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How to Apply to Brisbane Angels        for Investment          RiverCityLabs
Welcome!Who are we?We are a not for profit organisation, providing co-working space for start-upsand early stage companies...
Finding your way around          • Bathrooms can be found out the exit door            near the kitchen          • Emergen...
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
Mission Statement  We are a community of activeangel investors, investing time and  money into innovative start up venture...
Group metrics   Formed late 2006   48 Members   10 Investee companies   20 transactions   $2.6m invested           4...
Investment metrics   Smallest Investment $40,000   Largest Investment $400,000   Smallest pre-money $450,000   Largest...
Co-investment partners• Gold Coast Angels• Bio Angels• Melbourne Angels• Wyoming Angels• Sacramento Angels• Huston Angel  ...
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
The group’s review criteria• Novel intellectual property that can be  leveraged to provide a strategic exit within 3-6  ye...
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
Nondisclosure Agreements (NDAs)• Most angels and VCs will not sign NDA’s  – May already have a potential conflict  – See t...
Why Investors Turn Down Deals•   Quality of Management•   Size of Opportunity•   Rate of Market Growth•   Product Quality•...
Key Issues         • The Management         • The Market         • The Method         • The Money         • The Numbers
The Management• Proven track record    – Relevant business experience    – In the industry, in a similar position    – A f...
The MarketMacro             Micro• Size            • Revenue Model• Growth Rate     • First-to-market• Concentration   • E...
The Method•   Business Model•   Value Proposition•   Distribution Strategy•   Competitive Differentiation•   Growth Strategy
Money•   Financial Strategy•   Capital Requirements•   Structure•   Valuation•   Exit Strategy
The Numbers• Income Statement  – Revenue Projections ($, units)  – Timeliness of Revenues  – Expenses Projections (head co...
More Numbers• Balance Sheet  – Cash  – Accounts Receivables, Inventory (are they real)  – Debt (usually not an issue, but....
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
First Impressions• Clarity  – Vision  – Path• Completeness  – Business plan• Transparency  – Team  – Numbers
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
How Angel Groups Work: Typical Deal Process                                                                         Dilige...
Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look  f...
Ongoing commitmentWe spend ~100 hours doing the deal andnext several years engaged on a monthlyand sometimes weekly basis ...
Benefits of informed investorsMentoring, coaching and “value-added” servicesare contributions angel investors and angelgro...
Common GoalIncredible Exits!
Valuation Estimatorhttp://www.caycon.com/valuation.php
Thank youJohn MactaggartChairmanBrisbane Angels Groupjohnm@jontra.com.au
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Angel Investment DECODED - [River City Labs Event]

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How to Apply to Brisbane Angels for Investment?

Join us for an open discussion session that covers;

What is Brisbane Angels
What does the group look for in a venture
What do some of the individual members look for when making their investment decision
What makes a good application
What is the application and investment process
Post investment management
The session will be moderated by John Mactaggart Chairman of the Brisbane Angels Group.

Published in: Economy & Finance, Business
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  • Bathrooms and kitchen located behind us, please put your rubbish in the bins.
  • Transcript of "Angel Investment DECODED - [River City Labs Event]"

    1. 1. How to Apply to Brisbane Angels for Investment RiverCityLabs
    2. 2. Welcome!Who are we?We are a not for profit organisation, providing co-working space for start-upsand early stage companies in the technology, Internet, telecommunicationsand mobile sectors.What do we offer?• Desk Space for $350/ mnth [ex GST] and includes; desk space, chair, internet, access to all facilities, partnership offers, mentor network and business, technology and social events.• NEW! Casual Pass $250/ mnth [ex GST] and includes; 24x7 access to the casual seating in the labs and status as a River City Labs Resident, including internet, access to all facilities, partnership offers, mentor network and business, technology and social events.
    3. 3. Finding your way around • Bathrooms can be found out the exit door near the kitchen • Emergency exit stairs out the back near the bathrooms or at the front as indicated in the picture River City Labs respectfully asks you to place all your food and rubbish items in the bins provided and to not touch any property belonging to our residents or staff. Have a great event!
    4. 4. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    5. 5. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    6. 6. Mission Statement We are a community of activeangel investors, investing time and money into innovative start up ventures, to achieve outstanding commercial success.
    7. 7. Group metrics Formed late 2006 48 Members 10 Investee companies 20 transactions $2.6m invested  4 ITC  3 BioTech  1 AgriTech  1 BlueTech  1 Mining
    8. 8. Investment metrics Smallest Investment $40,000 Largest Investment $400,000 Smallest pre-money $450,000 Largest pre-money $3.9M
    9. 9. Co-investment partners• Gold Coast Angels• Bio Angels• Melbourne Angels• Wyoming Angels• Sacramento Angels• Huston Angel Network• One ventures LP• Yuuwa Capital LP
    10. 10. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    11. 11. The group’s review criteria• Novel intellectual property that can be leveraged to provide a strategic exit within 3-6 years.• Reasonable market opportunity size to provide a projected exit of at least 10x to Angel investors.• Active post investment management by Brisbane Angels or a co-investor.
    12. 12. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    13. 13. Nondisclosure Agreements (NDAs)• Most angels and VCs will not sign NDA’s – May already have a potential conflict – See too many deals – Integrity is key to continuing business – Not motivated to steal technology• May sign NDA… – During due diligence, not earlier – Covering a very narrow set of issues• Bus Plan - no proprietary information
    14. 14. Why Investors Turn Down Deals• Quality of Management• Size of Opportunity• Rate of Market Growth• Product Quality• Competition• Barriers to Entry• Stage of Development
    15. 15. Key Issues • The Management • The Market • The Method • The Money • The Numbers
    16. 16. The Management• Proven track record – Relevant business experience – In the industry, in a similar position – A failure can be significant (learning on someone else’s $$$)• Integrity, dedication, commitment, passion• Vision and the ability to articulate it• Knowledge, skill level, intelligence• Leadership skill & ability to build a team
    17. 17. The MarketMacro Micro• Size • Revenue Model• Growth Rate • First-to-market• Concentration • Economics (pricing)• Barriers to • Customers Entry • Segmentation • Differentiation
    18. 18. The Method• Business Model• Value Proposition• Distribution Strategy• Competitive Differentiation• Growth Strategy
    19. 19. Money• Financial Strategy• Capital Requirements• Structure• Valuation• Exit Strategy
    20. 20. The Numbers• Income Statement – Revenue Projections ($, units) – Timeliness of Revenues – Expenses Projections (head count, O/H) – Salary – Margins
    21. 21. More Numbers• Balance Sheet – Cash – Accounts Receivables, Inventory (are they real) – Debt (usually not an issue, but...) – Liabilities• Cash Flow – Operating (recent performance vs budget) – Financing• Capitalisation Schedule
    22. 22. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    23. 23. First Impressions• Clarity – Vision – Path• Completeness – Business plan• Transparency – Team – Numbers
    24. 24. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    25. 25. How Angel Groups Work: Typical Deal Process Diligence & Term Submissions Screening Team Member Meeting Manage Sheet Negotiations Online Only Review Presentations Investment (Coordinated by (Gust) Deal Lead) Deal committee polls Screening team members for level of Deal lead Review votes on which investment interest represents in deals, recruits committee pre- companies to Deal lead closes member diligence team, and screens invite to facilitates selection of transaction. interests and submissions. member deal lead to begin seeks an meeting. term sheet attractive exit. negotiations.
    26. 26. Agenda• Who are Brisbane Angels• What does the group look for in a venture• What do some of the individual members look for when making their investment decision• What makes a good application• What is the application and investment process• Post investment management
    27. 27. Ongoing commitmentWe spend ~100 hours doing the deal andnext several years engaged on a monthlyand sometimes weekly basis with thecompany.
    28. 28. Benefits of informed investorsMentoring, coaching and “value-added” servicesare contributions angel investors and angelgroups can provide to the company.
    29. 29. Common GoalIncredible Exits!
    30. 30. Valuation Estimatorhttp://www.caycon.com/valuation.php
    31. 31. Thank youJohn MactaggartChairmanBrisbane Angels Groupjohnm@jontra.com.au
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