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Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
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Angel Investing to Island Tech 2009

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David Shore gave this presentation to the Island Tech 2009 conference on the topic of Angel Investing. Rick Rasmussen co-presented on the mechanics of developing an angel group (with a different slide …

David Shore gave this presentation to the Island Tech 2009 conference on the topic of Angel Investing. Rick Rasmussen co-presented on the mechanics of developing an angel group (with a different slide deck).

Published in: Business, Economy & Finance
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  • Confidential - Here’s how our phases relate to financing and revenue - We have completed the design phase including the business logic and a comprehensive technical feasibility. - We are raising $3 million to build out an Alpha version that can generate revenue, host stored value accounts, showcase inter-device transactions, provide scalable content acquisition, offer third party affiliate tools and hook into popular social networks A Series A financing will follow for the launch and scaling phase
  • Transcript

    • 1.  
    • 2. Stirling Team
      • Hugh Notman , partner
      • 30 yrs securities and corporate finance; PwC Corporate Finance, Association for Corporate Growth, 3 boards
      • Peter Scott , partner
      • 32 yrs corporate finance; 17 years TD Bank; 5 years president TD Capital; PwC Sr VP of Corporate Finance
      • David Shore , partner
      • 18 yrs corporate finance; CIBC Investment Banking; 3 meaningful startups; 2 public boards
      • George Dorin , Sr VP
      • 30 yrs corporate finance; CA with CF designation (Corporate Finance), Sr VP, Wolrige Mahon; Sr Accountant, KPMG; PwC; RBC
      • Mike Hou , associate
      • BA, with distinction; studying for CFA
    • 3. About Stirling Mercantile Divestitures M&A Advisory Expansion Capital Fairness Opinions Early-Stage Finance FAIRNESS OPINIONS Director comfort & legal protection from independent, expert valuation EXPANSION CAPITAL Multiple industry experience Seasoned corporate financiers EARLY-STAGE FINANCING Full-service approach throughout process Aligned interests likely to secure funding DIVESTITURES Corporate financier involvement can improve price, simplify process . M&A ADVISORY Sage advice in times of need or growth opportunity
    • 4. 10 Years of Transactions
    • 5. Early-stage Financing
    • 6.  
    • 7. www.stirlingmercantile.com
    • 8. Diverse Portfolio - Successful Exits 7 Technology IRR 342% 23x Cash 5x Cash 3x Cash Life Science
    • 9. Perspectives Advisor Investor Exit Transactions Founder
    • 10. Funding Road Map Confidential F, F & E Seed, Angel Series A Series B Year 1 2 3 4 5 Early Adopters Crossing the Chasm Mainstream Growth Develop Scale Expand Phases Funding Roadmap . Investor Exit Revenue today Launch
    • 11. Objectives
    • 12. Murphy’s Law
    • 13. High Valuation Trap
      • Problem:
      • Follow-on investors value lower than last
      • Forced to “cram down” last investors or no deal
      • Solution:
      • Understand downstream valuations
      .
    • 14. Valuation
      • Consider the post $ cap table for the next round
      • And subsequent rounds to the exit
    • 15. Term Sheet Structures
      • Common shares
      • Preferred shares
      • Convertible debt
      • Hint: this will all be thrown out with the next investment, keep it simple
      .
    • 16. Investment Types
      • Common shares
      • Pros
        • Quick and inexpensive agreement
        • Alignment with entrepreneurs
      • Cons
        • No protection
      • Suggest
        • Include some rights often given to Prefs
      .
    • 17. Investment Types
      • Preferred shares
      • Pros
        • Downside protection from rights
      • Cons
        • Time consuming and expensive agreement that will be replaced
      .
    • 18. Investment Types
      • Convertible Debt
      • Pros
        • Downside protection from debt and rights
        • Quick and inexpensive agreement
        • Flexibility on valuation – discount to next round or warrants
      • Cons
        • Typical discount of 20% to 30% is not high enough reward
      .
    • 19. Suggested Rights
      • Follow/tag/drag along
        • Follow – right to sell if management sells
          • Also called tag along or co-sale rights
        • Drag – if majority want to sell, 100% sell
      • ROFR of financings, right to participate
      • Restrictions on changing rights, issuing debentures or stock, or completing mergers or acquisitions
      .
    • 20. Final thoughts
      • Make a decision quickly, don’t drag out entrepreneurs
      • When “No”, try to offer advice
      • Focus on your domain expertise
      • Invest in people . Don’t try to cover all downside risks with deal terms.
      .

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