Introduction to Heron CapitalInvestment • Significant growth aspirations across type all sectors in the South West Size • £200k-£2million enterprise valueDevelopment • Entrepreneur driven stage • First round of external investment
Angel Investment Why? Capital appreciation-Income-Capital preservation…. ….definitely not cheap finance…. How? Active vs Passive When? Work completedHow much? Risk-Liquidity-Return Horizons-Own resources
StrategyInvestments that can demonstrate: • Skill Passion. • Experience • Qualifications Commerciality Skill • Relationships • Passion • Commitment • Adaptive • Commerciality • Focus on revenue • Conscious of costs • Risk weighted investment
What we look for in the management•Ateam that can be complemented•Unique set of skills relative to competitors•Adaptive with ability to recognise skill gaps•Ambition to delivery growth • Understanding competitive environment • Recognition of uncertainty and perceived risk
What we look for in a Business Our objective During the journeyAt investment • Product or service • Increase Turnover • Focus on organic with 4x growth differentiation • Profit growth to • Consider accretive • Ability to scale exceed turnover alliances • Significant or growth • Reinforcement of growing market • Over a 3-5 years business model • Investment in technology, sales, marketing and management
The journey • Aspirations • Time frames • Due diligence- Advisors/gaps The deal • Agreements • Complementing each other- Contacts, skills, challenge • Building the team, maintaining competitiveness • Work to a plan but be flexible to adaptDriving value • Develop options • Choosing advisors • Type of exit Exit
Summary•Angel investment can be a very rewardingexperience (personal and financial)•Having a clear strategy is key to successful longterm investment•Selecting the right company is just the start ofthe journey•Get involved and contribute to value creation!!