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IDCEE 2013: Angel investing - John Ason (Business Angel)
 

IDCEE 2013: Angel investing - John Ason (Business Angel)

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http://idcee.org/p/john-ason-business-angel/

John Ason has been an angel investor for over 17 years specializing in early stage pre-revenue companies. He has made over forty eclectic investments in the areas of e-commerce, technology, advertising, digital social media and entertainment. For about half of his investments, John has been the lead angel devoting a significant amount of his time to mentoring the companies. A typical company consists of one or two people in a garage or kitchen with minimal or no revenues. Any capital efficient industry with high growth potential qualifies with the exception of medical and biotech. As a starting point, John will accept only one page executive level summaries via email (ason@comcast.net).

Some of John’s companies are: Xlibris.com, Scoople.It, Bikini.com, Diapers.com, Soap.com, FulcrumGallery.com, Tips.by, AppyCouple.com, GetMaid.com, LiveLook.com, HotList.com, Hooja, CarbonNanoProbes, Centrak.com, TuckerToys.com, Geometrix, CallunaVineyards.com, Ology.com, Koding.com, WeHostels.com, DoodleDeals.com, MotionMathGames.com, MakeUsAnOffer, OffTrackPlanet.com and Spling.com.

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IDCEE 2013: Angel investing - John Ason (Business Angel) IDCEE 2013: Angel investing - John Ason (Business Angel) Presentation Transcript

  • Angel Investing 10/10/2013 Copyright 2013 - John Ason1
  • Personal Background    25 years AT&T Bell Labs experience Successful in stock market Angel investor last 17 years 10/10/2013 Copyright 2013 - John Ason2
  • Angel Investments Xlibris.com Scoople.it DoodleDeals.com Koding.com EndlessTV.com ERAnyc.com Centrak.com OffTrackPlanet.com Ology.com Diapers.com HotList.com Imbookin.com CallunaVineyards.com Tips.by Spling.com WeHostels.com LiveLook.com Bikini.com FulcrumGallery.com Geometrix SpatialLabs AdPilot Hooja MotionMathGames.com 10/10/2013 Copyright 2013 - John Ason3 AppyCouple.com PhlatBall.com Monaeo.com
  • What is Angel Investing ?     Source of funds for early stage companies Typically first “professional” level Typically $100,000 to $500,000 Experience / assistance provided 10/10/2013 Copyright 2013 - John Ason4
  • Angel Profile   Usually private Ability to accumulate capital    Retired professionals Entrepreneurs Financial return secondary concern 10/10/2013 Copyright 2013 - John Ason5
  • What do Angels Want ?  A pleasant experience    An environment to contribute / participate    Excitement of growing a company Financial return Management / oversight Contacts An exit strategy 10/10/2013 Copyright 2013 - John Ason6
  • Exit Strategies (descending order)      Chapter 11 / Disbanding Life style (put option) Buyout / Merger Venture Capital round IPO 10/10/2013 Copyright 2013 - John Ason7
  • How to Find Angels ?  Networking       Venture groups Venture fairs Internet Accelerators University lectures Intermediaries 10/10/2013 Copyright 2013 - John Ason8
  • What do Angels Want to See ?     Short focussed business plan Quality management / people Reasonable valuation (20-30% equity) Market validation 10/10/2013 Copyright 2013 - John Ason9
  • Negotiating with Angels   Must be win / win Process is asymmetrical      Valuations fuzzy Angel contribution fuzzy Angels timeframe is casual / slow Angels do not HAVE to invest Angels can walk away at anytime 10/10/2013 Copyright 2013 - John Ason10
  • Financial Returns    Ten times investment in 3 to 5 years 50% IRR per year Lifestyle companies do not qualify 10/10/2013 Copyright 2013 - John Ason11
  • Company Culture      Speed, speed, speed Outsource everything Leverage / margins Compete / cooperate Open non-secretive 10/10/2013 Copyright 2013 - John Ason12
  • Angels VS VCs Money Own Other people’s Revenues None $2 – 5 million Management Partial Complete Stage Early Expansion IRR 50% 30% Multiples 10X 2X – 4X Risk High Low 10/10/2013 Copyright 2013 - John Ason13
  • Evaluation Process      Clear, concise, compelling, coherent one page executive summary Very large potential (10X) Intellectually stimulating Marketing/sales skills Execution capabilities What’a missing??? 10/10/2013 Copyright 2013 - John Ason14
  • Exploding Angel Market Starting a company close to zero  Validating a company close to zero  Emergence of accelerators  Emergence of Super Angels (Micro VCs)  Emergence of AngelList Dramatic increase in speed of angel investing  10/10/2013 Copyright 2013 - John Ason15
  • International Activity      Foreign startups looking for funding Foreign governments looking to build angel and startup ecosystems VCs getting active Accelerators going international International conferences/hackatons 10/10/2013 Copyright 2013 - John Ason16
  • How to seduce an early seed stage angel 10/10/2013 Copyright 2013 - John Ason 17
  • Investors Want Detailed market data Complete management team Detailed ROI analysis Explicit problem statement Industry experience Prior successes Business plan 10/10/2013 Copyright 2013 - John Ason18
  • WRONG!!! (sorry!!) This is for a later stage expansion company 10/10/2013 Copyright 2013 - John Ason19
  • Available Data % Angel 10/10/2013 Expansion VC Copyright 2013 - John Ason20
  • Angels Want     Explicit statement of what you do Rationale for market size Bottom up market forecast Quality management team   Prior failures acceptable Prefer outside of industry 10/10/2013 Copyright 2013 - John Ason21
  • Angels Want To be sold EQUITY in your company and NOT a product or service 10/10/2013 Copyright 2013 - John Ason22
  • First encounter Entertain Impress Inform Only one chance to make first impression 10/10/2013 Copyright 2013 - John Ason23
  • How?? Less Words Less Data More Pictures More Action 10/10/2013 Copyright 2013 - John Ason24
  • The sale is Emotional not data driven 10/10/2013 Copyright 2013 - John Ason25
  • Thank You John Ason www.JohnAson.com Ason@comcast.net 10/10/2013 Copyright 2013 - John Ason 26