Considering being an Angel Investor

836 views

Published on

Have you ever considered becoming an Angel Investor? Wondered why people join angel groups as opposed to going it alone? Then this session is for you.

Join MLA Chair and Angel Investor Gerard Buckley as he leads a session that will answer the following:

What is Angel Investing?
Why would someone be an Angel Investor?
Who are Angel Investors?
What types of companies do Angels invest in?
What is Maple Leaf Angels and what are the benefits of joining?

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
836
On SlideShare
0
From Embeds
0
Number of Embeds
15
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Considering being an Angel Investor

  1. 1. A n g e l 1 0 1 – T h e F u n d a m e n t a l s o f A n g e l I n v e s t i n g I s A n g e l I n v e s t i n g R i g h t f o r Y o u ?
  2. 2. 2 • I am Gerard Buckley – Founder & CEO of Jaguar Capital an Advisory Practice for Growth Companies in Governance, Financial Management & Financial Structuring – Chairperson of Board of Directors, Maple Leaf Angels Corporation & Investor in eight early stage companies – Certified Corporate Director of the Institute of Corporate Directors – Previously Entrepreneur in Residence with Incubes (An Internet Company Accelerator) – Member of Small & Medium Enterprise Committee of The Ontario Securities Commission – Investment Committee of MSV University, Halifax, NS – 32 yr. Career with Scotia Capital as a Financial Risk Management Advisor to Fortune 200 Companies: Rogers, Irving Group, Empire Co., Four Seasons, Bruce Power, OPG, Province of Ontario, Ford etc. Who Am I www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  3. 3. Agenda • What is Angel Investing • Who are Angel Investors • Why would someone be an Angel Investor • What type of companies do Angels invest In? • Angel Network in Canada • Halo Report 2013 • Who is Maple Leaf Angels and what are the benefits of joining • Q & A www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  4. 4. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  5. 5. What is Angel Investing • Angel Investing is individuals investing their personal money in the equity or debt of a Early or Growth Stage Company • Often referred to as Smart Money, it is where an individual wishes to invest their time or experience as well money in a start-up company. • People wishing to give back their experience so others may benefit which is often referred to as mentoring or serving on a company Advisory Board or BOD. • Angel Investing is Active Investing not Passive www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  6. 6. Who is an Angel Investor • A person prepared to invest their personal or family money • A person who can add value to the company • An accredited investor as defined by OSC • A member of an angel network • The majority of angel investment in Canada is completed by individuals >85% • Estimate of Cdn Angel Investment is 916mm in approx 1500 companies (VC about 2b) www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  7. 7. Profile of an Angel - Median Years investing 9 Number of Investments 10 Total Exits 2 Years as a Entrepreneur 14.5 Number of ventures founded 2.7 Age 57 Percent of net worth 10% Education Masters Degree Angel Resource Institute Source: Wiltbank Study 2007 www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  8. 8. Why Would Someone be an Angel Investor • Qualified Opportunities • Opportunity referral • Increased Capital Diversification • High Risk Asset Class …. Seeking High Returns • Favourable Valuation and Terms in comparison to VCs • Networking • Portfolio company mentoring or engagement • Shared Due-Diligence • Advisory Board and Board of Director Roles www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  9. 9. What Type of Companies Do Angels Invest In? • Companies who are in seed and early stage. • In technology, life sciences, ict, health care devices, med tech, clean tech, power solutions, fin tech, ….. • Solve a Problem, Secret Sauce or technology ....... USP, validated business model, Great management team www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  10. 10. Equity Capital Life Cycle www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  11. 11. What Angels Look For • High anticipated growth rate – Scalability • Experienced management team • Sustainable competitive advantage • Barriers to entry ie. Exclusive IP • Clear strategy for commercialization • Proof of concept or enterprise level validation • Business model anchored in Reality • Investor exit strategy in 5 to 8 years • Investing in what you know – vertical expertise • Coach ability of the entrepreneur • Amount of dilutive capital required www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  12. 12. Selection Criteria • Seed investment should be from $250k to $500K and early stage investments should be from $350k to $1,500K • Valuation 1 to 3.5 million (Halo 2013 median 2.5m) • The stage, quality of the management team, valuation and technology of companies are more important than the sector criteria • Quality is more important than quantity • In Canada 7.3% of companies get funded (93% don’t) • In Silicon Valley (1/300) get funded www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  13. 13. Investment Process 1. Pre-screening – MLA Staff 2. Curbside Mentoring or Individual Member Mentoring 3. Present to Investment Review Committee 4. Present at members meeting 5. Due-diligence Committee is formed and led by a member 6. Term Sheet is negotiated & agreed between parties 7. Investment is papered by lawyer 8. Member is appointed to board 9. Quarterly company reporting Outlined on MLA Website www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  14. 14. Factors that appear to impact investor outcome • Due diligence time: More hours of due diligence positively related to greater returns (> 40 hours) • Experience: An angel investor's expertise in the industry of the venture being invested • Participation: Angel Investors that interacted with their portfolio companies at least a couple of times per month mentoring, coaching, providing leads and monitoring performance experienced greater returns. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  15. 15. Solo Angel Investing • Process is time-consuming – Deal sourcing – Reading plans (MLA sees 250 Business Plans a year) – Meeting with entrepreneurs • Due Diligence is difficult – Finding Vertical experience – May require using outside experts • Legal Support is Expensive • Most have Family Offices – Super Angels Angel Resource Institute www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  16. 16. Angel Network’s in Canada • NACO – National Angel Capital Organization • 32 Angel Groups in Canada • They have collectively about 1000 to 1500 investors • Three large groups accounted for 58% • The majority have fewer than 50 members • 75% of groups set up since 2007 • Vast majority do volunteer due diligence • 12 Angel Groups in Ontario • Keiretsu Forum & Golden Horseshoe Venture Forum are Private For Profit Angel Groups www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  17. 17. Canadian Angel Group Investment Activity 2012 • 139 Investments in 2012 totaling 40.5 million, an increase from 2011 of 134 investments and a decrease in investment from 82.4M • Average investment is $314k down fr $614k • 50% of angel groups made over 6 investments in 2012, an increase of 20% over 2011 • 82% - Ont & Que, 16% West, 2% Atlantic • ICT (54%), Life Sciences (23%), Clean Tech (10%) • Valuation – Median 1.55m, Mean 2.06m • 55% of transactions involved a co-investor www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  18. 18. Angel Resource Institute – Halo Report – 2013 • Median Angel Round Size trends up to $700K Q4 from $550K Q3 • Early Stage Pre-Money Valuations remain stable at $2.5M; however, top valuations increased from $6.6M to $9.3M • 72% of deals occur in angel groups’ home states • 73% of Angel Deals are Syndicated or Co-Invested • Median Round Size $1.7M up y/y from $1.5M when co-invested • Share of Deals by Sector - Internet 38.5%(+), Healthcare 19.6%(-), Mobile & Telecom 16.2%(+), Software (non- Internet/mobile) 4.0%(-) • Interesting that the top US angel group in 2013 is Golden Seeds with 300+ members invests predominately in women led & controlled companies www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  19. 19. Maple Leaf Angels Corporation • Toronto based and in existence since 2007 • MLA has invested in 23 companies since inception in 2007 for $10,000,000 + • Registered with the OSC as a Exempt Market Dealer • Currently 38 members • Open and transparent – published funding process • Continual Entrepreneur support: Curb Side Mentoring, Volunteer Mentoring, Entrepreneur Workshops etc. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  20. 20. Maple Leaf Angels - Connects Our mandate is to connect experienced, accredited investors, and the brightest, most passionate entrepreneurs in an effective investment process. www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  21. 21. Maple Leaf Angels – Membership Benefits • Opportunity to engage with other members with investment insights & ideas • Give back and make a difference for entrepreneurs through mentoring and coaching • Access to collaborative investment opportunities through MLA’s presence within the startup ecosystem • Your investment dollars go further through government matching programs • You can take advantage of standardized initial screening processes and thereby benefit from a consistent approach to due diligence • You can harness the power of syndication that comes about when multiple members invest together. • Due diligence support • You have access to a common term sheet that is negotiated by MLA members www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  22. 22. The Entrepreneur Application Process • Start with www.mapleleafangels.com • There is a full education section for entrepreneurs • Companies apply using MLA’s Private Platform • Investment Review Committee • Monthly Member Investment Meetings • Due Diligence • Term Sheet www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels
  23. 23. Contact Information Gerard Buckley, BBA, FICB, ICD.D Managing Director Jaguar Capital Inc. (C) 416-884-9522 (W) 416-646-6789 g.buckley@jaguarcapital.ca gerard@mapleleafangels.com www.jaguarcapital.ca Twitter: @jaguarcapital Twitter: @gerardbuckley Slideshare: Jaguar Capital www.mapleleafangels.com | info@mapleleafangels.com | 416.646.6235 | @mapleleafangels

×