Angels Investing the Big Picture · 2018. 8. 8. · • Venture Funds • Strategic VCs ... •...
Transcript of Angels Investing the Big Picture · 2018. 8. 8. · • Venture Funds • Strategic VCs ... •...
AngelsInvestingtheBigPicture
JEANHAMMONDLearnLaunchLaunchpad,GoldenSeeds&HubAngels
Nov1,2017
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• Anentrepreneurneedscapital
• Angelinvestorswouldliketoinvestinsituationsthathavethepotentialofhighreturns
• Angelinvestorswouldliketosupportlocal/regionalentrepreneurs
• Thissessionwill:A. Positionangelinvestingincomparisontootherassetclasses
andreviewinvestingstrategies• Whatfundingworksforvarioustypesofcompanies
B. Reviewtheprocessbywhichangelsandentrepreneursgettogether,worktogether,andthenpartcompany
C. Discusslearningtobeanangel• LookintoNewEnglandecosystemforangelinvesting
Introduction
AngelInvestingProcess
AngelInvesting..Importantpartoftheprocess
Whatinvestorsneedtoknowaboutacompanytodecide
OverviewofFundingSources
Overview
Entrepreneurshipcomesinmanyforms
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SOCIALVENTURECOMPANY
NORMALGROWTHCOMPANY
HIGHGROWTHCOMPANY
EXTREMEHIGHGROWTHCOMPANY
• Goalistofulfillasocialneed
• Hasmissionorientation
• Teamneedstosupportmission
• Canhavenormalorhighgrowthprofile
• Exit…maybehardertofindfit
• Includesallservicebusinesses
• Exploitingalocalmarketneed
• Teamhas‘greatjobs’
• Growsrevenueindirectproportionto# employees,orhaslowprofits
• Exitwillbebasedonvalueofcashflow(maturebiz.)
• Companycangrowfast(on-line)orhasascalablesystem
• Teamoftenmotivatedbyexit
• $7-10Mrevenuein5y&marketsizeallowssignificantadditionalgrowth
• Capitalefficienttotalinvestment$2-4M
• ExitbyM&A
• Growthprofileultra-scalable
• Teamfocusisexit• Revenue$40M+
withlotsofroomforgrowth(5yr.)
• Basedon$20M+investment
• ExittargetedtoIPOorby‘large’M&Aevent
Entrepreneurshipcomesinmanyforms
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SOCIALVENTURECOMPANY
NORMALGROWTHCOMPANY
HIGHGROWTHCOMPANY
EXTREMEHIGHGROWTHCOMPANY
• Friendsfamily,founders
• Charity$$• Crowdfunding
(Kickstarter)• ImpactAngels• ImpactVCs&
familyoffices• Crowdfunding
(portalstyle)• Royaltybaseddebt
• Friends,family,founders
• Debt,Bank,andother
• Growthdebt• (Future)Crowd
funding(portalstyle)
• Angels• AngelGroups• AngelGroup
Syndication• AngelList• Micro-capFunds• Crowdfunding
(portalstyle)• VentureDebt• Strategic
CorporateVCs
Earlyon• Accelerators• IndividualAngels• MicroCapVCs• SeedfromVC• VentureDebt
Laterstages• VentureFunds• StrategicVCs• AngelSyndication
Crossingchasms
$.5-1M*$1.5-2.5M*
$10+M
$1-2M
$5-7M
$.5-1M
Movingforward:
Salesprocessà single,multipletoregional
Personnelà everyonedoeseverything,specialisttodevelopmentofhumancapital
Processesà logicalguess/react,opportunistictodrive/leadmarket
Highgrowthcompaniesarenotprofitableenoughtoinvestindeepcustomersupport,increasingexpensivesales&marketingefforts,andnewproducts,
allatthesametime,sotheyneedtoscalethecompanywithotherpeoplesmoney
Source:ArcCapitalDevelopment
àEverycompany’sfinancingpathisunique*Annualrevenueorannualbookingswithincreasingrepeatablerevenuemodel
CapitalSources
Traditional VC
Micro VC
Equipment Financing
Angel GroupsAngels
Angel List, etc
Corporate / StrategicVenture
Customers
Jobs Bill PortalCrowdfunding
Vendors
FounderFriends & Family
Crowdfunding: etc.
Grants
Venture Debt
BankLoans
PersonalLoans
Private Equity
B’Plan Competition
Accelerators &Contests
7Entrepreneursusuallybuildapersonalpaththroughmanysources
AngelInvestmentProcess
InvestmentCycle
SourceDD&Invest
ManageFollow-OnRounds
Exit
DevelopStrategy
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• ABusinessAngelisanaccreditedinvestorwhoinvestshis/herowncapitalinprivatecompanies– usuallyearlystagecompanies
• Angelsinvestontheirown,incrowdfundingorinorganizedgroups
• Angelinvestmentscanbesmall($5k)orverylarge($1m)• Collectively,angelsareatremendoussourceofcapitalforprivatecompanies
• Alternativeearlystageinvestorsinclude:• Crowdfunding(Kickstarter)Incentivestyle• Crowdfunding(JobBillPortals)• Accelerators• Micro-capVCs• InstitutionalVCs
*Theseindividualsarenearlyalways“accreditedinvestors”asdefinedundertheSecuritiesActof1933
WhatisaBusinessAngel?
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Whatdoyouknowboutangelinvesting?
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• However,thereisalackof“CleanData” fromangelreturns• TheAngelCapitalAssociationHaloReport,UNHVentureCenter• MostestimatessuggestVC-likereturns…theseapproach3Xforsuccessfulfunds,withIRRsabove20%
• Portfolioeffectissignificant• RecentanalysisofACAdatasuggeststhatatleast6-7investmentsarerequiredtocrossinto“expectedpositiveexits”,with12ormoreover5-7yearsshowinganevengreaterlikelihoodofsignificantreturns
• Participationinlaterroundscanhavealarge,positiveeffect
FundType 1Yr 3Yr 5Yr 10Yr 20YrEarly/Seed (20.6) 1.7 3.7 36 21.8
Mezzanine (26.9) 4.6 8.4 13.5 14.5
Later (6.8) 9.5 8.7 7.5 14.5
AllVenture (20.9) 4.2 6.4 15.5 17.0
NASDAQ (38.1) (10.3) (4.6) (3.2) 7.3
S&P500 (36.1) (10.0) (4.0) (3.0) 6.1
WhatMotivatesAngels:FinancialReturn
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• Manyangelsareinvolvedwithmentoring,coaching,trainingandadvisingentrepreneurs– orevenfindingtheirnextjob
• Somewithafocusontheirownportfolio• Sometohelpallentrepreneurs• Lotstohelpareaorganizationsintheeco-system• Ortofindafullorparttimeposition
• Manycompaniesprovideasmallnumberofoptionsforadvisors& boardmembers
• Whenaveragedwithyourinvestment…thesehaveabigeffectonreturnsatexit
• Learning,andstayinguptodateonnewtechnologiesandbusinessmodels• Creatingcompaniescreatesjobs,wealth,etc.• Goodforeconomy
• Networkingandsocializing
WhatElseMotivatesAngels
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• Investmentphilosophy• Similarrisktoleranceandreturngoals
• Stage,capitalrequirements,sizeofmarket,etc.• Similarbehaviornorms
• Lotsofcompletediligencewrittenupvs.littlediligence• Lotsof‘expert-leadinvesting’
• Structuredorunstructured• Club/Network,Fund,SidecarFund
• Paceofinvestments• Numberofmeetings(day/time/location),companiespersession,investmentsperyear
• Qualityofthepeopleandnetwork• Findpeoplewhoarefuntobearoundandworkwith
ThisAngelGroupSeemsRight
• Takesworktokeepthegroupgoingandgrowing
• Groupdecisionmakingcanfillintheknowledgegaps• Butfirstcomplainerhasalotofpower
• Findingfunsub-groupscanspeedthework• Whodoeswhat• Whoisfastandaccurate
• Canbealotoffun• Meetpeopletofocusonrealbusinessproblems
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AnAngelGroup:It’saGroup
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• FindanInterestingCompany• ScreentheCompany• CompanyPresentationtoMembersatGroupMeeting• DueDiligence• Potential“syndication”• NegotiateDealwithCompanyandMakeInvestment• Support&MonitortheInvestment(e.g.Corporate&AdvisoryBoards)• Exit(e.g.IPO,M&A,Dividends/RoyaltiesorShutdown)
• Slides18- 29arehere‘asnotes’• Therearelotsoflittlesteps
StepsintheAngelGroupInvestmentProcess
ApplicationProcess*MaineAngels=OnlineApplication
AdditionalFundingRequest
(Follow-On)
Reporting
Screening
Presentation
Diligence
Investment
ApplicationSubmitted
Declined
Declined
DeclinedApplication*Process***Maine*Angels*=*Online*application*
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• MembersofyourAngelGroup• OtherAngelGroupsorIndependentAngels• VentureCapitalFirms• ServiceProviders(e.g.lawyers,accountants,etc.)• IncubatorsandAccelerators(TechStars,LearnLaunch)• NetworkingatLocalTechnologyCentricEvents• OvertheTransom(e.g.directfromtheentrepreneur)
• Overtimeeveryoneinagroupneedstobeabletosaywhatfitsandwhatdoesn’t
WheredoAngelGroupsfindInterestingDeals?
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• Areweinterestedatall?– Aregeography,industry,stage,valuationallOK?
• Doesitmakesense?• Doesthetotalneedforcapitalmatchtheopportunity?• Cantheteamcarryitoff,withappropriatehelp?• Doesourgrouphaveanyapplicableindustryexperience?
• Arethereunansweredquestionsforfollow-upbeforeadecision?• Istherelikelytobegeneralinterestinthis,orisitveryspecialized?• Often,first30secondswithcompany’sdocumentswilltellallyouneedtoknow
• Manyangelgroupsincreasinglyfocusonscreeningtoimproveresults
Screening
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Presentation
• Ifitpassesscreening,companyisinvitedtopresenttowholegroup
• Presentationsareusually10-15minutesfollowedby10-15minuteQ&A
• Presentationshouldcoverthefollowingitems:• Problemtobesolved,companysolution,marketopportunity,go-to-marketplans
• Managementteam,competition,currentstatus,financials,fundingneeds&likelydeal
• Ifthereisinterestfrom“enough”members,weproceedtoduediligence
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DueDiligence*
• Thepointofduediligenceistogivethedealanappropriate(due)levelofscrutinysothatthegroupasawholecanmakeintelligentinvestmentdecisions.Asapartoftheprocess,itdevelopsaninterestedcadreofpotentialinvestors.
• Formtheteamwithatleastoneindustryknowledgeablemember
• Assessthecompanysolessinvolvedmembersandsyndicationmemberscandecide
• The‘work’• Wewilllookatthislater
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• Assumingthekeyquestionsareansweredsatisfactorilyfinishdiligenceincluding:
• Checkreferencesonteam• Checkmarketonproduct– usersorprospectiveusers
• StartDeal:• Startnegotiationofvaluationandgeneraldealterms• Developtermsheet• Thinkoutnextroundsandlocate“best” boardmember
• Reportbacktogroupandcheckonitsinterest;makeaneducatedguessattotal$interest
FinishDiligenceandOutlineDeal
CompanyAssessment
DiligenceFactors
LeadershipAssessmentTechnology,IP&ProductRoadmapRegulatoryStrategyCustomerNeed>MPlanUniqueness&CompetitionMarketSize&MarketOpportunityFinancialProjections&FundingStrategyExitStrategy
1. Risk/Returnassessment2. Matchtothehumancapitalandcapitalavailabletothisdeal
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SyndicatetheDeal
• Oftenasinglegroupcannotorwillnotfundacompleteroundsosyndicationisrequiredtogetthenecessaryfunding
• NewEnglandgroupsworkthroughthe“AngelTreaty”,whichgreasesthesyndicationskids
• Interestsanddiligencerequirementsdifferfromgrouptogroup,somorediligencemaystillbeaskedforinsyndication
• Thereislittle“shopping”ofdealsintheNEangelecosystem• NointerestingroupAneitherimpliesthatgroupBwillnotbeinterested,northatmembersofgroupAwon’tinvestifgroupBendorsesadeal
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• Basedonstandardtermsfoundinmanyearlystageventuredeals
• Providesahighleveloverviewofkeydealterms• TypeofSecurity:PreferredStock,ConvertibleNote,SAFEetc.• FinancialTerms:Valuation,Dividends,LiquidationPreferences• CorporateOversight:BoardofDirectors,Voting&InformationRights
• Writtenbyeithertheentrepreneur’sortheinvestor’sattorney• Oftensignedbytheentrepreneurandarepresentativeofinvestorgroup
• Notusuallybindingoneitherside,althoughtheentrepreneurcan’tuseittolookforabetterdealelsewhere
TermSheets*- SummarizingtheDeal
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LegalDocumentation
• Onceatermsheetissignedandduediligenceiscomplete,workbeginsonpreparingcompletelegaldocumentation
• Documentationvariesbasedontypeofsecurity• ConvertibleNotes(shortandsimple),PreferredStock(lotsofpaper)• Includes:InvestorRights,Voting,Co-Sale&StockPurchaseAgreements
• Documentsarepreparedandreviewedbyattorneysonbothsides
• Typically,eachinvestorsignsappropriatedocuments• Feesforinvestors’ counselarepaidbythecompanyoutoftheproceedsoftheinvestment
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ClosingtheDeal
• Finallegaldocumentationissentouttoallinterestedinvestors• Usuallywithveryexplicitinstructionsonwhattosignandwheretosendsigneddocumentsandinvestedfunds
• SignaturePagesaresignedandmailedalongwithacheck• Documentsaresenteithertocompanyortoleadinvestor• Fundsaresenteitherbycheckorwiretransfer• Insomecases,fundsanddocumentsareheldinescrowuntilfullinvestmentisreceived
• Insomecases,arollingcloseisusedtodistributefundstoacompanywhilenewinvestorsarebroughtintothedeal
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MonitoringtheInvestment- Individual
• Asanindividualinvestor• Readthequarterlyorannualreports• Ifyoudon’tunderstandsomething,ask– therearenodumbquestions
• Ifyouhaveasuggestion,emailorcalltheCEOoryourinvestorrepresentative
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MonitoringtheInvestment– GroupRep
• Asthegroup’s“representative*”• You’llprobablysitontheBoardofDirectors
• Takethisseriously.Youhavefiduciaryobligationstomanypeople--toallstockholders,employees,vendors,customers,etc.-- notjust“your” investors
• Thiscan sometimesleadtolonganddifficult unpaidhours,particularlyifthedealhastroubles. Youmustbepreparedtoputintheeffortunderallcircumstances
• ReadtheBoardmaterialsandattendallmeetings• BearesourcefortheCEO.BeinginchargecanbelonelyandtheBoardmemberscanhelp
• Consultwithotherinvestorsasneeded• Takeanappropriatefee(sometimeastockoption)foryourservice*eachinvestorhasdirectrelationshipwithcompany
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• Goodexits• LikelythelargestdealtheCEOhaseverdone
• Offerhelpifappropriate• Ifit’snotappropriate,stayoutoftheway;it’sastressfultime
• Iftheamountsinvolvedarelarge,itmightbeworthwhiletohireanoutsidertocheckthenumbers orbeanexitadvisor
• Dealsarecomplex,mistakeshappen (severalinvestorsmightbandtogethertopayforthis).Thisisparticularlyapplicableifmanylayersofinvestmentcameafteryours
• Badexits• Grinandbearit• Ifyouinvestedinequity(notconvertibledebt)makesureyourtaxadvisorlooksatSection1244
• IPO,M&A,Dividends/RoyaltiesorShutdown
Exits:Good&Bad
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DueDiligence:Criticalto NewEngland’sAngelEcosystem
• Innovationinourregionisunique&dynamic
• Angelinvestingisgrowinginquantityandquality
• Angelgroupsarebecomingmoresophisticated
• Syndicationamonggroupsisgrowing,andisacriticalcomponentoftheangelindustry’sdevelopment
• Syndicationreducestheamountoftimeandeffortinvolvedinraisingcapitalforaninvestmentopportunity-- angeltreaty
• Successfulinvesting,withingroupsandsyndications,hasduediligencesharingatitscore
AngelInvestingImportantPartofCompanyCreation
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àCompaniesgetstarted:lookformarkettraction
àAnyindustrycanbedisrupted!Notalldisruptivecompaniescangrowandexit
àCosttostartcompaniesatalltimeslow(co-working,cloud,developmentsuites,etc.)
àAngelfundingistopoffunnelinvariousstyles
àButthesearchforSeriesAlevelfundingcontinuestobehard
àCapitalflighttolatestageVC
àPEbothgrowthandbuy-outareatalltimehigh
àIPOsathistoriclows
àAccelerators
àMovingtoextendsourcesofseed&seed+funding…usuallyangels
TRENDS
MARKETRESPONSE
Trends:MorePrivateFunding
EverySectorcanhaveaSwarmofStartups
DifferentSourcesofCapitalCa
shFlow
PassiveInvestors ActiveInvestors
Concept
WorkingModel
EngineeringPrototype
ProductionPrototype
ProductIntroduction
Sales
SweatEquity&Personal
Savings
SweatCapital
EarlyStageVentureCapital
VC
Friends&Family(<$100K)
State/GovernmentAgencies($100K-$1M)
AngelInvestors($25K-$1.5M)
AngelInvestors($25K-$1.5M)
VentureCapital($500K-$5M+)
Banks($250K+)
Different sources of capital
Engineering Prototype Production
Prototype
Product Introduction
Cash
Flo
w
Concept
Working Model
Sales
Sweat equity and personal savings
Seed capital
Early stage
venture capital
VC
Passive Investors Active Investors
Friends & Family<$100K
State/Gov�t Agencies($100K-$1M)
Banks($250K+)
Angel Investors($25K-$1.5M)
Venture Capital($500K-$5M+)
AcceleratorspriortoSeriesA
36Source:Pitchbook
One-thirdofU.S.startupsthatraisedaSeriesAin‘15wentthroughanaccelerator
Alternativesourcesofcapital
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Alltheabovecanbeusedbyearly-stagehigh-growthcompaniesandby“normalgrowth”companies
• Pre-payments,etc.fromcustomers,NREtojointlybuildproduct
• Revenuehistoryopensaccesstomoretypesofdebt
Revenue– bestofall(Bootstrapping)
• Partnerforco-marketing,findersfee,etc.• Delayedpaymentforrawmaterialsfromsuppliers,etc.
• Canleadtoothercollaborations
Vendors&Partners
Debt&VentureDebt
• SBIR(SmallBusinessInnovationResearch)grantsdepartment-specificfunding– usually$800Kin2phases(slow)
• $2.5BsetasidefromFederalagenciessince1982~$2Billion+• StimulatetechnicalinnovationtomeetfederalR&Dneeds• PrincipalInvestigator(PI)shouldbeemployedbysmallbusiness
Grants
OtherFoundation&GovernmentFunding
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ImpactInvesting
• Allinvestmentshaveimpact
• Impactinvestmentsareinvestmentsmadeintocompanies,organizations withtheintentiontogeneratesocialandimpactalongsideafinancialreturn
• Returnscanreflectdifficultyofthemarketsserved
• Thegrowingimpactinvestmentmarketprovidescapitaltoaddresstheworld’smostpressingchallengesinsectorssuchassustainableagriculture,renewableenergy,conservation,microfinance,andaffordableandaccessiblebasicservicesincludinghousing,healthcare,andeducation
• Knowledgeofkeyfundersneeded
• Helpthecompaniescollectmetrics
BusinessAngels Venture Capital
Who • Private individuals• Investingtheirownmoney
• Professionalinvestors• Investingmoneyfrom
others
How
• Invest2-10% ofpersonalwealth
• $10-100Kperyeareach• $50K-1Mperroundfor
minorityshareofacompany
• Invest $5-20Mperinvestment
• Closedperiodof8-10years• Moneyraisedmustmake
moremoney
Why• Makemoney• Mentor• Socialize• Entrepreneurial track
• Career• Makemoney• Raiseanewfund
BusinessAngelsvsVentureCapital
EquityCapital:GoalisIncreasingValue
40
Employees Founders
Employees Founders Angels
Employees Founders VCs Angels
àIt’stheareaofthepieslicenotthe%
àAllpartiesagree…focusonbuildingvalue
Remember!
EQUITYREQUIRESANEXIT
AngelsandVC’s
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48,00071,110
3,237
4,561
-
20,000
40,000
60,000
80,000
100,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
#dealsinvested,annually
Angels VentureCapital
22.5 23.1 25.6 26.0 19.2 17.6 20.1 22.5 22.9 24.8 24.1 24.6
22.9 23.3 23.9 32.130.4
20.4 23.5 29.9 27.7 30.350.2 60.1
-
20.0
40.0
60.0
80.0
100.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$Binvested,annually
Angels VentureCapital
Sources:CenterforVentureResearchattheUniversityofNewHampshire;MoneyTreeReportbyPwC;Angelsdataoncompanies,VCsondeals
Angelsseedinvestment:Criticalattopofthefunnel
à Angelinvestingplaysthekey roleatthetopofthefundingpyramidà Complementedbyabout$60BVCdollars;à Estimatesarehardbutmaybe1/3togrowthcompaniesand2/3
Angelsarehighnet-worthindividualswhoinvestownmoneyinstart-upcompaniesinexchangeforanequityshareofthebusinesses
à 20-40%ofangeldealsgoontomoreequityfunding(SeriesA)towardexitàMostarefollow-onangel$andsomeVC;headingtosmallM&Aexità Somemovetolifestylecompaniesandalotfail
AngelInvesting
Angels
AngelDeals
àDoesthisfit?
àWillitfitnextyear?
à…Howtoproceed?
Okay,whataboutme?
HighRisk
• 2-10%ofNetAssets(minusprimaryresidence)• Figureoutyourbudget• Keepfundsforlaterroundsandupcomingcompanies
Application*Process***Maine*Angels*=*Online*application*
Whatothertrainingis‘needed’
CoreSubject /Concept Advanced Version
Screening&CommunityRoles ManagementofAngelGroupProcess
DueDiligence* DealLead, DiligenceProcess&SyndicationManagement
DealTerms* DealStructure, Valuations&CapTables,LegalTerms
Coaching, Advising,BoardMember
BoardMemberHandbook
Portfolio Review Portfolio& ExitManagement
• Everyoneshouldunderstandthebasics• Eachinvestingunitneedscovermostoftheseissues• Eachpersoncan/shouldplayarole
Whatinvestorsneedtoknowaboutacompanytodecide
AngelInvesting
Whattypeofcompanyisit?
Typeofcompany
à Everycompany’sfinancingpathisuniqueà Fundingcomesindistinctflavors;allfinancialpartnersarespecialists
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à Ifyousellsoftwareontheinternetthen,
à Youfindeyeballsandconverttosales
à LicensenewbatterytechnologytoexistingplayersVS
à BuildabatterycompanywithoutsourcemanufacturingOR
à Buildamanufacturer
Natureofbusiness Howyoubringtheproducttomarket
Costofscalingandfundingrequirements
Isthiscompanyreadyforfunding?
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References&diligencematerials
Executivesummary&investorpitch
Stageofdevelopment
Clearcapitalrequirements
Teaminplaceoridentified Indepthfinancials
Conceptprobablyfriends& family,maybeanindividualangel
?
Prototypesomeangelgroupinterest
Firstrevenuelotsofangelgroup
interest
5P’sofinvesting
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PEOPLE
PLAN
PROMOTION
PRODUCT
PRODUCT
bothdifferentiatedtechnologyorserviceandthemarketneedandsize
marketentryplanandcostofmarketing
abusinessmodelthathasmarginsanddistributionscoststhatareprofitable
ateamtomeettheneedsofthebusiness
goodideaofthestepsneededtocreatearepeatablebusinessmodel
àWhatpotentialcustomersaresaying
àHowtorunaseriesofmarketentrytests
àHowtheteammatchestheneedsofthebusiness
àHowthiswillscaleagainstarepeatablebusinessmodel
KEYCONCEPTS
TotalMarketSize:IncludingAdjacentmarkets
Coremarket
3rdMarket
MaybeMarket
2ndMarket
à Coremarketiscompelling
à Butthereareadjacentmarkets toexplore
Alookahead…
CompanyRiskAssessment
DiligenceFactors
LeadershipAssessmentTechnology,IP&ProductRoadmapRegulatoryStrategyCustomerNeed>MPlanUniqueness&CompetitionMarketSize&MarketOpportunityFinancialProjections&FundingStrategyExitStrategy
1. Risk/Returnassessment2. Matchtothehumancapitalandcapitalavailabletothisdeal
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1. Innovationdriveseconomicgrowthandraiseswages.2. InnovationimprovesU.S.lifeexpectancy.3. Innovationmakestechnologyaffordable.4. Neworganizationalstructuresleadtorisingstandardsofliving.5. Newhouseholdtechnologiesallowmoretimeforfamilyandleisure.6. ThepaceofAmericaninnovationhasslowedduringthepastfourdecades.7. Innovationhasfailedtoincreasewagesforasubstantialnumberof
Americans.8. Significantbarrierstoinnovationexistinthegovernmentandtheprivate
sector.9. Federalsupportforresearch&developmenthasdeclinedinrecentyears.10. RelativelyfewU.S.collegestudentsstudyfieldscriticaltoinnovation.11. AmericanwomenarelesslikelytocontinueinSTEMfieldsthanAmerican
men.12. U.S.policymakesitdifficultforinternationalstudentstostayandwork.
12InnovationFacts
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• Innovationinourregionisunique&dynamic• Angelinvestingakeypartofthefundingpath
NewEngland’sAngelAssociation
HighRisk
• 2-10%ofNetAssets(minusprimaryresidence)• Figureoutyourbudget• Keepfundsforlaterroundsandupcomingcompanies
Application*Process***Maine*Angels*=*Online*application*
OKwhataboutme?
àDoesthisfit?
àWillitfitnextyear?
à…..Howtoproceed?
Q&A