Frank,
It's nice to hear so much optimism from both you and EBAN President Brigitte Baumann. Given the dictionary definition of an optimist being one who anticipates the best "possible" outcome; I'm inclined to always make the effort to be optimistic.

The keyword being "possible"; once the source of one's optimism is not based in reality, it fits the definition of delusion and not optimism. That's always been the basis of my critical comments in the past. I want to hear reality and not angels asking me to join them in their delusion; wanting me as an entrepreneur to bring them an opportunity that matches their delusion.

By making the effort to be optimistic, I mean to constantly learn and constantly ground my efforts in facts so that I can have a positive attitude knowing that I am not chasing my tail. Even Brigitte mentioned the quality of advice and mentoring that angels give gets better over time as they learn from doing this for a while.

One thing I really enjoyed hearing from Brigitte is that there are angels who understand that there are a finite number of good deals. Until I heard her say it, I was the only one I knew saying it.

Like Brigitte I disagree with those who think because there are a finite number of good deals they need to be closed and competitive against other angels. The only reason to close off communication is to maintain a negotiating advantage over the entrepreneur.

Frank, you keep saying that angels need to pass the hat farther and farther afield. Naturally angels don't help each other by sharing in each others poor or mediocre deals. With limited amounts of funds, we can't have everyone proposing deals to share. Everyone needs to acknowledge the limited number of good deals and focus only on those. Good analysis is necessary and not more reliance on fast pitches.

Nice music at the end of the show.

Frank,

I think you'll like these questions and comments.

Please put your comments into perspective. When you said it took you 15 years to exit your software company, what exactly does that mean? How long did it take you to develop a product(s) that you were able to repeatedly sell with minor upgrades and maintenance? How long did it take those products to attract big clients or enough clients to be able to exit? Were you selling to big clients from the start or did you have to work your way up to it? How many of those 15 years were product development?

Some of the things said by EBAN President Brigitte Baumann reminds me of improvements I have been suggesting for a long time; maybe over a year. President Baumann says young new angels are very important even though they may have little money to invest, because they come from the newer industries that have the potential for the returns that angels want. They have experience and knowledge that older angels don�t have.

One of the problems I�ve written about in the past is that angels and entrepreneurs spend too much time getting together separately. Angels portray themselves as having all the important knowledge and guidance and get together to discuss what areas they think are hot. Entrepreneurs are sent to boot camps where they learn how to pitch. I�ve been saying for a long time that they need to get together and do serious analysis together of potential markets to crack. That way Angels aren�t relying on luck and entrepreneurs are guided to work on important areas right from the start.

The comment made by President Baumann shows us that the Angel communities around the world are educating themselves at such a slow pace that by the time they bring new knowledge into the group it is already old news and too late to take advantage of it.

New Angels with backgrounds in newer technologies are the source of education for older Angels. That means the older Angels must wait for someone to become successful enough with newer technologies to the point that they now have enough wealth to become Angels themselves. That�s an awfully long time. It is probably long enough that by the time a person is able to become a new Angel, there are already newer technologies, processes, and players that are changing the competitive landscape. Relying on new Angels for their education means the Angel group will always be behind in its learning curve.

If Angel groups want the competitive advantage of being up to date with their knowledge, they can�t wait for new people to become wealthy and Angels. The source of information that offers a competitive advantage are the entrepreneurs who are currently working on making it a success, and not after it has already succeeded, because by then the opportunity has passed.

This brings us to another issue I often speak out against. We know the new Angels are not educating the older Angels in the form of a fast pitch. Therefore it is ridiculous for Angels to think that an entrepreneur can bring them a cutting edge competitive advantage that they are going to comprehend just by listening to a fast pitch.

If Angels are going to improve their investment track record, they are going to have to participate in serious analysis and they are going to have to acknowledge new entrepreneurs as part of the source of cutting edge information that offers a competitive advantage.

The President has stated that new people are the source of the needed education. I am saying that waiting for them to succeed delays the required education too long.