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Lakeshore arch angels presentation 04 2013_ali
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Lakeshore arch angels presentation 04 2013_ali Lakeshore arch angels presentation 04 2013_ali Presentation Transcript

  • Lakeshore ArchAngels INVESTOR MEETING
  • Introduction  Purpose of this meeting:  Introduction to Lakeshore ArchAngels  Mission and short/long term plans  Introduction to Angel Investing and Angel Groups  Deal flow  Benefits
  • “ ” to provide a forum for entrepreneurial-minded members to invest in early- stage businesses in the Midwest Mission statement
  • Mission statement  Leverage the resources of our community: YOU  Provide a forum for Angels to hear about investment opportunities  Provide networking and educational opportunities for both Angels and entrepreneurs  Encourage entrepreneurs in our community to consider new products, expansion, etc. and apply for funding  Help grow the next generation of entrepreneurs and Angels
  • Intermediate Goals: Yr 2-5  Creation of programs to support early stage entrepreneurs:  Startup Weekends/Hackathons  Incubators  Structuring of venture fund  Global outreach (e.g., Russia) for start-up validation and distribution channels  Make the non-believers the believers!
  • Long-Term Goals: Year 10+  Engaged angel group  Venture fund $100M  Mentored x# of companies; $1B in post-money valuation  Positive impact on community-growth in housing, jobs, construction, etc.  Shift in perception of our community  Active in complementary organizations, e.g., World Futurist Society  Connection with high schools
  • What is Angel Investing?  What is an “angel investor?”  Historically, “angels” were individuals who financed Broadway productions  Accredited Investor under the SEC rules and regulations:  Individual annual income of $200,000 or joint of $300,000  Net worth of $1,000,000  Angel investing statistics:  Funding gap  Angels invest more per year than VCs
  • What is Angel Investing?  Funding gap Stage Pre-Seed Seed/Start- Up Funding Gap between $500,000 and $2,000,000/$5,000,000 (depending on region) Early Later Source Founders, Friends and Family Individual Angels Venture Funds Investment $25,000 to $100,000 $100,000 to $500,000 $2,000,000/$5,000,000 and up
  • What is Angel Investing?  Angels invest more per year than VCs  Venture Capital ~$.3 billion  State Funds ~$.5 billion  Friends & Family ~$60 billion  Angel Investors ~$20 billion : 90% of outside equity  Companies funded by angels:  Google  Paypal  Amazon EarlyLate VC Mostly later stage 3,400 deals $0.5-1.0B per Year Angels 49,000 deals Mostly early-stage $20B per Year
  • Funding “marketplace”
  • What is Angel Investing?  Characteristics of an angel investor:  Invest locally, desiring to give back to their community and prefer to be close to their investments  Often successful entrepreneurs & other business professionals  Members with specialized areas of expertise  Accredited investors  Looking for different investment model  Interested in ROI  Typically early stage before venture financing or with VC financing
  • What is Angel Investing?  Why be an Angel Investor?  Significant possible upside: In recent years, VC investments have boasted high returns  Possible involvement in company; cofounder/board member/strategic partner  Helping entrepreneurs: rewarding.  Why not be an angel investor?  High risk  Invest only what you can lose  Can be stressful
  • Why join Lakeshore ArchAngels?  Consistent deal flow  Shared due diligence  Opportunity to diversify portfolio  Financial gain  Learn from expertise of others  Contribute to the growth of companies through mentoring and advising  Educational Seminars
  • Deal Sourcing: How we’ll find investment opportunities  Angel group members  Other angel networks and investment groups  Investment forums:  Generally screened  Industry/technology focused, or just early stage  Interact and learn from experienced angel investors  Venture capitalists  Investment bankers  Professionals: lawyers, accountants, bankers  Professional/business journals  Internet
  • Deal Flow: Sourcing to Exit Pre-Funding •Exploratory contact •Application •Pre-screen •Due diligence •Revisions/Pivots Funding •Term sheet and valuation •Presentation(s) •Deal structure/documents/legal •Closing Post- Funding •Monitoring •Mentoring •Resources/Network •Harvesting/Exit
  • Educational Seminars  Topics include:  Angel Finance & Valuations  Deal Screening  Due Diligence  Deal Structure and Negotiation  Post Investment Monitoring  Tax Credits and Incentives for Angels
  • Next Steps  Identify potential Angels and startups  Organize committees for governance, operations, marketing, membership, deal sourcing & screening, due diligence, investing.  Plan educational programs  Finalize group structure & documents  Align with regional startup community
  • Thanks for listening! Questions?