Was it the first kiss? It's been a long time...

So I can't remember the last time I saw a presenting entrepreneur get kissed after his presentation. No, not by the investor, by his wife; still it was just one of many stand out moments at the Founder Institute's graduation in La Jolla tonight.

The Funded's Adeo Ressi created FI to groom entrepreneurs and tonight he graduated 10 teams from the 4 month intensive. Local angels serve as mentors.

The results? Pretty impressive, and romantic at times.

I look forward to sitting in again.

My pal JJ sent around this email:

"I know this is a controversial subject at TCA.  Based on the attached study from University of Chicago Graduate School of Business, National Bureau of Economic Research, University of Southern California, and the Swedish Institute for Financial Research, the answer is the 'horse.'"

Yesterday it was the Don'ts. Today let's balance the scales and end the week on a positive note. When you're crafting your pitch to angel investors there are several keys to getting your presentation right:

1. Click the first slide immediately. Make your introductory remarks on the next slide. By starting the presentation right away we know you know your time limits.
2. Do tell us about your prior startup, even if it wasn't successful. Practice makes perfect and we offer extra credit to you whether or not you succeeded. (Whether we should or not, is another question.)

It was confession time at the recent meetup: I get angry easily. Bored, disappointed, but definitely angry when I have to sit through a lousy pitch. Here you are, with the opportunity you've been dreaming of, and instead of wooing us, you blow it. Who let you in? I want to lash out. Why aren't you prepared?

Before you pooch your next shot at stardom, consider these Don'ts of Pitching:

1. Don't do a demo. Even Steve Jobs can't always get it to work, so you think you will? Save it for later, after we're more interested.
2. Don't show a video. "Look, we've been on TV!" Just tell us, don't make us watch some CNN TV personality gush over your startup.
3. Don't clutter your slides with photos.
4. Don't put elaborate diagrams on your slides. I'm terrified that you'll explain every part of it!
5. Don't do an introduction. "Here's what I'm going to tell you..." No, please. Just get started. This isn't Toastmasters.

There's a meetup nearby in Aliso Viejo; Jason Calacanis is tonight's host and he's encouraged entrepreneurs to gather in 169 cities around the world, simultaneously. That's right, he does a lot of things in a big way! Coincidentally, the Tech Coast Angels have been doing these meet-and-mingle events in Aliso Viejo, too; their next one: June 15th. (If you know Aliso Viejo then you know that this is their single claim to fame.)

Why should you care? People are getting funded from these events. But like everything else in life, there's a right way and a wrong way... let's consider ways to increase your odds of getting funded:

1. Sign up, RSVP. The first event TCA hosted had 100 entrepreneurs show up! This pissed off the venue because no one had any idea there would be such a response. There could've been more angel investors attending, too, and there would've been if we knew you all were coming. Tonight's event is limited to the first 30 to show up. Like they say about the lottery, you've got to play to win; don't get boxed out because you didn't RSVP.

I'm a judge in a local university's business plan competition. Over the past few years I've been involved in different ways in the UC Irvine, Paul Merage School of Business, Business Plan Competition. Last year I was invited by a mentor to critique his team's PowerPoint presentation. They came in 2nd place. This year I'm mentoring a team all my own and enjoying it very much. However, the ideas here come from my role as a competition judge. There's a large field of 15 finalists and I'm a judge for the 4 software sector finalists, so there's no overlap, no conflict with the team I've mentored. Over the past week I've had to review these 4 business plans and fill out an evaluation form. In the process I've found myself lamenting several consistent issues, so I'm going to wrap them all up here in these ten ways to game, I mean win the competition.

#1 Be kind to the judges.

My sister texted, had I pocket dialed her? Maybe I had, so I enthusiastically called her back. "What's new with you?" Well, I'm doing a webinar on term sheets in half an hour. "Term papers?" No, the agreements angels make with entrepreneurs when they invest in their companies. "Sounds boring."

Indeed. As we say goodbye she suggests, "when you have a dry topic, have a little fun with it. Re-title it 'You Suck at Term Sheets'". Who could argue with that logic? Her brainstorm comes from the infamous "You Suck at Photoshop" video series, "they're informative, but style-wise, it's like going to one of those restaurants where the waiters treat you like crap".

Hmmm... I didn't think there was time for re-branding, but her input raised my spirits. I was now up to the task! And why not? I had a dream panel: Katherine O'Neill, JumpStart NJ, Michael Gruber, Cornerstone Angels, David Rose, NY Angels and James Geshwiler, Common Angels. That's a lot of experience, an embarrassment of riches!

And whattya know? It was great! But you missed it. Don't miss the next one in the ACA Syndication Webinar Series: Due Diligence. I know, sounds dry...

I wrote a check today, the first one in quite a little while, for a new startup here in Orange County. I'll share more details about the company and its great promise in an upcoming post, after the deal closes.

Am I a bellwether of a new season of confidence in Southern California?

Why wasn't I writing checks earlier?

Let's take stock...

In reverse order, I wasn't writing checks for new startups in part because I have a large portfolio of early-stage companies and many of them came back for more money last year in pay-to-play rounds. I had to allocate funds to participate in merit-worthy rounds or else, in most cases, I'd be converted to Common and diluted up to 90%; that's an incentive. I didn't participate in all of these rounds; I said goodbye to at least two of my deals thinking I'd rather invest in something new.

So why didn't I?

New York UPDATED

I got out Sunday, but John's there til Wednesday. He was connecting through Munich, that's what screwed up his return plans.

We were all talking about our combined misery, this volcanic black swan that has many of my colleagues from the EBAN Congress in Istanbul unable to get home, not right away anyway. John Mactaggart was the first to react; he'd changed his itinerary from west to east and would escape through Dubai into Australia and get home before his original plan. I was reluctant to start over reacting, perhaps things would settle out by Sunday. That's my nature; I'd play it cool.

I've learned to like Brad Feld's book recommendations. He's got me reading spy novels again. So when he blathered on about Rework, I had to see for myself. At first flip through the pages I was disappointed to see such short chapters; it looked like a general business guide. I set it aside. But then I had to pack something for Spring Break to New York, I gave it another look and I'm glad I did.

Coincidentally, I'm working with one of the UCIrvine teams in the Business Plan Competition, for the 3rd year in a row, if memory serves. My contribution will kick in when we get past the next round and create the PowerPoint pitch, but first they have to write a business plan. Couldn't I just play along and offer some encouragement, some pearls of wisdom? No, because no one reads business plans, especially angels, even less so VCs, I imagine. Who has the time? And the other problem with plans, they're artificial, academic mad dreamings of the future. But these were just my irreverent conclusions, until I read Jason Fried and David Heinemeirer Hansson's early on chapter, Planning is Guessing.

Now I've learned I'm not alone. "Plans are inconsistent with improvisation."

If I could be a student again, there's one professor I'd want to meet: Tina Seelig, the Executive Director for the Stanford Technology Ventures Program, in the Entrepreneurship Center at Stanford's School of Engineering. The next best thing for me was to read her book, What I Wish I Knew When I Was 20.

Maybe I just wish to be 20 again. Come to think, reading her book was like being a kid again; getting in touch with the creative powerhouse within was very stimulating.

Many of my friends are glad to see this interview published, they're hoping I'll calm down now and won't be waving my scribbled copy with the well-worn, broken binding in their faces as I quote favorite passages from Tina's masterwork with the byline A Crash Course on Making your Way in the World.

Show #282 (35:08) Listen

Continue reading to see my mad scribbles in Tina's fabulous book...

With a nod to Garage Venture's Guy Kawasaki and his Top Ten Lies of Venture Capitalists, I offer my Top Ten Lies Angels Tell. When I showed a draft to my angel friend Malcolm, he turned to me and said, "wow, this is really cynical!". So let me acknowledge that first.

1. "That was a good presentation!"
I have to say something positive, but you're not getting me to write a check. The fact is most funding pitches are terrible; they're more product pitches with an appeal for money tacked on at the end. Passion, yes, every entrepreneur has heard by now they must show great enthusiasm for their endeavor, but show me how I can get my money back someday, too. Who will acquire you? Are you going to raise venture capital which will keep me in the deal for 6-7-8-9 years? Or are you aware of the new trend towards early exits? Show me how I can get my money back in 3-5 years and even I'll be saying, "that was a good presentation!".

2. "Fix these few issues and come back in six months."
This is so much easier to say to the entrepreneur instead of "you blew it, you're too early". Worst of all, you mean it when you say it even though you know the chances of an entrepreneur re-entering the process is infinitely small, because next time I see you something will nag at me, "wasn't there something flawed with this deal?" You only have one chance to make a first impression. This should remind you of Life's Not Fair.

3. "We offer more than just money."

It's Spring (almost) so it must be time for a regional angel conference. Angel Capital Association encourages these regional pow-wows and many are just a few years in the making. These smaller conferences have a more intimate feel compared to the mega-events. Here's where I'll be:

Hope all is well and I will look forward to getting together with you in preparation for our "Next Big Thing" in Tucson.

I need to mention two scenarios: my daughter, Claire, in California was forwarded our podcast from Curtis Gunn the new leader of Desert Angels. She was quite impressed.

More interesting, we are finalizing a deal with O******** L*** out of Maryland. (Another of our "out of state", "syndications deals"). We have probably 10 investors for short money but syndicating as part of a $1.2M round.

Am I the last person to watch ABC's Shark Tank?

Thankfully I have better things to do on a Friday night, so through the miracle of TiVo and a rainy Martin Luther King Day, I waded through Episode 106. The popular appeal is easy to see, especially in this episode which was food oriented. I don't know many angel investors interested in food start-ups, the margins are poor.

What struck me was the small amounts the entrepreneurs were asking. What can even the best of them accomplish with $40, 50 or even $150K? Based on the 30+ early stage investments I've made I can tell you: very little. Which means they'll be back for more money, which will be more expensive, if they can get it, because the story won't be so glamorous the next time.

I was also surprised at how several of the investor bids were grabs for most or all of the equity. They'd be shooting themselves in the foot if the entrepreneur accepted these greedy terms, because without sufficient incentive for the entrepreneur, all that hard work without a substantial piece of the upside would eventually cause the entrepreneur's spouse to convince them to drop the whole thing. I'm surprised the investors made these brazen grabs for the whole deal; maybe it's just to add drama for the TV audience. No one at Tech Coast Angels would make such an offer.

It reminds me of the advice Palomar Ventures' Randy Lunn offered once, "never take advantage of an entrepreneur". Not as exciting on TV perhaps, but words to live by if you're a angel investor.

Seattle's Alliance of Angels has had a single executive leading the group for its 11 year history, Dan Rosen. Yes, succession problems come to mind and it reminds me of Duwayne Peterson of the Pasadena Angels who eventually found a successor after many years at the helm, but having strong leadership in an angel group has got to correlate with good deals, good relationships with entrepreneurs and even better returns.

Contrast manager-led groups, like the AoA, Band of Angels, Common Angels, Hub Angels and the NY Angels, versus all-volunteer groups like the Tech Coast Angels: differences come to mind. The manager-led groups are funding more startups this year. As the economic turmoil of the past year has roiled early-stage funding, manager-led groups can react more quickly, implementing changes as necessary. At the NW Regional Angel Summit last February I learned that AoA had already changed their pre-money valuation criteria, only letting in entrepreneurs that complied with the new guidelines; and why wouldn't an entrepreneur listen when 2 out of 3 presenting companies got funded the prior year? Think of the consistency in due diligence, term sheets, co-investing with nearby angel groups and dealing with follow-on rounds; having a strong executive with long term experience would be a great asset for an angel group.

All-volunteer groups spread the responsibilities around, probably a good strategy for long term survival. The succession plan here in LA is now a single year as Chairman. That rotates a lot of talented members through the leadership, creating more angel ambassadors in the local community, but at what cost? A one-year term means there's very little time to learn on the job; by the time you go through a single cycle, say arranging the annual business plan competition at the local university, coordinating a Fast Pitch, setting a plan for the website, and the like, your time is up and out you go onto the blogosphere, at best. Self-imposed term limits come to mind and remember the argument against? That power would shift from elected officials in Congress to the Executive or, worse, the military. I don't know where the angel power has gone, but longer terms for leaders of all-volunteer angel groups would be a step in the right direction.

Bicycling with Inland Empire angel investor John Tillquist the day after Thanksgiving, see route, I asked him what issues he'll bring to the Tech Coast Angels' offsite planning meeting this week. Usually a better listener, let me confess I can't remember more of John's marketing concepts, but it did trigger a mad scribble on my part.

Let's take deal flow. Angel groups in smaller metropolitan areas, like the Desert Angels in Tucson and First Angel Network in Halifax, Nova Scotia see modest deal flow compared with the "drinking from a fire hose" mode, the hundreds of funding applications seen in LA, Seattle, Boston and New York City. There's a different approach in a smaller city with a smaller funnel. When a good deal comes along it's treated accordingly, lots of time can be spent grooming the entrepreneur and polishing the PowerPoints if you only meet quarterly. This more modest deal flow has its advantages: at the less frequent screening meetings these more polished deals may get a warmer reception, something that both the entrepreneur and the angels will appreciate.

Chairman-elect Richard Sudek has sent each of the TCA board members a copy of Spencer Johnson's Who Moved My Cheese prior to our 2nd Annual Offsite Strategic Planning Session at Chapman University. Hopefully the message in the book will lessen the natural resistance to change that an offsite planning meeting is trying to counter. There are so many issues to address, especially since we're a 12-year old organization that's just lost its founder.

Why name this post after Cassandra, the beautiful daughter of Priam, King of Troy? Remember, Apollo gave her the gift of prophesy, accompanied by the curse that no one would listen. Such is the fate of a podcaster after interviewing 265 of the world's experts in angel investing. It's the same when we prognosticate on deals as when commenting on alternative approaches to angel investing in these turbulent economic times, like angel investors everywhere, my opinions are no more valid than any of my fellows'.

I was astonished to receive this somewhat threatening letter from this well known and highly respected Silicon Valley law firm. To me, as a journalist, the letter appears to limit my ability to conduct candid interviews and to report them. Since I am not an attorney, I would appreciate any suggestions from my readers and listeners in regard to this most amazing letter. How would you respond?

Notable commentary: TechCrunch, Why I Laugh by Chris Lindsey, Amateur Hour at James Hatch and Podcasting News.

Who would've thought Wilson Sonsini would threaten a blogger?

They're famously smart people who've contributed hugely to the success of Silicon Valley and the venture capital industry, so why would they kick sand in my face over a split-up at TweetPhoto? Read their complaint below.

Of course, the whole issue is a joke. How do you remove a podcast from the internet?