San Jose, CA Angel Investors and Venture Capital Firm

 

How Do You Find Angel Investors in San Jose, CA?

Yes, it's not a typo, we said San Jose, CA.  Why are you so shocked?  Because it's not Silicon Valley?  Because it's not San Francisco?  There are at least 209 angel investors who live in the San Jose, CA area.  Have you checked around in your area the angel investors who are waiting to hear your next billion-dollar startup?

By joining Angel Kings, we can help you get connected with the angel investors in the San Jose region.  

 

Top 3 Startups from San Jose:

1.  signifyd

SIGNIFYD’s full-service cloud platform simplifies fraud detection through a financial guarantee, allowing businesses to increase sales while reducing fraud losses. SIGNIFYD is in use by multiple companies on the Fortune 1000 and Internet Retailer Top 500 list.

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2.  nutanix

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Nutanix delivers an enterprise cloud platform that natively converges compute, virtualization and storage into a resilient, software-defined solution with rich machine intelligence. Customers get the agility and economics of the public cloud – without sacrificing the security and control of on-premise infrastructure. World’s most advanced enterprise datacenters rely on Nutanix technology to power their mission-critical workloads at any scale.

3. truevault

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TrueVault is a HIPAA compliant data store. We offer healthcare applications a secure API to store protected health information (PHI). TrueVault handles all of the technical requirements mandated by the HIPAA Security Rule. Typical integration takes days and saves months of development time. TrueVault will sign a Business Associate Agreement (BAA), and protects customers under a comprehensive Privacy/Data Breach insurance policy.

 

Who Are The Angel Investors from San Jose?  Here's our Top 6!

Ken-Keller-Top-SanJose-Investor

1.  Ken Keller

Invested in:

CipherCloud, Ark, Swiftype and Regalii

2.  David Marcus

invested in:

Boostable, Path, Shyp and Combatant Gentlemen

4.   Kazi Rahman

invested in:

Facebook, Breeze, Life 360 and Square

3.  Jason Putorti

INVESTED IN:

MyTime, Node.io and Shelf.com

Ting-Louie-SanJose-Angel-Investor

5. Ting Louie

invested in:

LinkedIn, Twitter, Facebook, Chegg and Spotify

6. Tuoc Luong

invested in:

Waygo, Returnly, Linc and Gigwalk


What Matters Most to Angel Investors

Strong user growth for a startup is undoubtedly an attraction for angel investors. The ability for a startup to generate user growth of any type means it has a product that is at least interesting to consumers and some type of marketing plan. But at some point, user growth needs to turn into money; that means converting each user to profitability.  

When evaluating a startup, angel investors need to look for a future plan for per–user profitability. With a physical product–centric startup, user profitability is usually obvious: individuals will buy the product at a certain price, and as long as the startup is accurate on cost projections, each user presents a profit or a potential profit.

More complex situations are presented with the growing number of tech, mobile, software, and biotech companies relying on nontraditional product models. Apps that are offered free to users–such as email programs–or biotech research don't come with an obvious per–user profit point. In this environment, startups may rely heavily on user growth for years, even developing wildly successful platforms from a market and branding point of view. The problem for angel investors is that a popular platform that doesn't generate revenue also doesn't generate a return–unless there's an acquisition involved.

n the absence of a plan for per–user profitability, startups need a strong exit plan–having both is the best bet. There are 3 reasons companies are willing to pay big bucks for startups that come with little in the way of existing revenue.

 

1.  Product Development

 Markets are competitive, and even the big players need a steady stream of new products in the pipeline. For many conglomerates, it's less expensive to buy a startup that has done the research, development, and troubleshooting work already. Even if a product isn't generating revenue yet, the publicity of an acquisition and potential for a new lineup can boost overall performance for a larger company. In social and mobile spaces, "products" may equate to users and audience–in the Instagram example above, Facebook got both a product and a possible subset of new users.

2.  Industry Knowledge

 Larger companies in a number of spaces rely heavily on startups to fuel learning, development, and innovation. R&D is expensive and time consuming, and one of the easiest ways for corporations to gather data is to buy startups that are at the forefront of the industry. This is especially true in the biotech field, where enterprises purchase startups that have launched solely on a research discovery.

3.  People  

We've said many times in this book that people are a main pillar of any investment, and that's true for large enterprises as well as angel investors. A third reason corporations purchase startups is for the team. Considering the expense of recruiting, especially at specialized and high levels, startup acquisitions may be an affordable option for enterprises, which then benefit from knowledge, research, and a ready–made team to implement solutions.

 
 
 

Learn about San Jose's vibrant startup community and how to invest in San Jose startups with venture capital:

 
 
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