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Presentation: Accessing Angel and Venture Capital
 

Presentation: Accessing Angel and Venture Capital

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    Presentation: Accessing Angel and Venture Capital Presentation: Accessing Angel and Venture Capital Presentation Transcript

      • ACCESSING ANGEL & VENTURE CAPITAL
      • A PRESENTATION TO
      • FROM
          • February 19, 2009
          • Presented By:
          • Jim Noble
          • Regional Coordinator
          • Northern Ontario Enterprise Gateway (705) 377-7600
          • 1-866-924-7600 [email_address]
          • www.noeg.ca
    • NOEG – An Overview
      • Incorporated non-profit with a volunteer board.
      • Funding from FedNor.
      • Mission to stimulate the flow of capital (equity)
      • investment and management expertise from northern investors into high-growth potential Northern Ontario companies.
    • NOEG – Accomplishing the Mission.
      • Formation of local/regional angel investor networks.
      • Building links to other angel groups to increase investment capacity.
      • Help entrepreneurs prepare for investment – through our investor-ready programs.
      • Provide a process and link through which investor-ready entrepreneurs can access accredited investors.
    • Angel/VC Investment Landscape Angels 48,000 Deals $22-$24B 2004 Investment In North America VCs 2,876 Deals $21B
    • The Traditional Funding Landscape – Where Angels & VC’s fit
      • HIGH
      • Level of
      • Investment Risk
      • Assumed by
      • Investor
      • Seed Start-Up Early Growth Established
      • Stage of Business
      • LOW
      Founder/Friends/ Family Government. Angels VC’s M&A/Equity Markets Commercial Banks
    • The Funding Landscape “After the Meltdown”
      • HIGH
      • Level of
      • Investment Risk
      • Assumed by
      • Investor
      • Seed Start-Up Early Growth Established
      • Stage of Business
      • LOW
      Founder/Friends/ Family Government. Angels VC’s (VC Ghost Town) M&A/Equity Markets Closed Commercial Banks More Risk Adverse The Funding Gap for Start-Up’s and Early-Growth Companies is widening
    • Impact on Entrepreneurs
      • Cash is king (cash-flow)
      • Must learn to bootstrap (do more with less)
      • Valuations will be less
      • Must be sure investors have deep enough pockets to get across the “funding gap”
      • Harder to get funded
    • Impact on Investors
      • Potential reduced investment capacity
      • Increased risk of dilution
      • Getting “stuck” with no exit
      • BUT – ANGELS ARE STILL INVESTING
    • Angels & VC’s Compared & Contrasted +1.5 million +++ $100,000 to $1.5 million (syndicating trend today in order to make larger investments) Funded Amounts Invest other people’s money (institutions) Invest their own money + mentoring Investment V/C’s Angels
    • Angels & VC’s Compared & Contrasted More than angels, need to make a minimum number of investments in a given year Less than VC’s – have luxury of being selective Number of Investments each year Operating history, experienced management team, can scale, sustainable competitive advantage Chemistry with management, detailed go-to-market strategy, rapid growth potential Key reasons to invest V/C’s Angels
    • Angels & VC’s Compared & Contrasted $5 million and above Less than $3 Million Post-money Valuations Less negotiable Somewhat negotiable Terms V/C’s Angels
    • Contact Me:
      • Thank You and Questions
      • Jim Noble, NOEG Regional Coordinator by
      • telephone at 1-705-377-7600, toll free 1-
      • 866-924-7600 or through our website at
      • www.noeg.ca .
      • Thank you.