Jon Jacobson: 2008-2009 AoA William H. Gates, Sr. Fellow in Innovation and Entrepreneurship

My position as the William H. Gates, Sr. Fellow in Innovation and Entrepreneurship is structured as a 1-year endowed fellowship through a partnership between the Alliance of Angels and the University of Washington. The fellowship is undoubtedly one of the premier experiential learning opportunities in the country for an MBA student. The position offers unequalled exposure to Seattle’s entrepreneurial community as well as access to the organization’s accomplished members as mentors, ultimately creating a truly exceptional professional development opportunity. I feel as though I put the entire breadth of my business education to work with each company I coached and screened, and looking ahead to a career in the technology sector no other position could have offered me better preparation.

I would like to think that in my 13 months here I have been able to offer up to the entrepreneurial community at least as much as this opportunity has given to me. I conducted clinics for about 100 aspiring entrepreneurs on pitching business opportunities to investors, met with over 100 companies to help with their business plans and presentations, and coached roughly 30 companies through the AoA funding process. Given the value of this fellowship to me, though, I hesitate to claim that the scales are even close to balanced. However, I can promise you that I did my best and that Seattle’s angel investors and entrepreneurs will be in excellent hands with next year’s fellow.

I would like to offer my sincere thanks to the following people who have added so much to my time at AoA: My colleagues – Vandan Parikh, Rebecca Lovell and Greg Huey; The AoA staff – Susannah Malarkey, Katy Tollefson, Amy Bell Rousso and Kristin Osborne; and the AoA membership. My greatest thanks goes out to the entrepreneurs I have worked with this year who taught me more than anyone else. Good luck to you all and I’ll see you around town soon.

AoA Seed Fund 1st Investment: LiquidPlanner

The Alliance of Angels has made its first Seed Fund investment, directing $235,000 to LiquidPlanner, developer of leading-edge online project management software. The investment by the Fund is in addition to a combined $385,000 that AoA members have invested in LiquidPlanner in the last two months, part of a total $1 million in new financing recently announced by the company.

AoA member Geoff Entress, an investor and member of the company’s board of directors said “My original decision to invest in LiquidPlanner was driven by two factors: the impressive management team led by Charles and Jason, and a truly innovative product that takes a completely new approach to project management software. I’m sure this combination of innovative offering and quality leadership, plus the great customer traction the company has been able to achieve in such a short time, is the reason so many AoA members and the Seed Fund were enthusiastic about this deal.”

The AoA Seed Fund considers financing deals in which a minimum of two AoA members, including an identified lead investor, invest an aggregate of at least $100,000. Alliance of Angels announced the Fund’s official launch in May. To date, it has raised $4.4 million to invest alongside individual angels in companies coming through the AoA program that meet the criteria for Fund investment.

Welcome Greg Huey!

Alliance of Angels is thrilled to welcome new Program Director Greg Huey, whose first day was May 5th.

A former principal at Frazier Technology Ventures, Greg brings more than 10 years of corporate development and investment experience to his new position managing the operations of AoA, one of the nation's most active angel groups based on 2007 and 2008 deal activity.

Greg says that he is "very excited to join the AoA team and build upon the great work that everyone has been doing here. I am particularly eager to work with the Seattle entrepreneurial community again as well as leverage my private equity and venture capital background to serve as an asset to the organization and its members."

Greg can be reached at greg(at)allianceofangels(dot)com or (206) 389-7321.

Congratulations SNAPin - Alliance of Angels Company of the Year

Congratulations to SNAPin - who was honored with the 2009 Alliance of Angels Company of the Year award at the State of Technology Luncheon on Friday May 1st. Brian Roundtree, SNAPin's Founder & CTO, and Bob Lewis, SNAPin's CEO were at the big event to accept the award and took a moment to thank those who helped them succeed - and they even remembered to thank their wives!

SNAPin Software "provides mobile operators with handset self service software to deliver a branded, relevant experience directly to their subscriber's handset". Founded in July of 2003, SNAPin had its first customer trial in June 2005, first customer in June 2007, and first global customer (T-Mobile) in June 2007. SNAPin was acquired by Nuance in October 2008.

SNAPin was one of 5 AoA companies to have exits in 2008: Cleverset (ATG), Insitu (Boeing), Shelfari (Amazon.com), SNAPin Software (Nuance Communications), and The Coffee Equipment Company (Starbucks). All 5 acquiring companies retained operations in Washington.

According to the Angel Capital Association, of its members, Alliance of Angels is the most active angel group. In 2008, Alliance of Angels invested $6.4 million in 36 companies, the second-highest yearly total in AoA’s history.

2009 Office Market Outlook for Entrepreneurs

Pat Pendergast, of Washington Partners, recently took the time to share his 2009 office market outlook with us. In short, Pat expects big changes and substantial opportunities both in Seattle and Bellevue. While real estate is likely to hit bottom in 2009, the economic shocks we have been hearing about will continue to have their effect on the sublease market throughout the year. In Seattle, almost two million square feet of new developments are expected to reach completion during 2009, most of which has yet to be pre-leased at this time. To make matters worse, corporate downsizing at companies like WaMu, Safeco, and Starbucks is expected to contribute an additional two million square feet of space by 2011.


The result in 2009: High vacancy rates fueled by an oversupply of new and existing office space coupled with corporate downsizing efforts of firms located in Seattle. Pat is predicting office vacancy rates near 17% in Seattle (graph depicts trend from 2000-2008, and 2009 forecast):


While smaller in scale, the situation in Bellevue is expected to be similar with vacancy rates approaching 14% (graph depicts trend from 2000-2008, and 2009 forecast):


Depending on whether you see the glass as being half-full or half-empty, this situation may present a unique opportunity.

Either way, Pat has a few recommendations for entrepreneurs:
1. Position your lease for 2010:
- Consider a short term lease
- 2010 may offer a better outlook for future business and the economy

2. Take advantage of the Sublease Market:
- Offers a flexible lease term
- Lowest rates

3. Or for Subleasing Your Space:
- Be pro-active
- Be flexible on term, rate, and rental square footage

Thanks to our sponsors at Washington Partners for sharing their insights with us!

Calling All Northwest Angels: Join AoA for the 2009 Angel Capital Association Regional Meeting!

The national organization of angel investor groups, the Angel Capital Association, will convene its northwest regional meeting in Seattle on February 24th. Accredited investors from the region are invited to join host Alliance of Angels to discuss trends in angel investing and a special workshop featuring tips for lead investors.

The morning session will feature a presentation by Sarah Dickey from the ACA, who will share the latest angel group statistics and trends. Participants will also hear the latest news on regional investment programs, including updates from Bruce MacCormack, chair of Bellingham Angel Group and David Verrill, founder of Boston Hub Angels and chair of the ACA Syndication Committee. The morning will conclude with a panel discussion, “Angel Investing in a Downturn,” in which experienced angels, including Mike Crill, managing partner at Atlas Accelerator, and angel fund manager Basil Peters of the Vancouver and Bellingham angel groups, will offer their perspectives on the impact of current economic climate on startup companies and investors.

The afternoon will be devoted to a lead investor clinic presented by Alliance of Angels’ most active and experienced deal leads, including AoA program chair Dan Rosen and Geoff Entress, managing member of Rolling Bay Ventures. Participants in this interactive, case-based workshop will gain insights into syndicating a consortium of investors, conducting due diligence; negotiating term sheets; and investment stewardship.

Members of ACA enjoy the full day of programs on February 24th and are also invited to attend an exclusive networking reception the evening of February 23rd for $125. Half-day registration for ACA members’ choice of the February 24th morning or afternoon session only is $75. Members of Alliance of Angels are also eligible for a special rate.

Accredited investors who are not members of ACA may attend the full day of programs on February 24th for $175, or choose to attend either the morning or afternoon session for $100.

Don’t miss the chance to connect with fellow angels and stay on top of best practices in early stage investing. Register today by calling Katy Tollefson at 206.389.7259.

Surviving the Downturn: Advice from Seattle-Area Firms

New on Xconomy! Read about the November 20th Alliance of Angels entrepreneur roundtable in "Surviving the Downturn: Advice from Seattle-Area Firms Atlas Accelerator, Geospiza, and Mercent." View the article here.

Thank you to our panelists! Eric Best of Mercent, Mike Crill of Atlas Accelerator, and Rob Arnold of Geospiza; and thanks to our moderator David Caffey of Xconomy.