silicon innovation) today issued the following statement regarding the European Commission decision on Intel’s business practices:

Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal.

We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don’t perform the market acts accordingly.

Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology. The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world’s leading volume manufacturer of microprocessors.

Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we’re in compliance with their decision. Finally, there should be no doubt whatsoever that Intel will continue to invest in the products and technologies that provide Europe and the rest of the world the industry’s best performing processors at lower prices.

More information about Intel and Competition in the Innovation Economy is available at here.

Additional information about Intel is available at their online pressroom and blog.