Your SlideShare is downloading. ×
Summit 05   Presentations   07e   Davis, Laurie
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Summit 05 Presentations 07e Davis, Laurie

375
views

Published on

Published in: Economy & Finance, Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
375
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. OAA Overview Laurie Davis [email_address]
  • 2. What is the problem?
    • Seed stage companies typically require $0.5M to $2M (cash flow positive or VC)
    • Finding enough Angels willing to invest is inefficient and time consuming
    • Risk mitigation is beyond the scope of individual angels
      • Significant effort required to review prospects
      • Due diligence requires very diverse skills
      • Diversification limited by areas of expertise
  • 3. OAA Roots Purple Angel Band of Scoundrels Ottawa Angel Alliance Individual Angels VCs OAA formally launched in January 2005
  • 4. Due Diligence & Effort
    • Formalized process & VC grade due diligence
    • Pip elin e mgmt (~600 hrs to complete a deal)
    40 Business plans reviewed 80 hours 10 Detailed screening 120 hours 3 Detailed due diligence 300 hours 1 Deal creation 100 hours
  • 5. Portfolio Diversity
    • Research suggests a portfolio of 7-10 early stage deals to achieve target returns
    • Different asset classes
    • VC and non-VC type deals
      • Size of investment
      • Exit strategies
  • 6. Operational Model
    • Not a fund.. All investments are individual
    • Alliance formally incorporated as a not for profit
    • 4-6 deal review sessions (evenings)
    • Quarterly communication on company status
    • Professional development sessions
  • 7. Initial Objectives of OAA
    • Establish a membership of a minimum of 50 angels and 2 VCs
    • Establish workable processes
    • Invest in at least 4 quality deals in 2005
  • 8. Membership
    • 1 angel group
      • Purple Angel (10 members)
    • 25 individual angels
    • 3 VC firms
      • BCE Capital
      • Vengrowth
      • Ventures West
  • 9. Portfolio
    • $360K
    • $400K
    • BDC co-investment of $1,000K
    • $160K
    • TAG co-investment of $100K
    • Total $920K
    Knowledge in Power TM
  • 10. Challenges Ahead
    • Increase membership
    • Make VC partnership model work
    • Reduce investment cycle to 3 months
    • Consider raising sidecar fund

×