FROM TORONTO

Is Keiretsu Forum preparing to file suit against Jason Calacanis?

It started last week when Mahalo founder Jason Calacanis fired a shot across the bow of angel groups, like Keiretsu and Maverick Angels, that charge entrepreneurs fees to present. We're talking big fees, too: $3500 for Maverick, $7500 for Keiretsu. Are these angel groups losing sight of their purpose, that being to get early-stage deals funded? Or are they out to maximize short term profits? For more background, listen to my recent interview with Maverick Angels' founder John Dilts.

Contrast presentation fees with the recent trend by angel groups to charge a "bozo filter" (credit NY Angels' David Rose) when entrepreneurs apply. I've pleaded with Tech Coast Angels to implement a bozo filter.

The problem for TCA is that we get so many applications; we're drinking from a fire hose, often receiving more than 400/yr. Our support staff must deal with each of these applications, yet many fail to complete the paperwork, many more don't read our guidelines (we don't fund pizza parlors in Indiana, for example) yet apply anyway. Many groups like the NY Angels and Seattle's Alliance of Angels have found that a $100-150 application fee discourages the faint of heart, saving much grief for their staff. Listen to Dan Rosen's humorous account of how they settled on the precise amount to charge their Seattle-based bozos.

Angel groups not charging presentation fees include the Pasadena Angels, Tech Coast Angels, NY Angels, Band of Angels, Alliance of Angels and most others. To find an angel group in your neighborhood, check out the ACEF Listing of Groups.

Jason's received quite a few comments, check out his blog.