John Stroppa’s Alternate Funding Strategies

On July 21, 2014, John and about a dozen persons meet in the classroom at HackerDojo. Starting promptly at 6pm, a few people were late. None-the-less, John pressed through giving his experience – drawn from his successes and exits in the video game industry in Vancouver, BC, Canada.

John outlined six (6) methods for capital besides bootstrapping or venture (or seed) capital, in short — without giving up equity.

    1. Strategic / Ecosystem or platform monopsony – in which a player needs a product or service by which they can continue to enhance their market position. An example is a search engine for walled gardens. A9, for example, started as a generic search engine, now it’s largest customer and investor is Amazon.
    2. Sponsored – sponsoring is a great to jump start a business. In this model another company or organization would pay to use your product for a demo or publicity event. For example, Coca-Cola might use your telepresence avatars for an international youth event.
    3. Factored – With this method, it does feel a bit like a pre-sale, but infact the money is fronted on expected sales. Also other terms are given, such as early exclusive sale or access to the product for a given period. An example would be a retailer that expects to sell other products with the early release of a game. As such, money fronted is drawn from the pre-sale until the money is “factored” back. You could also see it as a loan, payed back from sales.
    4. Philanthropic – An example of this is a large event being sponsored by a philanthropic organization that decides it needs some sort of unique service, such as an online game.
    5. OEM/White label – create a generic product for an industry. A good idea is doing want ads for electronic magazines, or monthlies that have turned to the web; such as trade magazines.
    6. Crowdfunding/Crowdsourcingkickstarter, indiegogo, fundable

Google: Crowdfunding

Crowdfunding.com lists – gofundme.com, kickstarter, indiegogo, youcaring.com, causes, giveforward, crowdrise, fundly, firstgiving, fundrazr

Forbes.com Top 10 Crowd funding websites kickerstarter, indiegogo, crowdfunder, rockethub, crowdrise, somolend, appbacker, invested.in, quirky (AngleList is not a crowdfunding website contrary to what the article implies.)

Angle Investors Lists

blue_angelsThe first three (3) links are based on this cbinsights report:
https://www.cbinsights.com/blog/top-angel-investors

Biz Journals (SJ Mercury) writes about the report:

Here are CB Insights’ top 20, which is 1 percent of the 2,000 angels it studied. One caveat is that the study only looked at a relatively small slice of the actual number of people in the U.S. who have made angel investments, which is estimated to be about 756,000.

 

20 Most Active Angel Investors
http://www.forbes.com/sites/tanyaprive/2013/12/16/20-most-active-angel-investors/
Marc Benioff, Ashton Kutcher, Jack Dorsey – see who made the top 20 Angels list
http://www.bizjournals.com/sanjose/news/2014/06/25/marc-benioff-ashton-kutcher-jack-dorsey-see-who.html?page=all
Celebrities among the top 20 angel investors
http://www.bizjournals.com/sanjose/gallery/48411?r=http%3A%2F%2Fwww.bizjournals.com%2Fsanjose%2Fnews%2F2014%2F06%2F25%2Fmarc-benioff-ashton-kutcher-jack-dorsey-see-who.html

  1. Naval Ravikant
  2. Tim Ferriss
  3. Esther Dyson
  4. Ashton Kutcher
  5. Marc Benioff
  6. Jack Dorsey
Need to Find Angel Investors? Start With this A to Z List
http://www.udemy.com/blog/top-angel-investors/

  • 55 Angels listed
The 50 Early Stage Investors In Silicon Valley You Need To Know
http://www.businessinsider.com/sv-angel-50-2012-7
  1. Marc Andreessen
  2. Mike Arrington
  3. Marc Benioff
  4. Michael Birch
  5. Jim Breyer
  6. Paul Buchheit
  7. Steven Chen
  8. Jeff Clavier
  9. Ron Conway
  10. Adam D’Angelo
  11. Jack Dorsey
  12. Tim Draper
  13. Josh Elman
  14. Paul Graham
  15. Seth Goldstein
  16. Georges Harik
  17. Kevin Hartz
  18. Rob Hayes
  19. Reid Hoffman
  20. James Hong
  21. Ben Horowitz
  22. Charles Hudson
  23. Mitch Kapor
  24. Jawed Karim
  25. Manu Kumar
  26. David Lee
  27. Max Levchin
  28. Ben Ling
  29. Joe Lonsdale
  30. Mike Maples
  31. Marissa Mayer
  32. Dave McClure
  33. Dave Morin
  34. Chamath Palihapitiya
  35. Sean Parker
  36. Mark Pincus
  37. Shervin Pishevar
  38. Keith Rabois
  39. Naval Ravikant
  40. Kevin Rose
  41. Chris Sacca
  42. David Sacks
  43. Joshua Schachter
  44. Eric Schmidt
  45. Aydin Senkut
  46. Tina Sharkey
  47. Biz Stone
  48. Jeremy Stoppelman
  49. Garry Tan
  50. Peter Thiel
  51. Evan Williams

Blue_Angels_NAS_Jacksonville_Air_Show_2717

The Top 20 Angel Investors

angel_devil500.co with cbinsights.com narrowed down a host variables. They open with:

We analyzed over 2000 angel investors on factors such as network strength, rate of follow-on investment, # of exits, brand and more.

Then they create three (3) lists.

  1. Top angel investors by Network Centrality
  2. Top angel investors by Follow-On Rate
  3. Top angel investors by Investor Mosaic
  • Network Centrality literally means how many people they know and how well are they connected.
  • Follow-On Rate means how well they were able to get additional funding.
  • Investor Mosaic includes when they entered and how they exited. In other words, how go could they guess on a startup.

The links below to Angels open to Wikipedia, go to the blog article to get more information.

The top five (5) for each list

Network Centrality

  1. Alexis Ohanian
  2. Max Levchin
  3. Garry Tan
  4. Marc Benioff
  5. David Tisch

Follow-On Rate

  1. Bobby Yazdani
  2. Larry Augustin
  3. Matt Coffin
  4. Ashton Kutcher – yes the actor
  5. Gil Penchina

Investor Mosaic

  1. Naval Ravikant
  2. Joshua Schachter
  3. Paul Buchheit
  4. Jason Calacanis
  5. David Tisch
The Top 20 Angel Investors
http://500.co/2014/06/20/the-other-1-ranking-the-top-20-angel-investors/
MOVED without redirect to
http://500.co/the-other-1-ranking-the-top-20-angel-investors/
500.co moved the article again; here it is as cbinsights:
https://www.cbinsights.com/blog/top-angel-investors