Michael Maddock - Getting ready for angel investment


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Michael Maddock - Getting ready for angel investment

  1. 1. Getting Ready for Angel Investment How HALO Works!
  2. 2. Welcome Michael Maddock CEO, South East BIC
  3. 3. South East BIC Supporting Regional Enterprise <ul><li> Innovative Start-Ups </li></ul>Existing SMEs State Agencies <ul><li>What: </li></ul><ul><li>Support the generation and development of new innovative enterprises </li></ul><ul><li>Assist existing enterprises to expand and innovate </li></ul><ul><li>Complement existing regional organisations of enterprise support </li></ul><ul><li>How: </li></ul><ul><li>By providing high quality specialised business consultancy in collaboration with other local and regional organisations with a Client 1 st Approach </li></ul>
  4. 4. SEBIC’s Market Commercialisation CEBs Enterprise Ireland SEBIC Local Concept National International Global
  5. 5. SEBIC Services <ul><li>Concept Development </li></ul><ul><li>Feasibility Studies </li></ul><ul><li>Market Research </li></ul><ul><li>Sounding  Board </li></ul><ul><li>Business Planning </li></ul><ul><li>Financial Planning </li></ul><ul><li>Technology & ICT </li></ul><ul><li>Marketing Strategy </li></ul><ul><li>Incubation </li></ul><ul><li>Facilities </li></ul><ul><li>Infrastructure </li></ul><ul><li>Support </li></ul><ul><li>Networking </li></ul><ul><li>Introduction to financiers </li></ul><ul><li>Business Consultants </li></ul><ul><li>Govt. Agencies </li></ul><ul><li>Entrepreneurs </li></ul><ul><li>Business Angels </li></ul><ul><li>EU – Link </li></ul><ul><li>EBN Network </li></ul><ul><li>EU Projects </li></ul>
  6. 6. <ul><li>Michael Maddock </li></ul><ul><li>Chief Executive, 35 years business experience, former European Treasurer Dell Inc, FCMA, FCT; Specialises in Corporate Finance & Strategy, Email: mmaddock@sebic.ie </li></ul><ul><li>Aidan Shine </li></ul><ul><li>Asst. CEO & Co. Secretary; 6 years in Corporate Accounting in Japan and Ireland with Alps; BBS, MBA; Specialises in Finance; </li></ul><ul><li>Area: Waterford City and Wexford, </li></ul><ul><li>Email:ashine@sebic.ie </li></ul><ul><li>Carole Thurston </li></ul><ul><li>Business Consultant, 22 yrs in IT in UK and Ireland with Sears, specialist VC and Internet Start-up; Specialises in IT Area: South Tipperary and County Waterford Email:cthurston@sebic.ie </li></ul><ul><li>Rosemary Ward </li></ul><ul><li>Business Consultant, 11 y rs Marketing & Sales experience with Waterford Crystal, btw and eircom. B. Comm (International) UCD; Specialises in Marketing </li></ul><ul><li>Area:Kilkenny & Carlow, Email:rward@sebic.ie </li></ul><ul><li>Denise Stoneman </li></ul><ul><li>Administration Co-Ordinator, Email:dstoneman@sebic.ie </li></ul>SEBIC TEAM
  7. 8. Business Angels Interventions SEED START-UP EARLY GROWTH SUSTAINED GROWTH CAPITAL NEEDS TIME HIGH RISK LOW RISK Business Angels Formal Venture Capital IPO
  8. 9. Background to Halo Business Angels <ul><li>Supported by EI and InterTrade Ireland </li></ul><ul><li>BIC Pilot and Activity to Date </li></ul><ul><li>Website http://www.businessangels.ie </li></ul>Time Period Number of Deals Angel Money Raised (Euro) Total Other Monies Leveraged Pre-2008 10 1,015K Calendar 2008 13 2,285K Calendar 2009 18 3,652K YTD 2010 10 1,975k Total 51 8,927K 9,805K
  9. 10. Halo Business Angels Partnership <ul><li>Network managed by Dublin BIC in association with the other Irish BICs in Cork, Waterford and Galway </li></ul><ul><li>Member of HBAN and EBAN networks </li></ul><ul><li>HBAP has 290+ investors registered nationally </li></ul><ul><li>51 deals (17 syndicates) completed with €8.9m invested </li></ul><ul><li>Further €9.8m leveraged from public and private sector </li></ul><ul><li>Substantial interest with Venture Capitalists and Advisors </li></ul><ul><li>Continually adding investors and companies </li></ul>4 th Best Angel Network in EBAN in 2009
  10. 11. Halo Business Angels Partnership <ul><li>B usiness Angel </li></ul><ul><li>Informal private investor with smart money (finance + expertise) </li></ul><ul><li>Willing to invest €25,000 to €250,000 </li></ul><ul><li>Willing to share their managerial skills, knowledge and networks </li></ul><ul><li>No sector preference </li></ul><ul><li>Often prefer to invest in their region of residence </li></ul><ul><li>Seeking profit </li></ul>
  11. 12. Siding with Angels – Nesta 2008 <ul><li>Risky Business </li></ul><ul><li>56% failed to return Capital </li></ul><ul><li>9% 10 times capital </li></ul><ul><li>Overall 2.2 invested capital </li></ul><ul><li>Money invested 4 years - 22% ROI </li></ul>
  12. 13. Best Practice <ul><li>Entrepreneurs make best investors </li></ul><ul><li>Invest where you have expertise </li></ul><ul><li>Some Involvement - not too much </li></ul><ul><li>20 Hours Due Diligence </li></ul><ul><li>Syndication - works best </li></ul><ul><li>Average - 3 years to fail, 6 years to Success </li></ul><ul><li>Average investment £46k for 8% </li></ul>
  13. 14. Some Recent Local Engagements
  14. 15. Local Successes <ul><li>7 Deals recently : Angel Investment €1,025k Enterprise Ireland €650k = €1.6m </li></ul><ul><li>Seedcorn and Bright Ideas Challenge </li></ul><ul><li>Dragon’s Den - 3 of 4 SEBIC Clients got finance ! </li></ul>
  15. 16. Looking for Funding ? <ul><li>Promoters now have an alternative place to go for financing. </li></ul><ul><li>We make it easier to access private equity for your business </li></ul><ul><ul><li>By evaluating your plan to make sure the information investors need is there, </li></ul></ul><ul><ul><li>By putting your plan in front of investors </li></ul></ul><ul><ul><ul><li>Who are looking for investment opportunities, </li></ul></ul></ul><ul><ul><ul><li>Who are interested in your particular ………? (technology, sector, location, amount range, stage of development and similar) </li></ul></ul></ul><ul><ul><li>By monitoring and facilitating the exchanges between you and the potential investor. </li></ul></ul><ul><li>Increased pool of private investors available to you. </li></ul><ul><li>Opportunities for you to meet investors. </li></ul>
  16. 17. The Process - Promoter <ul><li>Submit an Application Form with your Business Plan </li></ul><ul><li>Meeting to evaluate your plan </li></ul><ul><li>We develop an 8-10 line summary with key detail and we: </li></ul><ul><ul><li>Contact (some) individual investors directly by telephone/e-mail </li></ul></ul><ul><ul><li>Notify specific investors by e-mail </li></ul></ul><ul><ul><li>Post company summaries on website – www.businessangels.ie </li></ul></ul><ul><li>We also develop more detailed summaries (1 & 4 pages) that are available to interested investors </li></ul><ul><li>We monitor investor interest and deal with questions or issues raised </li></ul><ul><li>We arrange, and facilitate, initial meetings with investors & investor forums </li></ul><ul><li>We keep you advised on investor interest and feedback </li></ul>
  17. 18. In Summary We are Looking For ? <ul><li>Companies </li></ul><ul><ul><li>Ambitious, growth-orientated </li></ul></ul><ul><ul><li>Clear in what they want to do </li></ul></ul><ul><ul><li>Good promoter / credible management </li></ul></ul><ul><ul><li>Good business plan </li></ul></ul><ul><li>Investors </li></ul><ul><ul><li>Who want to invest </li></ul></ul><ul><ul><li>Minimum amount available to invest of €25k (minimum) </li></ul></ul><ul><ul><li>Not looking to buy “a job” </li></ul></ul><ul><ul><li>Need to be able to afford to lose their investment </li></ul></ul>Register with us now! Call SEBIC 051 356300
  18. 19. How to contact us <ul><li>South East Business & Innovation Centre Ltd. </li></ul><ul><li>Unit 1B, Industrial Park, </li></ul><ul><li>Cork Rd, </li></ul><ul><li>Waterford. </li></ul><ul><li>Tel: (051) 356300 </li></ul><ul><li>Web: www.sebic.ie </li></ul>