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Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809
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Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809

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angel, angel groups, angel networks, angel capital association, svb, investing, vc, usa, aca, stanford, burton lee

angel, angel groups, angel networks, angel capital association, svb, investing, vc, usa, aca, stanford, burton lee

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Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809 Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809 Presentation Transcript

  • Stanford European-US Angel Investor Groups Mini-Summit Angel Investing Going Global Stanford University – School of Engineering May 18, 2009
  • Overview - U.S. Angels
  • General Characteristics of Angel Market in the U.S. • Over 300 Angel Groups in U.S. • Estimated $19B Invested in 2008 by All Angels • Fund vs. Network • Focus - Industry Verticals vs. Agnostic • Sophisticated, Casual and Super Angels • Syndicating Deals
  • Growth in Number of Angel Groups in U.S. 300 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sources: Center for Venture Research (pre 03 data) and Kauffman Foundation/ACEF (04-09 data)
  • Typical Profile of What Angels Invest In • Product is developed or near completion • Company has existing customers or pipeline of potential customers who can validate demand • Entrepreneur has invested own dollars and exhausted other alternatives (including friends and family) • Company is likely to grow rapidly and reach at least $15-30M in revenues in the next 3-7 years • Business plan is well thought out
  • Stage U.S. Angel Groups are Investing In Startup Profitable 8% 3% Product Shipping Development 53% 36% Source: 2008 ACEF, SVB and Dow Jones Angel Group Data Surveys
  • Where are U.S. Angel Groups Investing? Business Other Financial Svcs. 6% 18% Consumer Goods 3% Information Technology Consumer Svcs. 35% 6% Energy/ Utilities Industrial Goods 2% Healthcare 5% 25% Source: 2008 ACEF, SVB and DowJones Angel Group Data Surveys
  • Average Preferred Investment per Round (per Group) < $150,000 $150,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 > $750,000 0 10 20 30 40 50 Percent of Source: 2009 ACA Angel Group Confidence Survey and 2008 Member Directory Groups
  • Angel Group Investment Structure Network/Sidecar (7.8%) Fund (22.2%) Network (69.8%) Source: 2008 ACA Member Directory/ 2009 membership applications – 166 groups reporting (2006-2009)
  • Groups Led by Members or Hired Managers Both (3.4%) Manager (41.1%) Members (54.8%) Source: 2008 ACA Member Directory/ 2009 membership applications – 146 groups reporting (2006-2009)
  • U.S. Angel Group Organizational Structures No Structure For Profit 59% Non Profit 25% 16% 40 35 30 25 20 15 10 5 0 LLC LP C-Corp 501c3 501c4 501c6 Non-Profit None Source: 2008 ACA Member Directory/ 2009 membership applications – 162 groups reporting (2006-2009)
  • Typical Deal Process for an Angel Group Screening Team General Meeting Submissions Diligence & Term Manage Review Presentations (~30 Plans Sheet Negotiations (5 – 10 Plans (1 – 3 Plans Investment Per Month) (Coordinated by Per Month) Per Month) Managing Director & Deal Lead) Managing Director Deal lead closes Screening polls members for transaction and Board Managing team votes level of investment the sidecar fund member Director pre- on which interest in deals, invests in represents recruits diligence companies that screens companies to team, and member attract at least emailed invite to facilitates $250K in interests and submissions general selection of deal investment from seeks an meeting lead to begin term at least 5 attractive exit sheet negotiations members Source: James Geshwiler, Common Angels Boston, MA
  • Co-Investment and Follow on Preferences Individual angels Other angel groups Early-stage VC Later-stage VC Family offices Other private equity No co-investment 0 20 40 60 80 100 Source: 2008 ACA Angel Group Confidence Survey
  • Angel Capital Association • Professional association of angel investing groups in North America • Mission: Support the growth, financial stability, and investment success of member angel groups. • Professional development • Best practices • Networking • Collaboration strategies • Public policy voice for American angel groups
  • Summary of ACA Membership – April, 2009 Full Members 146 Provisional Members 16 Accredited Investors in Groups 7,062 States & Provinces 49 Affiliate Organizations 19
  • Members and Affiliates – April, 2009 Full Members Provisional Members Affiliates
  • Questions? Laurie Lumenti Garty Marianne Hudson Managing Director Executive Director SVB Capital Angel Capital Association 3000 Sand Hill Road 8527 Bluejacket St Lenexa, KS Building 3, Suite 160 PH: 913-894-4703 Menlo Park, CA mhudson@angelcapitalassociation.org PH: 650.233.4204 www.angelcapitalassociation.org llumenti@svb.com www.svb.com