Jordan Green @ Transmedia Victoria


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"About Angel Investors for Transmedia Businesses" was presented at, Jan 27th 2011

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Jordan Green @ Transmedia Victoria

  1. 1. About Angel InvestorsforTransmedia Businesses<br />Presented by: Jordan Green<br /> Melbourne Angels, President/Founder<br /> AAAI, Deputy Chairman/Co-Founder<br />
  2. 2. A Little About Angel Investors<br />An Angel is a person who invests his/her own money and time in an unlisted growth company as a personal decision with the objective of realising a capital return in the foreseeable future.<br />Financial Capital + Intellectual Capital<br />
  3. 3. Where’s the money?<br />Funding Choices:<br />Family, Friends & Fools $10,000’s<br />Banks $10,000-100,000’s<br />Strategic Investors $10,000-1,000,000’s<br />Angel Investors $10,000-100,000’s<br />Venture Capital $1,000,000’s<br />Private Investors $10,000-1,000,000’s<br />Private Equity $100,000-1,000,000’s<br />IPO $1,000,000-10,000,000’s<br />Where Angels Fit In<br />2008:20 New Deals<$60m<br />2009:10 New Deals<$25m<br />2010:10 New Deals<$25m<br />Source: AVCAL Yearbooks<br />Angels in Australia in 2009*<br /><ul><li>12 Angel Groups (4 more in development)
  4. 4. ~16,000 active Angels in Australia
  5. 5. $1.4b invested in over 5,000 companies
  6. 6. 26,500 jobs fuelled by Angel investment</li></ul>*AAAI National Angel Survey 2009<br />
  7. 7. A Little About Angel Investors<br />The Role of the Angel Investor <br />Early stage funding<br />Mentor and coach<br />Business acumen and governance<br />Network of professional advisors, other Angels and other capital<br />Sector knowledge and connections to potential customers, suppliers, personnel and acquirers<br />Design and facilitate exit<br />EXIT<br />
  8. 8. A Little About Angel Investors<br />Investment Goals<br />10x or better return on investment<br />3-5 years to exit<br />Imply<br />Scalability of large markets, often foreign<br />Strong alignment with entrepreneur<br />Focus on value growth rather than dividends<br />Angels are individuals – it depends!!<br />
  9. 9. Deal Flow<br />Personal & Personnel<br />Screening<br />Financial<br />Competition<br />Intellectual Property<br />Evaluation<br />VISIO CORPORATION<br />Markets<br />Business Model<br />$<br />Terms Sheet<br />Due Diligence<br />$<br />$<br />Invest<br />Manage Investment<br />3-6 months<br />2-8 weeks<br />1-6 years<br />3-6 months<br />Exit<br />Investment Process<br />
  10. 10. Valuing Early Stage Opportunities<br />‘Value is in the eyes of the beholder’<br />Customers buy benefits<br />Investors invest in the future<br />Management is as important as design expertise<br />Have a plan - certainty for customers & investors<br />Capital Efficiency - Incremental vs. Big Bang<br />Intellectual Capital is ultimately worth more than Intellectual Property<br />Design expertise/reputation<br />Industry knowledge/access<br />Market knowledge/access<br />Technology knowledge/access<br />
  11. 11. Two Types of Business Value<br />Growth Business<br />[Value to Sell]<br />Lifestyle Business<br />[A Job for Life]<br />Critically dependent on entrepreneur<br />Low and slow to competitive advantage<br />May take many years to stabilize and achieve scale<br />ROI may be small given low potential valuations relative to time and risk<br />Cash flow and/or customers are valuable to an acquirer<br />Capital captive<br />Business with sustainable value independent of entrepreneur<br />Invest in IP to create competitive advantage<br />Aggressive growth<br />Assets or competencies or customers or cash flow are valuable to an acquirer<br />Capital returns<br />
  12. 12. How to Approach Opportunity<br />Know yourself<br />Is your business suitable for an investor?<br />Is your business an appealing investment?<br />Can you work with a business partner?<br />Can you share control?<br />For which investor is your investment opportunity best suited?<br />Would you invest?<br />
  13. 13. How to Approach Opportunity<br />Be Prepared<br />Plan a path forward<br />Have the skills and tools to navigate the inevitable detours<br />Know what to expect<br />Know when to walk away<br />Know yourself<br />
  14. 14. Transmedia – the challenge!<br />Average Angel investor is over 45<br />Technical background but, not current<br />Business background but, not web<br />Eyeballs not saleable value on their own<br />Investor is not the user<br />Transmedia is industry convergence, makes exit value & targets harder<br />No transmedia success stories/track record<br />
  15. 15. Transmedia – the opportunity!!<br />Emerging markets<br />Low barriers to business entry<br />No dominant player(s)<br />Value built across established industries<br />Value in product not advertising<br />Technically innovative<br />Commercially agile<br />Sparks the imagination – it’s exciting!!<br />
  16. 16. Thank you ….<br /><br />
  17. 17. A Little About Angel Investors<br />An Angel Group is a collection of individual Angel Investors who combine under a common brand with defined rules of membership and conduct to collectively identify, review, select, evaluate, invest in and exit from Angel investments.<br />
  18. 18. Why join an Angel Group?<br />Deal Flow<br />Process, Discipline, Best Practices<br />Risk mitigation<br />Diversification by volume<br />Diversification by scope<br />Time<br />Syndication<br />Community<br />Fun!!<br />