<ul><li>ACCESSING ANGEL & VENTURE CAPITAL </li></ul><ul><li>A  PRESENTATION TO </li></ul><ul><li>FROM </li></ul><ul><ul><u...
NOEG – An Overview  <ul><li>Incorporated non-profit with a volunteer board. </li></ul><ul><li>Funding from FedNor. </li></...
NOEG – Accomplishing the Mission. <ul><li>Formation of local/regional angel investor networks. </li></ul><ul><li>Building ...
Angel/VC Investment Landscape Angels 48,000 Deals $22-$24B 2004  Investment  In  North America VCs 2,876 Deals $21B
The Traditional Funding  Landscape – Where Angels & VC’s fit <ul><li>HIGH </li></ul><ul><li>Level of  </li></ul><ul><li>In...
The Funding Landscape “After the Meltdown” <ul><li>HIGH </li></ul><ul><li>Level of  </li></ul><ul><li>Investment Risk </li...
Impact on Entrepreneurs <ul><li>Cash is king (cash-flow) </li></ul><ul><li>Must learn to bootstrap (do more with less) </l...
Impact on Investors <ul><li>Potential reduced investment capacity </li></ul><ul><li>Increased risk of dilution </li></ul><...
Angels & VC’s Compared & Contrasted +1.5 million +++ $100,000 to $1.5 million (syndicating trend today in order to make la...
Angels & VC’s Compared & Contrasted More than angels, need to make a minimum number of investments in a given year Less th...
Angels & VC’s Compared & Contrasted $5 million and above Less than $3 Million Post-money Valuations Less negotiable Somewh...
Contact Me: <ul><li>Thank You and Questions </li></ul><ul><li>Jim Noble, NOEG Regional Coordinator by </li></ul><ul><li>te...
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Presentation: Accessing Angel and Venture Capital

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Presentation: Accessing Angel and Venture Capital

  1. 1. <ul><li>ACCESSING ANGEL & VENTURE CAPITAL </li></ul><ul><li>A PRESENTATION TO </li></ul><ul><li>FROM </li></ul><ul><ul><ul><li>February 19, 2009 </li></ul></ul></ul><ul><ul><ul><li>Presented By: </li></ul></ul></ul><ul><ul><ul><li>Jim Noble </li></ul></ul></ul><ul><ul><ul><li>Regional Coordinator </li></ul></ul></ul><ul><ul><ul><li>Northern Ontario Enterprise Gateway (705) 377-7600 </li></ul></ul></ul><ul><ul><ul><li>1-866-924-7600 [email_address] </li></ul></ul></ul><ul><ul><ul><li>www.noeg.ca </li></ul></ul></ul>
  2. 2. NOEG – An Overview <ul><li>Incorporated non-profit with a volunteer board. </li></ul><ul><li>Funding from FedNor. </li></ul><ul><li>Mission to stimulate the flow of capital (equity) </li></ul><ul><li>investment and management expertise from northern investors into high-growth potential Northern Ontario companies. </li></ul>
  3. 3. NOEG – Accomplishing the Mission. <ul><li>Formation of local/regional angel investor networks. </li></ul><ul><li>Building links to other angel groups to increase investment capacity. </li></ul><ul><li>Help entrepreneurs prepare for investment – through our investor-ready programs. </li></ul><ul><li>Provide a process and link through which investor-ready entrepreneurs can access accredited investors. </li></ul>
  4. 4. Angel/VC Investment Landscape Angels 48,000 Deals $22-$24B 2004 Investment In North America VCs 2,876 Deals $21B
  5. 5. The Traditional Funding Landscape – Where Angels & VC’s fit <ul><li>HIGH </li></ul><ul><li>Level of </li></ul><ul><li>Investment Risk </li></ul><ul><li>Assumed by </li></ul><ul><li>Investor </li></ul><ul><li>Seed Start-Up Early Growth Established </li></ul><ul><li>Stage of Business </li></ul><ul><li>LOW </li></ul>Founder/Friends/ Family Government. Angels VC’s M&A/Equity Markets Commercial Banks
  6. 6. The Funding Landscape “After the Meltdown” <ul><li>HIGH </li></ul><ul><li>Level of </li></ul><ul><li>Investment Risk </li></ul><ul><li>Assumed by </li></ul><ul><li>Investor </li></ul><ul><li>Seed Start-Up Early Growth Established </li></ul><ul><li>Stage of Business </li></ul><ul><li>LOW </li></ul>Founder/Friends/ Family Government. Angels VC’s (VC Ghost Town) M&A/Equity Markets Closed Commercial Banks More Risk Adverse The Funding Gap for Start-Up’s and Early-Growth Companies is widening
  7. 7. Impact on Entrepreneurs <ul><li>Cash is king (cash-flow) </li></ul><ul><li>Must learn to bootstrap (do more with less) </li></ul><ul><li>Valuations will be less </li></ul><ul><li>Must be sure investors have deep enough pockets to get across the “funding gap” </li></ul><ul><li>Harder to get funded </li></ul>
  8. 8. Impact on Investors <ul><li>Potential reduced investment capacity </li></ul><ul><li>Increased risk of dilution </li></ul><ul><li>Getting “stuck” with no exit </li></ul><ul><li>BUT – ANGELS ARE STILL INVESTING </li></ul>
  9. 9. Angels & VC’s Compared & Contrasted +1.5 million +++ $100,000 to $1.5 million (syndicating trend today in order to make larger investments) Funded Amounts Invest other people’s money (institutions) Invest their own money + mentoring Investment V/C’s Angels
  10. 10. Angels & VC’s Compared & Contrasted More than angels, need to make a minimum number of investments in a given year Less than VC’s – have luxury of being selective Number of Investments each year Operating history, experienced management team, can scale, sustainable competitive advantage Chemistry with management, detailed go-to-market strategy, rapid growth potential Key reasons to invest V/C’s Angels
  11. 11. Angels & VC’s Compared & Contrasted $5 million and above Less than $3 Million Post-money Valuations Less negotiable Somewhat negotiable Terms V/C’s Angels
  12. 12. Contact Me: <ul><li>Thank You and Questions </li></ul><ul><li>Jim Noble, NOEG Regional Coordinator by </li></ul><ul><li>telephone at 1-705-377-7600, toll free 1- </li></ul><ul><li>866-924-7600 or through our website at </li></ul><ul><li>www.noeg.ca . </li></ul><ul><li>Thank you. </li></ul>

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