Source: http://www.google.com/patents/US20020138385?ie=ISO-8859-1&dq=5,583,822
Timestamp: 2015-05-03 10:04:08
Document Index: 161485054

Matched Legal Cases: ['art� 214', 'art� 214', 'art� 214', 'art� 214', 'art� 214', 'art� 214', 'art� 214']

Patent US20020138385 - Matching angel investors with entrepreneurs - Google PatentsSearch Images Maps Play YouTube News Gmail Drive More »Sign inAdvanced Patent SearchPatentsA system to facilitate the matching of entrepreneurs with angel investors on the basis of the angel's investment affinities or preferences. Angel investor preference data is collected in a registration process for angel investors, and data about the entrepreneurial start-up firms is collected in a registration...http://www.google.com/patents/US20020138385?utm_source=gb-gplus-sharePatent US20020138385 - Matching angel investors with entrepreneursAdvanced Patent SearchPublication numberUS20020138385 A1Publication typeApplicationApplication numberUS 09/814,949Publication dateSep 26, 2002Filing dateMar 23, 2001Priority dateMar 23, 2001Also published asWO2002077755A2, WO2002077755A3Publication number09814949, 814949, US 2002/0138385 A1, US 2002/138385 A1, US 20020138385 A1, US 20020138385A1, US 2002138385 A1, US 2002138385A1, US-A1-20020138385, US-A1-2002138385, US2002/0138385A1, US2002/138385A1, US20020138385 A1, US20020138385A1, US2002138385 A1, US2002138385A1InventorsJoe MilamOriginal AssigneeJoe MilamExport CitationBiBTeX, EndNote, RefManReferenced by (13), Classifications (6), Legal Events (1) External Links: USPTO, USPTO Assignment, EspacenetMatching angel investors with entrepreneurs
US 20020138385 A1Abstract
A system to facilitate the matching of entrepreneurs with angel investors on the basis of the angel's investment affinities or preferences. Angel investor preference data is collected in a registration process for angel investors, and data about the entrepreneurial start-up firms is collected in a registration process for entrepreneurs. The collected data is used to create Galt Scores� and Mall Charts� which serve as tools for the angel to gauge the investment worthiness of various entrepreneurial start-up firms on the basis of the angel's criteria. Images(7) Claims(20)
BRIEF DESCRIPTION OF THE DRAWINGS [0014] These, and other objects, features and advantages of the present invention will become readily apparent to those skilled in the art, upon reading the following detailed description, in conjunction with the appended drawings, in which: [0015]FIG. 1 depicts an exemplary method in accordance with the present invention for evaluating entrepreneurial start-ups and matching angel investors with start-up companies on the basis of factors chosen by the angel investor; [0016]FIG. 2 depicts a system in accordance with a preferred embodiment of the present invention configured in the form of an Internet portal; [0017]FIGS. 3A and 3B depict an exemplary determination of a Galt Score� in accordance with the present invention; [0018]FIG. 4 depicts an exemplary method in accordance with the present invention of collecting data from an entrepreneur and matching the entrepreneur with an angel investor in accordance with the present invention; and [0019]FIG. 5 depicts an exemplary method in accordance with the present invention of collecting data from an angel and of matching the angel investor with an entrepreneurial start-up firm.
[0051] In the Galt Score� equation (1), ρ represents the cumulative playbook points. The variable ρ is calculated by multiplying the playbook weighting factors of each element (e.g., shown in FIG. 3A) with the corresponding achievement data (e.g., shown in FIG. 3B), and adding the scores for the various playbook elements. The variable ω represents the cumulative points earned from the life cycle elements, and may be calculated by multiplying the life cycle factors (e.g., shown in FIG. 3A) with their corresponding life cycle achievement data (e.g., shown in FIG. 3B), and adding the scores for the various life cycle elements. The variable β is a benchmark of points assigned by the angel. The variable a is the sum of the affinities which are met by a particular start-up being analyzed. [0052] The right side of the Galt Score� equation (1) [i.e., β−(α�β) ] is the threshold value which is used to filter start-up firms for consideration as potential matches. Those start-up firms which meet or exceed the threshold value may be presented to the angel for further consideration. In the preferred embodiment characterized by equation (1), the threshold value is equal to the benchmark β reduced by a percentage discount α for the angel's affinities which the start-up satisfies. [0053]FIG. 3B depicts Galt Score� achievement data which may be used in developing the Galt Score� of a start-up firm on the basis of the angel weighting parameters of FIG. 3A, in accordance with the present invention. Depending upon the nature of the element, some elements may entail a subjective estimate by the entrepreneur, while other elements can be based upon objective measures of data. In a preferred embodiment, the achievement data is entered by the entrepreneur. Having the entrepreneur enter the achievement data values serves the dual purpose of providing insight as to the credibility of the entrepreneur, as well as reducing the administrative load in tabulating the data used in Galt Scores.� In regard to credibility, an entrepreneur who has listed unreasonably optimistic values for various Galt Score� elements is generally viewed as having a diminished amount of credibility, as compared to an entrepreneur whose data is more accurate or based upon more realistic expectations. It should be noted that, although the achievement data is entered by the entrepreneur in accordance with this embodiment, such data may be verified and/or modified by the system administrator, e.g., the Angel Legacy manager 222. [0054] In the playbook section of FIG. 3B, the number to the left of each playbook element indicates the extent to which the start-up firm has realized, or has achieved, that particular element. In the example shown, the playbook element for the �industry� element is considered to be realized by a factor of 0.6, hence providing the start-up firm with six points for this element (i.e., 0.6�10=6 points). Similarly, the hypothetical start-up firm of the example receives 4 points for the �business model� playbook element because the start-up's business model has been determined to correlate by a factor of 0.8 in FIG. 3B and the element is weighted with 5 points in FIG. 3A (i.e., 0.8�5 =4 points). [0055] In the life cycle section of FIG. 3B, the numbers to the left of each life cycle element indicate which elements that the start-up firm has met, or the degree to which the element has been met. For example, the �1� next to the executive summary element indicates that this element has been met, inasmuch as the start-up has an acceptable executive summary in place. The �0.6� for the completed business plan element indicates that this element is 60% achieved. As a start-up firm makes progress in its development, it achieves more life cycle elements, thus producing a higher Galt Score� point total. [0056] The Galt Score� for a start-up firm is calculated by multiplying the weighting factors of FIG. 3A with the achievement data of FIG. 3B for each element, and then tallying up the elements. The Galt Score� is then compared to a threshold value, i.e., the right side of equation (1). The threshold value consists of the benchmark β, which may be discounted to a smaller value if the start-up firm falls within any of the angel's specified affinities. A start-up firm having a Gait Score� greater than the threshold value is provided to the angel for further consideration, to possibly set up an investment agreement. In a manner of speaking, the Galt Score� 216 serves as a filter for an angel to measure the desirability of specific start-up firms for investment purposes. It should be noted that different angel investors who are each considering a particular entrepreneurial start-up firm will most likely arrive at different Galt Scores� for the start-up firm on the basis of the point assignments made by each angel and their varying thresholds. [0057] Referring again to FIG. 2, the Galt Scores� 216 are used in both the initial matching process as well as the ongoing measurement of life cycle progress as a start-up business meets various milestones. In the event that an angel 204 changes the distribution of points assigned to the playbook and life cycle elements (i.e., changes the parameter weighting), the Galt Score� filter 216 will change accordingly. Hence, the Galt Scores� 216 for various start-ups may change for a particular angel due to filter refinement, or on the basis of accomplishing the life cycle elements. [0058] In a preferred embodiment of the present invention, the graphical progress status representation is provided by Mall Chart� 214. In other words, Mall Charts� 214 provide a graphical illustration of the elements which drive value creation during the various stages of a start-up company's life cycle. An exemplary embodiment of a Mall Chart� 214 is configured to be menu driven in a Windows� environment. In accordance with this embodiment, pull-down menus 270 are provided in order to provide convenient access to various information of interest, such as Term Sheets, the Subscription Agreement, LLC Documents or other material. In addition, �clicking� on each life cycle phase pulls down a menu displaying the elements of a phase. Clicking again on the �phase� opens a project plan schedule, reflecting the time line and tasks associated with the completion of that phase. Completed elements preferably have hypertext links to the applicable document or spreadsheet, e.g., executive summary, business plan and management team resume. Such hypertext links allow an angel to easily review the underlying material or information for an element. Additionally, information of interest to a specific angel could be displayed, e.g., the angel's allocation of Galt Score�, percentage of completion, or the like. [0059] In a preferred embodiment, the Mall Chart� 214 may be tailored by the angel investors 204 of FIG. 2 to include elements of the Galt Score� 216, as well as the start-up firm's life cycle status. Mall Charts� 214 can also provide a capitalization table which reveal valuations of start-up firms at each stage of a start-up's life cycle. This feature may be accessed using a pop-up capitalization button 272 on the Mall Chart� 214 itself. [0060] The Mall Chart� 214 may present various financial projections desired by the angel investor 204. The Mall Chart� 214 is preferably configured to depict financial projections 274, which may be derived, for example, from links to a cash-flow statement and revenue projection from the start-up's financial forecasts. The Mall Chart� may be configured to include one or more of: elements of the Galt Score� reflecting the life cycle status, a capitalization table to facilitate valuing the company at each stage of the life cycle, and links to the cash-flow statement and revenue projections from the start-up's financial forecasts. For example, in one embodiment, �clicking� on each Life Cycle Phase pulls down a menu displaying the likely elements, as defined by the angels 204, of each phase. Clicking again on the �Phase� opens a �Project Plan� schedule reflecting the time line and tasks associated with the completion of that Phase. In addition, an angel investor 204 may tailor the Mall Chart� 214 to reflect the value of an entrepreneur's equity stake in the start-up firm as various life cycle milestones are achieved and funding rounds are completed. Mall Charts� 214 are preferably linked real time with portfolio tracking modules of the angel tools 208 and entrepreneur tools 206 portals. In this way, an angel 204 can remain current on the status of his/her investment, while the entrepreneur 202 is able to concentrate on running the company, hence creating the highest value for the start-up firm. [0061] A preferred embodiment of the angel tools portal 208 of FIG. 2 includes other links to webpages with various features useful or informative for the angel investor 204. One such feature is �test drive� which allows an angel 204 to test drive the application before providing the information to complete the registration process. The test drive feature allows the angel 202, or an angel's delegate, or even a visitor, to anonymously fill out the ranking of points in a playbook and life cycle, for example, by using a synonym or temporary user ID. The test drive information for a particular angel 204 is retained for a predetermined period, allowing the angel 204 to return to the site and become a registered user, or take another test drive. The test drive feature provides a �temporary user� with the number of available matches, if any, after the �temporary user� has assigned points to the playbook and life cycle elements. The �temporary user� could then access a generic list of company descriptions. However, the test drive feature provides a temporary user with only a generic executive summary of a matching start-up company, i.e., no real company name or identification. To gain further information, the temporary user may be required to complete the registration process, including indicating acceptance of the terms and conditions of using the angel/entrepreneur website. [0062]FIG. 4 depicts an exemplary method in accordance with the present invention, from the perspective of an entrepreneur, of collecting data from an entrepreneur and matching the entrepreneur with an angel investor. The method starts in step 310 and proceeds to step 312 where contact is made with the entrepreneur. For example, the entrepreneur could log onto an Internet website which provides entrepreneur/angel matching services, such as the angel/entrepreneur website 200 described in conjunction with FIG. 2. The website has one or more introductory web pages which provide the appropriate information to the entrepreneur for introducing him to the available angel/entrepreneur services. Following step 312, the method proceeds to step 314 for registration of the entrepreneur and collection of the necessary registration information. [0063] In step 314, the entrepreneur is queried for the various information (e.g., Galt Score� elements) and data needed in order to provide the angel/entrepreneur services. In this way, the needed information is collected from the entrepreneur about the start-up firm and also about the entrepreneur personally (this is box 322 for all intents and purposes). After collecting data about the start-up in step 314, the method proceeds to step 316 for calculation of the Mall Charts� and to layout a financing plan. [0064] Once step 316 has been completed, the method proceeds to step 318 in which information about the start-up, e.g., Mall Charts� and start-up description, are entered into a database. When the information for the start-up has been entered into the database, the method proceeds from step 318 to step 320. In step 320, the entrepreneur is asked whether business services are needed. Examples of business services which may be linked to the present invention, or provided therein, include any of the following: the development of a business plan or cash flow management plan, tax planning, legal services, advertising services, or other such services. If the entrepreneur elects to have business services provided or to find out more information about such business services, the method proceeds in accordance with the �yes� branch from step 320 to step 322 where business services, information about them, or links to other sites having business services, are provided. After the completion of step 322, the method proceeds to step 324. Alternatively, if it is determined in step 320 that no business services are needed, the method proceeds in accordance with the �no� branch from step 320 to step 324 for an analysis to compare information about the start-up with the requirements of various angels which may be available to provide financing. [0065] Upon performing the calculations in step 324, the method proceeds to step 326 for an analysis of whether there are any potential angel/startup matches available. That is, it is determined whether there are any startups which meet the desired qualifications of any angels. If there are potential matches, the method proceeds in accordance with the �yes� branch from step 326 to step 328. In step 328 information about the potentially matching startup is provided to the angel. After the angel has been provided with a potentially matching startup in step 328, the method proceeds to step 330 and the angel is asked whether the startup, or startups, are acceptable for investment purposes. In the event the angel opts to accept a startup for financing purposes, the method proceeds in accordance with the �yes� branch from step 330 to step 332. [0066] In step 332 the entrepreneur is notified that an angel has accepted his venture for financing and plans to invest in the startup. The method then proceeds to step 340 where the method ends. [0067] In step 330 if, upon being provided with a list of one or more potentially matching startups for investment purposes, the angel opts not to invest in any of the startups, the method proceeds in accordance with the �no� branch from step 330 to step 334. In step 334 it is determined whether any new angels have been added to the database of angels. The method also may proceed to step 334 in accordance with the �no� branch from step 326 if it is determined in step 326 that there are no potential angel/startup matches. In step 334, if it is determined that a new angel has been added to the database, the method proceeds in accordance with the �yes� branch to step 324 where an analysis is again performed to compare the information for various startups with the desired attributes or requirements that the various angels are looking for in an investment. [0068] In step 334 if it is determined that no new angels have been added to the database, the method proceeds in accordance with the �no� branch to step 336 where the progress of various startups which are in the database is monitored for any change in status. For example, if a startup had reached a particular milestone such as the development of a working prototype, this could be considered a change in status. In step 338 it is determined whether there have been any changes in status or progress made for the start-ups. In the event there is no change in status, the method proceeds in accordance with the �no� branch from step 338 back to step 336 for continued monitoring of such changes in status. If there has been a change in status as determined in step 338, the method proceeds in accordance with the �yes� branch to step 322 where the further information about the start-up in entered into the database. In this way a further analysis can be run in step 324 to compare the revised information about the start-ups with the requirements of potential angel investors. [0069]FIG. 5 depicts an exemplary method, from the perspective of the angel investor, for matching an angel investor with an entrepreneurial start-up firm in accordance with the present invention. The method starts in step 402 and proceeds to step 404 where contact is made with a potential angel investor. Such contact may be made by a potential angel investor logging onto an Internet website and entering the appropriate information, or through other sources. The method then proceeds to step 406 where it is determined whether this is a new angel or an existing angel, i.e., an angel who has registered before with the system. For a new angel, the method proceeds in accordance with the �new� branch to step 408 where it is determined whether this is a real inquiry for investment purposes or simply a �test drive. � For a test drive, the method proceeds in accordance with the �test� branch from step 408 to step 410 for the collection of sample information from the angel investor. [0070] The method then proceeds to step 412 where the angel participating in the test drive is provided with sample Galt Scores� and Mall Charts� of various fictional start-up operations. Alternatively, the angel participating in the test drive may be provided with actual Galt Scores� and Mall Charts� of real-world start-up firms presented under pseudonyms or otherwise in an anonymous manner. From step 412, the method proceeds to step 414 in which the angel is queried as to whether he wishes to select a start-up firm for investment purposes, or to further research potential investments. [0071] In the event the angel chooses to continue with the test drive and select a test drive start-up firm, the method proceeds in accordance with the �yes� branch from step 414 to step 416. In step 416, the angel is provided with a sample financing scenario. In step 414, if the angel opts not to select a fictional start-up venture, the method proceeds in accordance with the �no� branch from step 414 to step 418 where the angel is provided with information regarding the services of the angel/entrepreneur system. From either of step 416 or step 418, the method proceeds back to step 408 where the angel is asked whether he cares to participate in a real inquiry about start-ups desiring financing, or, alternatively, would like to participate in another test drive. [0072] If it is determined in step 408 that the angel wants to participate in a real investment scenario, the method proceeds via the �real� branch from step 408 to step 420. In step 420, information is collected about the angel. Once the angel information has been collected, the method proceeds from step 420 to step 422. Similarly, if it is determined in step 406 that the angel has already registered before, that is, the angel is an existing angel, the method proceeds in accordance with the �existing� branch from step 406 to step 422. In step 422, it is asked whether the angel cares to edit the previously entered information. For instance, the angel may opt to change some of his selections to reprioritize his criteria for selecting start-ups for possible financing. If the angel chooses to edit the existing angel information, the method proceeds in accordance with the �yes� branch from step 422 to step 424 where further information is collected or existing information is edited. If, in step 422, the angel chooses not to edit any current information, the method proceeds in accordance with the �no� branch from step 422 to step 426. [0073] In step 426, the Galt Scores� and Mall Charts� are tabulated and potentially matching start-up firms are identified. The method proceeds to step 428 once the analysis has been completed to identify any potentially matching start-up firms. In step 428, the angel investor is provided with a menu of potential start-up firms for selection. The menu of potential start-up firms for selection may be determined by choosing those firms which have Galt Scores� above a certain number of threshold points. The particular number of �threshold points� is the minimum number of points that the start-up business must accumulate in the matching process to be considered by an angel for investment. The threshold points may be set at a default value, or may be altered by the angel to allow for more, or fewer, potentially matching start-up businesses. The method then proceeds from step 428 to step 430 where the angel is given the choice of selecting a start-up for investment purposes. [0074] If the angel chooses to invest in a start-up in step 430, the method proceeds in accordance with the �yes� branch from step 430 to step 432. In step 432, further information is collected regarding the financing and contractual obligations and options of the angel investor. Following step 432, the method proceeds to step 436 where the entrepreneur is notified that an angel has selected his start-up for possible investment. The method then proceeds to step 432 where it ends. [0075] In step 430, if the angel chooses not to select any start-ups for investment purposes, the method proceeds in accordance with the �no� branch from step 430 back to step 422 where the angel is given the option of editing information about him in the database. [0076] In accordance with an alternative embodiment, an angel investor may appoint specific delegates which have partial or complete access to the angel's information, and/or authority to act on behalf of the angel. For example, an angel may appoint his money manager as a delegate to act on his behalf in making and executing investment decisions. Similarly an angel may appoint a delegate who performs any one or more of the following roles: Money Manager; Accountant/CPA; Financial Advisor; Legal Counsel; or other persons authorized to view or control the angel's private investments or portfolio. An angel may appoint multiple delegates, each having different duties and corresponding authorizations with respect to carrying out various functions within the angel's account. [0077] The angel authorizes a delegate to have access to their information through an angel delegate authorization page on the website. The angel would need to know, or provide, the delegate with a user ID for specific access to all or part of the angel's information or authority. Then the next time the delegate logs in, the angel would be in their list of clients. In addition, the angel may specify predetermined investment limits for a delegate to whom the angel gives the investment authority. [0078] A Delegate Home Page may be provided, which could be accessed only by registered delegates. The Delegate Home Page is specifically for delegates having multiple angels as clients. Alternatively, if a delegate supports only one angel, as in the case of an executive assistant, that delegate may use the angels'login and password. [0079] In another embodiment of the present invention, the angel/entrepreneur website may be provided with the ability to monitor and track usage by username, e.g., angel username, entrepreneur username, or delegate username. The angel/entrepreneur website may also be provided with the ability to create an audit log for the transactions initiated by various usernames. This feature allows traceability in case of a dispute or question. It additionally provides insight to usage trends by user types, and identifies high frequency users who may be likely to want additional features or enhancements. [0080] The aforementioned embodiments and description of the present invention are intended to be illustrative rather than restrictive. One skilled in the art may know many variations of implementing the present invention which may be derived from the present description. For example, the preferred embodiment of the invention has been disclosed in terms of communicating via the Internet. However, in accordance with other embodiments, various different communication networks may be used in practicing the present invention, or alternatively, certain steps of the invention may be conducted through face-to-face meetings. All other such variations and modifications known to those skilled in the art are considered to be within the scope and spirit of the present invention, as defined by the following claims. Referenced byCiting PatentFiling datePublication dateApplicantTitleUS7486943 *Dec 15, 2004Feb 3, 2009Mlb Advanced Media, L.P.System and method for verifying access based on a determined geographic location of a subscriber of a service provided via a computer networkUS7698188Nov 3, 2005Apr 13, 2010Beta-Rubicon Technologies, LlcElectronic enterprise capital marketplace and monitoring apparatus and methodUS7827081 *Apr 4, 2007Nov 2, 2010Phistream, Inc.Computer method and system for equity financing by retail investors with collective due diligence fundingUS7908194Sep 27, 2007Mar 15, 2011Equity Net, LLCElectronic enterprise analysis apparatusUS7929954Jan 30, 2009Apr 19, 2011Mlb Advanced Media, L.P.Method for verifying access based on a determined geographic location of a subscriber of a service provided via a computer networkUS8213898Apr 18, 2011Jul 3, 2012Mlb Advanced Media, L.P.System for verifying access based on a determined geographic location of a subscriber of a service provided via a computer networkUS8630931 *Feb 6, 2012Jan 14, 2014Timothy B. BendelSystem and method for funding companiesUS8849255Jun 27, 2012Sep 30, 2014Mlb Advanced Media, L.P.System for verifying access based on a determined geographic location of a subscriber of a service provided via a computer networkUS20090216644 *Apr 27, 2009Aug 27, 2009Summer Robert DNetwork affinity-group commerce method involving system management fulfilmentUS20120136807 *Feb 6, 2012May 31, 2012Bendel Timothy BSystem and method for funding companiesUS20130159215 *Dec 14, 2012Jun 20, 2013Think Big Partners, LLCComputer program, method, and system for facilitating investment transactionsWO2005069178A1 *Jan 17, 2005Jul 28, 2005Exponential Markets Pty LtdA system and method for facilitating unlisted market transactionsWO2006015424A1 *Aug 9, 2005Feb 16, 2006Glen SprattA method for linking borrowers and investors* Cited by examinerClassifications U.S. Classification705/36.00RInternational ClassificationG06Q30/02Cooperative ClassificationG06Q40/06, G06Q30/02European ClassificationG06Q30/02, G06Q40/06Legal EventsDateCodeEventDescriptionApr 15, 2002ASAssignmentOwner name: ANGEL LEGACY, LLC, CALIFORNIAFree format text: ASSIGNMENT OF ASSIGNORS INTEREST;ASSIGNOR:MILAM, JOE;REEL/FRAME:012797/0195Effective date: 20020408RotateOriginal ImageGoogle Home - Sitemap - USPTO Bulk Downloads - Privacy Policy - Terms of Service - About Google Patents - Send FeedbackData provided by IFI CLAIMS Patent Services