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Robert E Wiltbank, Ph.D.
To the current point:
• Early yes Expertise Affordable Loss Competitive Position
– Key Uncertainties
– Who can we talk wit...
• Transaction Economics vs. Macro Economics
Price Cost T.A.M.
Contribution Margin Predicted Market shares
Cost of Customer...
Diminishing Returns to Invested Capital
Private Acquisition Size from ‘96 to ‘06
Only 15%> $50M
Diminishing Marginal Returns to Raising Capital
Variable N= 539 Burners N=514 Earners
Test of
Significant
Difference
Inc Year 1994 1987 0.000
Seller Population 16,643,472...
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FiBAN's business angel training "Effective Business Angel Investing Strategies" by Robert Wiltbank - Presentation "Angel Works"

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Presention shared by Dr. Robert Wiltbank at FiBAN's business angel training in Helsinki, 3rd of November.

All the presentations and videos are gathered here: https://www.fiban.org/robertwiltbank

Presentations given:
1. Comparison of Finnish and US angel activity
https://www.youtube.com/watch?v=UKdmr...
- Slides:

2. Angel Returns: https://www.youtube.com/watch?v=juuAK...
- Slides:

3. Effective business angel strategies: https://www.youtube.com/watch?v=TsZQd...
- Slides:

4. Effectuation in Venture investing - Do experts make decisions differently?​: https://www.youtube.com/watch?v=miWap...
- Slides

For additional details and questions: https://www.fiban.org/robertwiltbank

Published in: Investor Relations
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FiBAN's business angel training "Effective Business Angel Investing Strategies" by Robert Wiltbank - Presentation "Angel Works"

  1. 1. Robert E Wiltbank, Ph.D.
  2. 2. To the current point: • Early yes Expertise Affordable Loss Competitive Position – Key Uncertainties – Who can we talk with? Going Forward: • Milestones 1 / 3 / 5 Investment Thesis – Build our own model: • identify the relative drivers of the business and next best choices. – Identify the risks we own Diligence in the Angel fund
  3. 3. • Transaction Economics vs. Macro Economics Price Cost T.A.M. Contribution Margin Predicted Market shares Cost of Customer Acq Historical Data Customer ROI Comparables Key Target List • Cash to Cash cycles & Capital Intensity Longest lead time supply Production cycle Sales Cycle Order/Shipment gap Days in AP Details in Due Diligence
  4. 4. Diminishing Returns to Invested Capital Private Acquisition Size from ‘96 to ‘06 Only 15%> $50M
  5. 5. Diminishing Marginal Returns to Raising Capital
  6. 6. Variable N= 539 Burners N=514 Earners Test of Significant Difference Inc Year 1994 1987 0.000 Seller Population 16,643,472 11,136,083 0.000 Exit year 2001 1999 0.000 Tech Bubble 0.28 0.11 0.000 Exit VC activity (M's) 288.5 144.3 0.000 Founding VC Activity (M's) 238.4 115.7 0.000 Same State 0.32 0.25 0.006 Shareholder's Equity (M's) -2.17 3.56 0.000 Assets (M's) 12.79 9.63 0.007 Revenue (M's) 16.84 18.33 0.449 Retained Earnings (10,310,733.73) 3,310,482.26 0.000 Paid in Capital 13,919,446 95,055 0.000 Total Cashout 37,051,885 18,442,152 0.000 Years 6.5 12.2 0.000 Seller Population 16,643,472 11,136,083 0.000 Exit year 2001 1999 0.000 Tech Bubble 0.28 0.11 0.000 Exit VC activity (M's) 288.5 144.3 0.000 Founding VC Activity (M's) 238.4 115.7 0.000 Same State 0.32 0.25 0.006 Shareholder's Equity (M's) -2.17 3.56 0.000 Assets (M's) 12.79 9.63 0.007 Revenue (M's) 16.84 18.33 0.449 Retained Earnings (10,310,733.73) 3,310,482.26 0.000 Paid in Capital 13,919,446 95,055 0.000 Total Cashout 37,051,885 18,442,152 0.000 Years 6.5 12.2 0.000 Avg Growth Rate 266.3% 188.8% 0.006 Deal Profit Dollars 22,236,724 18,347,816 0.064 Return on Capital 16.3% 53.8% 0.046 Exit year 2001 1999 0.000 Tech Bubble 0.28 0.11 0.000 Exit VC activity (M's) 288.5 144.3 0.000 Founding VC Activity (M's) 238.4 115.7 0.000 Same State 0.32 0.25 0.006 Shareholder's Equity (M's) -2.17 3.56 0.000 Assets (M's) 12.79 9.63 0.007 Revenue (M's) 16.84 18.33 0.449 Retained Earnings (10,310,733.73) 3,310,482.26 0.000 Paid in Capital 13,919,446 95,055 0.000 Total Cashout 37,051,885 18,442,152 0.000 Years 6.5 12.2 0.000 Avg Growth Rate 266.3% 188.8% 0.006 Deal Profit Dollars 22,236,724 18,347,816 0.064 Return on Capital 16.3% 53.8% 0.046 Exit VC activity (M's) 288.5 144.3 0.000 Founding VC Activity (M's) 238.4 115.7 0.000 Same State 0.32 0.25 0.006 Shareholder's Equity (M's) -2.17 3.56 0.000 Assets (M's) 12.79 9.63 0.007 Revenue (M's) 16.84 18.33 0.449 Retained Earnings (10,310,733.73) 3,310,482.26 0.000 Paid in Capital 13,919,446 95,055 0.000 Total Cashout 37,051,885 18,442,152 0.000 Years 6.5 12.2 0.000 Avg Growth Rate 266.3% 188.8% 0.006 Deal Profit Dollars 22,236,724 18,347,816 0.064 Return on Capital 16.3% 53.8% 0.046 Exit VC activity (M's) 288.5 144.3 0.000 Founding VC Activity (M's) 238.4 115.7 0.000 Same State 0.32 0.25 0.006 Shareholder's Equity (M's) -2.17 3.56 0.000 Assets (M's) 12.79 9.63 0.007 Revenue (M's) 16.84 18.33 0.449 Retained Earnings (10,310,733.73) 3,310,482.26 0.000 Paid in Capital 13,919,446 95,055 0.000 Total Cashout 37,051,885 18,442,152 0.000 Years 6.5 12.2 0.000 Avg Growth Rate 266.3% 188.8% 0.006 Deal Profit Dollars 22,236,724 18,347,816 0.064 Return on Capital 16.3% 53.8% 0.046 Exit VC activity (M's) 288.5 144.3 0.000 Founding VC Activity (M's) 238.4 115.7 0.000 Same State 0.32 0.25 0.006 Shareholder's Equity (M's) -2.17 3.56 0.000 Assets (M's) 12.79 9.63 0.007 Revenue (M's) 16.84 18.33 0.449 Retained Earnings (10,310,733.73) 3,310,482.26 0.000 Paid in Capital 13,919,446 95,055 0.000 Total Cashout 37,051,885 18,442,152 0.000 Years 6.5 12.2 0.000 Avg Growth Rate 266.3% 188.8% 0.006 Deal Profit Dollars 22,236,724 18,347,816 0.064 Return on Capital 16.3% 53.8% 0.046 Acceleration! Improved Wins Pain of Capital Intensity Diminishing Marginal Returns to Raising Capital • Fail at 90% for earners vs. 10% for burners: equal ROIC • Raise past $1.1M = marginal effect of dilution > acceleration

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