McStartup

John writes:

What's your take on "pay for present" Angel Groups? We've been asked to present on Friday to an Orange County group who wants a $50 application fee and a $1500 presentation fee. I keep thinking of Hollywood agents that can make me a star for the same figure.

I would welcome a differing opinion, but my take is the same as your take.  Certainly there is not going to be much wrong with a completely nominal fee (say, the $50) just to get the folks that aren't really trying to start a company scared off.  However, the point of presenting is to raise money, not spend it, and if you are looking at Angel investors, you are very likely in the earliest stages of a company when you are least likely to be able to afford anything like $1500 (and I've seen more).

I've sometimes seen these wrapped up in a broader conference, where you pay for a little table/booth, make your pitch, and get to watch other pitches.  THAT may well be worth it.  I wouldn't really expect to raise any money in that type of forum (too much noise), but paying to see other people give pitches while you have a seat in the audience is a very valuable experience.  You'll quickly see what works, what doesn't, and just how crisp your presentation needs to be.

In general, I'm not a huge fan of presenting to angel groups, as I'd much prefer to talk to the individual angels, even if they ultimately participate as a group.  There's too much risk of one sour-apple driving the whole conversation negative in those pitches, so if you can do it, try to meet with just one or two of them at a time.

That said, presenting to an angel group is better than not presenting to anyone at all, but I wouldn't expect to pay to do it.

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