This document discusses the role of angel investors, particularly women angel investors, in fueling innovation and economic growth. Some key points: - Angel investors provide early-stage funding and are responsible for the largest percentage of deals in the entrepreneurial ecosystem. However, the number of active angels has declined in recent years. - Increasing the number of women angel investors is one way to help reverse this decline, as the rate of growth of female angels has exceeded the average. The Pacific Northwest is well-suited for women angel investors. - Attending the Seattle Angel Conference (SAC) is highlighted as an opportunity for potential new investors to learn about angel investing through a structured 12-week program with mentorship opportunities

1. November 14, 2018
Elaine Werffeli
elaine@elaingelinvest.com
Presented at SAC XIV Final Event
Economic Growth & Accelerating Innovation
through Angel Investing:
How women can play a pivotal role

2. Angel Investors play an important
role in the Entrepreneurial
Ecosystem

3. Angels provide Early Capital
Source: Q3 2018 Venture Monitor by PitchBook and NVCA

4. Angels are responsible for the Largest % of Deals in
the Ecosystem accelerating innovation
Source: Q3 2018 Venture Monitor by PitchBook and NVCA

5. And support Startups with Billions of Dollars in
funding
$2.8
$4.2
$5.7
$6.5
$8.2
$6.7
$7.3
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017
Angel & Seed funding in Billions
Source: Q3 2018 Venture Monitor by PitchBook and NVCA

6. The Number of Active Angels in the US has
declined over the last three years
273K
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Avg
Trend of Active Angel Investors in US
Source: Center for Venture Research

7. How to reverse this recent decline in
Angel Investors to provide greater
economic impact and continued
innovation acceleration?

8. Increase Awareness of Opportunity to Angels
that simply don’t have their wings yet
5.3 Million*
individuals are “defined as those having
investable assets of US$1 million or more,
excluding primary residence
Source: *2018 World Wealth Report compiled by Capgemini; **2010 Census
4.5 Million**
Households made over $200K (3.9% of US
HH)
Only capturing
3%-6%
Of this potential
today

9. One way to increase the overall number is to
increase the number of Women Angel Investors
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
CY
2004
CY
2005
CY
2006
CY
2007
CY
2008
CY
2009
CY
2010
CY
2011
CY
2012
CY
2013
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2015
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2016
CY
2017
Angel Investor Trend 2004-2017
All Other Angels Female Angels
20%
Source: Center for Venture Research

10. The rate of growth of Female Angels has been
greater than the average..keep momentum
288,380
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
CY
2004
CY
2005
CY
2006
CY
2007
CY
2008
CY
2009
CY
2010
CY
2011
CY
2012
CY
2013
CY
2014
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2015
CY
2016
CY
2017
Active Angel Investors Growth from 2004 to 2017 is
28%
Source: Center for Venture Research
5%
20%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
CY
2004
CY
2005
CY
2006
CY
2007
CY
2008
CY
2009
CY
2010
CY
2011
CY
2012
CY
2013
CY
2014
CY
2015
CY
2016
CY
2017
Female Angel investor Growth from 2004 to 2017 is
400%

11. There is a positive cycle between Angels and
Entrepreneurs that creates long term growth
Angels
Entrepreneurs
55% of Angel Investors were
previously a founder or CEO
of their own startup
Increasing number of
successful Entrepreneurs in
the short run can help the
number of Angels in the long
run
Source: The American Angel: Report from ACA and Wharton Entrepreneurship

12. The growth in Women Owned Businesses seeking
funding can help grow the number of Female
Angels down the road
5%
9%
14% 12%
17%
11%
13%
12%
22% 19%
26%
25% 26%
20%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
CY
2004
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2005
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2006
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2007
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2008
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2009
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2010
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2011
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2012
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2013
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2015
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2016
CY
2017
Female Angel Investors
(% of total)
5%
9%
13% 13%
16%
21% 21%
12%
16%
23%
36%
29%
30%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
CY
2004
CY
2005
CY
2006
CY
2007
CY
2008
CY
2009
CY
2010
CY
2011
CY
2012
CY
2013
CY
2014
CY
2015
CY
2016
CY
2017
Women Owned Businesses Seeking Funding
(% of total)
Source: Center for Venture Research

13. Average Yield: ~ 1 in 5 Funder Seekers Receive $
19%
18%
0%
5%
10%
15%
20%
25%
30%
35%
CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Avg
Yield Rate Comparison
Avg Yield Rate WOB Yield Rate
Source: Center for Venture Research

14. So lets take a look at our local
Angel Ecosystem

15. 7% of the 2017 Angel Deals are in the Northwest
Source: Angel Resource Institute 2017 Halo Report

16. 2017 Pacific Northwest Angel Investment Stats

18. Majority of Seattle Angel Groups are at or above
the National Female Participation average of 20%
30%
25% 25%
21% 21% 20% 20%
15%
4%
20%
0%
5%
10%
15%
20%
25%
30%
35%
SAC AOA Keiretsu PSVC E8 Wings Grubstakes SeaChange Swan Avg
% Female in Seattle Angel Groups

19. Seattle is brimming with female Angels and
Investment Mentors
 Angels like Sarah Imbach and
Serena Glover
 Angel Fund Managers like Susan
Preston, Brianna McDonald and
our own Yoko Okano
 VCs like Heather Redmond and
Lisa Nelson
 The Pacific NW is great for
women angel investors

20. Closing the near term gap:
How do we create and capture value by mobilizing Women Angel Investors

21. Mobilize New Female Angel Investors through
the decision path
Broaden
Awareness
Confirm Meet
Accreditation
requirements
Breakdown
down
Barriers to
Entry
Highlight unique
opportunity &
benefits
Offer
Structured
pathways to
join
1
24
5
3

22. Why haven’t more Women become Angel
Investors to date?
 Don’t know about Angel Investing as an opportunity: Need to chat it up
 Don’t think they would qualify: $1M Investable or $200K/yr or $300K/yr with
Spouse
 Focused on Philanthropic Areas: Leverage Skillset to do both to increase your
impact
 Risk Profile: Limit Investment $ in a diversified investment portfolio
 Not confident in their skillset: Learn by Doing to apply skills you may already have
and attending free Training sessions by Angel groups
 Believe need to invest large $ sums: Can invest with checks as small as $5,500
 No one has invited them in: Welcome!
 Need to Understand Specifics: Need an opportunity to talk with an Angel about
their experience
1
2
3

23. Why Do Women Angels I know Invest?
 Financial Return
 Have a front seat on latest innovation trends
 High Energy and the Enthusiasm is contagious
 Meet like minded colleagues who have become friends
 Personal Growth and Learning
 Leverage Experience through advise and mentorship to Start-ups as a way
to give back
 Share learnings with new Angel investors
 Personal happiness and fulfillment – in making a difference
 Its Fun!
4

24. SAC Summary
 Meet every Tuesday for 2 hours for 12 Weeks
 Have 2 Conferences a year ( Seattle & The East side)
 Investment amount is $5,500
 Half returning Angels, Half new Angels
 Overview:
 Can stay in SAC in future rounds, move to other groups, invest on your
own – All existing Angel groups have SAC alumni and SAC was the genesis
for Grubstakes and SeaChange
5
50+ 24 12 6 Due
Diligence 1

25. Angel Investing is Good for the
Economy & Innovation
The Pacific NW is Great for Angels, and
especially Great for Women Angels
So come Join us for SAC XV! Find one of
us today and start the conversation!