In this episode of Investor Connect, Hall Martin hosts Angela Lee, founder of 37 Angels, a community designed to activate investors through comprehensive training with a mission to diversify angel investing. Angela shares her background as a former entrepreneur and a Columbia Business School professor, highlighting that 37 Angels seeks to bridge the gap for those transitioning from entrepreneurs to investors. The organization offers boot camps that teach budding investors the intricacies of deal flow, due diligence, term sheet negotiations, and startup valuation. They examine around 2,000 companies annually but only invest in 10, maintaining a clear focus on efficiency, transparency, and empathy towards founders, drawing from their own entrepreneurial experiences.

The discussion further explores how 37 Angels navigates the post-pandemic investment landscape, emphasizing the extended distance between founders and lead investors and the increasing interest in liquidity. Despite such challenges, the network boasts a high success rate with multiple IPOs and acquisitions from their investment portfolio. Angela underscores the importance of their commitment to realistic and humane dealings with entrepreneurs, as evidenced by testimonials, with 75% coming from founders they did not fund. The group aims to guarantee a funding decision within four weeks, a timeline rare in the angel investing space. Angela also addresses the broader role of diversity within angel investing, specifically noting that 37 Angels was created to tackle the gender disparity in the sector. Although there's been progress, Angela acknowledges the ongoing need for improvement, as only a small percentage of VC and angel funding currently goes to women founders. She stresses that while their investment criteria are neutral, the investor community within 37 Angels predominantly consists of women, further bolstering diversity on the investor's side.

Looking towards the future, the episode delves into evolving investment models and the integration of AI in streamlining the investment process. Angela mentions how AI can assist in initial screenings and sorting of potential deals, saving significant time for investors. She highlights the growing trend of alternative financing methods like venture debt and revenue-based financing, which offer viable options beyond traditional equity investments. This innovative spirit aligns with 37 Angels' mission to support diverse pathways in the startup ecosystem. Tune in to gain insights from Angela Lee on the dynamic, collaborative, and forward-thinking environment that 37 Angels fosters.

Visit 37 Angels at www.37angels.com. Reach out to at www.linkedin.com/company/37-angels, and on Twitter www.x.com/37angelsny.

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