This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Venture Fund Uses Lottery Model

BOSTON ( TheStreet) -- At first blush, the business model of new investment firm Revolutionary Angels appears like a lottery. All it takes is $5,000 and a dream.

Based in the innovation hotbed of Cambridge, Mass., the firm, launched last month, has a pay-to-play plan that works like this: As many as 100 startups each pay $5,000 to compete for a maximum $250,000 initial round of funding. The runner-up gets $50,000. The rest get feedback.

"This does not seem kosher," says Emily Mendell, vice president of the National Venture Capital Association, in an e-mail message, upon hearing about the firm. "Real angels would never do this."

Founder and Chief Executive Officer Chris Hurley says Revolutionary Angels offers novice entrepreneurs a shot at financing as well as advisory services at a time when they're hard-pressed to find funding through traditional routes.

"If you're a first-time entrepreneur or an early-stage company, there are a lot of challenges to get investments," says Hurley, who previously worked in corporate development at Sun Microsystems (JAVA). "You can spend a lot of time chasing your tail, and with an early-stage company, time is money."

No argument there. For starters, even bank loans are hard to come by, thanks, in part, to the downfall of CIT Group (CITGQ). And while total venture funding increased 17% to $4.8 billion in the third quarter from a year earlier, first-time financing fell 20% to $633 million, according to the quarterly MoneyTree Report from PricewaterhouseCoopers and the NVCA. That's the least amount for first-time deals in the survey's history.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CTCT $27.37 0.00%
MSFT $46.90 0.00%
SYMC $24.86 0.00%
TIVO $10.63 0.00%
AAPL $132.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs