Angel 101 - Is Angel Investing Right for You?
Upcoming SlideShare
Loading in...5
×
 

Angel 101 - Is Angel Investing Right for You?

on

  • 802 views

A presentation by MLA Chair Gerard Buckley on the fundamentals of angel investing.

A presentation by MLA Chair Gerard Buckley on the fundamentals of angel investing.

Statistics

Views

Total Views
802
Views on SlideShare
255
Embed Views
547

Actions

Likes
0
Downloads
8
Comments
0

3 Embeds 547

http://www.mapleleafangels.com 356
https://www.mapleleafangels.com 190
https://twitter.com 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Angel 101 - Is Angel Investing Right for You? Angel 101 - Is Angel Investing Right for You? Presentation Transcript

    • A n g e l 1 0 1 – T h e F u n d a m e n t a l s o f A n g e l I n v e s t i n g I s A n g e l I n v e s t i n g R i g h t f o r Y o u ?
    • 2 • I am Gerard Buckley – Founder & CEO of Jaguar Capital an Advisory Practice for Growth Companies in Governance, Financial Management & Financial Structuring – Chairperson of Board of Directors, Maple Leaf Angels Corporation & Investor in eight early stage companies – Certified Corporate Director of the Institute of Corporate Directors – Previously Entrepreneur in Residence with Incubes (An Internet Company Accelerator) – Member of Small & Medium Enterprise Committee of The Ontario Securities Commission – Investment Committee of MSV University, Halifax, NS – 32 yr. Career with Scotia Capital as a Financial Risk Management Advisor to Fortune 200 Companies: Rogers, Irving Group, Empire Co., Four Seasons, Bruce Power, OPG, Province of Ontario, Ford etc. Who Am I www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Agenda • What is Angel Investing • Who are Angel Investors • Why would someone be an Angel Investor • What type of companies do Angels invest In? • Angel Network in Canada • Halo Report 2013 • Who is Maple Leaf Angels and what are the benefits of joining • Q & A www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • What is Angel Investing • Angel Investing is individuals investing their personal money in the equity or debt of a Early or Growth Stage Company • Often referred to as Smart Money, it is where an individual wishes to invest their time or experience as well money in a start-up company. • People wishing to give back their experience so others may benefit which is often referred to as mentoring or serving on a company Advisory Board or BOD. • Angel Investing is Active Investing not Passive www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Who is an Angel Investor • A person prepared to invest their personal or family money • A person who can add value to the company • An accredited investor as defined by OSC • A member of an angel network • The majority of angel investment in Canada is completed by individuals >85% • Estimate of Cdn Angel Investment is 916mm in approx 1500 companies (VC about 2b) www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Profile of an Angel - Median Years investing 9 Number of Investments 10 Total Exits 2 Years as a Entrepreneur 14.5 Number of ventures founded 2.7 Age 57 Percent of net worth 10% Education Masters Degree Angel Resource Institute Source: Wiltbank Study 2007 www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Why Would Someone be an Angel Investor • Qualified Opportunities • Opportunity referral • Increased Capital Diversification • High Risk Asset Class …. Seeking High Returns • Favourable Valuation and Terms in comparison to VCs • Networking • Portfolio company mentoring or engagement • Shared Due-Diligence • Advisory Board and Board of Director Roles www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • What Type of Companies Do Angels Invest In? • Companies who are in seed and early stage. • In technology, life sciences, ict, health care devices, med tech, clean tech, power solutions, fin tech, ….. • Solve a Problem, Secret Sauce or technology ....... USP, validated business model, Great management team www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Equity Capital Life Cycle www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • What Angels Look For • High anticipated growth rate – Scalability • Experienced management team • Sustainable competitive advantage • Barriers to entry ie. Exclusive IP • Clear strategy for commercialization • Proof of concept or enterprise level validation • Business model anchored in Reality • Investor exit strategy in 5 to 8 years • Investing in what you know – vertical expertise • Coach ability of the entrepreneur • Amount of dilutive capital required www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Selection Criteria • Seed investment should be from $250k to $500K and early stage investments should be from $350k to $1,500K • Valuation 1 to 3.5 million (Halo 2013 median 2.5m) • The stage, quality of the management team, valuation and technology of companies are more important than the sector criteria • Quality is more important than quantity • In Canada 7.3% of companies get funded (93% don’t) • In Silicon Valley (1/300) get funded www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Investment Process 1. Pre-screening – MLA Staff 2. Curbside Mentoring or Individual Member Mentoring 3. Present to Investment Review Committee 4. Present at members meeting 5. Due-diligence Committee is formed and led by a member 6. Term Sheet is negotiated & agreed between parties 7. Investment is papered by lawyer 8. Member is appointed to board 9. Quarterly company reporting Outlined on MLA Website www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Factors that appear to impact investor outcome • Due diligence time: More hours of due diligence positively related to greater returns (> 40 hours) • Experience: An angel investor's expertise in the industry of the venture being invested • Participation: Angel Investors that interacted with their portfolio companies at least a couple of times per month mentoring, coaching, providing leads and monitoring performance experienced greater returns. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Solo Angel Investing • Process is time-consuming – Deal sourcing – Reading plans (MLA sees 250 Business Plans a year) – Meeting with entrepreneurs • Due Diligence is difficult – Finding Vertical experience – May require using outside experts • Legal Support is Expensive • Most have Family Offices – Super Angels Angel Resource Institute www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Angel Network’s in Canada • NACO – National Angel Capital Organization • 32 Angel Groups in Canada • They have collectively about 1000 to 1500 investors • Three large groups accounted for 58% • The majority have fewer than 50 members • 75% of groups set up since 2007 • Vast majority do volunteer due diligence • 12 Angel Groups in Ontario • Keiretsu Forum & Golden Horseshoe Venture Forum are Private For Profit Angel Groups www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Canadian Angel Group Investment Activity 2012 • 139 Investments in 2012 totaling 40.5 million, an increase from 2011 of 134 investments and a decrease in investment from 82.4M • Average investment is $314k down fr $614k • 50% of angel groups made over 6 investments in 2012, an increase of 20% over 2011 • 82% - Ont & Que, 16% West, 2% Atlantic • ICT (54%), Life Sciences (23%), Clean Tech (10%) • Valuation – Median 1.55m, Mean 2.06m • 55% of transactions involved a co-investor www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Angel Resource Institute – Halo Report – 2013 • Median Angel Round Size trends up to $700K Q4 from $550K Q3 • Early Stage Pre-Money Valuations remain stable at $2.5M; however, top valuations increased from $6.6M to $9.3M • 72% of deals occur in angel groups’ home states • 73% of Angel Deals are Syndicated or Co-Invested • Median Round Size $1.7M up y/y from $1.5M when co-invested • Share of Deals by Sector - Internet 38.5%(+), Healthcare 19.6%(-), Mobile & Telecom 16.2%(+), Software (non- Internet/mobile) 4.0%(-) • Interesting that the top US angel group in 2013 is Golden Seeds with 300+ members invests predominately in women led & controlled companies www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Maple Leaf Angels Corporation • Toronto based and in existence since 2007 • MLA has invested in 23 companies since inception in 2007 for $10,000,000 + • Registered with the OSC as a Exempt Market Dealer • Currently 38 members • Open and transparent – published funding process • Continual Entrepreneur support: Curb Side Mentoring, Volunteer Mentoring, Entrepreneur Workshops etc. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Maple Leaf Angels - Connects Our mandate is to connect experienced, accredited investors, and the brightest, most passionate entrepreneurs in an effective investment process. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Maple Leaf Angels – Membership Benefits • Opportunity to engage with other members with investment insights & ideas • Give back and make a difference for entrepreneurs through mentoring and coaching • Access to collaborative investment opportunities through MLA’s presence within the startup ecosystem • Your investment dollars go further through government matching programs • You can take advantage of standardized initial screening processes and thereby benefit from a consistent approach to due diligence • You can harness the power of syndication that comes about when multiple members invest together. • Due diligence support • You have access to a common term sheet that is negotiated by MLA members www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • The Entrepreneur Application Process • Start with www.mapleleafangels.com • There is a full education section for entrepreneurs • Companies apply using MLA’s Private Platform • Investment Review Committee • Monthly Member Investment Meetings • Due Diligence • Term Sheet www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
    • Contact Information Gerard Buckley, BBA, FICB, ICD.D Managing Director Jaguar Capital Inc. (C) 416-884-9522 (W) 416-646-6789 g.buckley@jaguarcapital.ca gerard@mapleleafangels.com www.jaguarcapital.ca Twitter: @jaguarcapital Twitter: @gerardbuckley Slideshare: Jaguar Capital www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels