Carmen Gicante

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Carmen Gicante

  1. 2. <ul><li>SWOAG </li></ul><ul><ul><li>Group of “Accredited” investors </li></ul></ul><ul><ul><li>Based in London </li></ul></ul><ul><ul><li>Currently 33 members </li></ul></ul><ul><ul><li>Linked to 300+ Angel groups internationally </li></ul></ul><ul><li>Purpose </li></ul><ul><li>      </li></ul><ul><ul><li>Support economic development London / Southwestern Ontario </li></ul></ul><ul><ul><li>Foster an entrepreneurial spirit </li></ul></ul><ul><ul><li>Identify and act on investment opportunities </li></ul></ul><ul><ul><li>Promote investor best practices </li></ul></ul>
  2. 3. <ul><li>What Is an Angel Investor </li></ul><ul><ul><li>High net-worth individual ( Accredited) </li></ul></ul><ul><ul><li>Invests in high risk, early stage venture </li></ul></ul><ul><ul><li>Achieve higher returns than public markets provide </li></ul></ul><ul><ul><li>Specializes in industries or technologies they understand </li></ul></ul><ul><ul><li>Active investor - time, experience, contacts </li></ul></ul><ul><ul><li>Geographic focus </li></ul></ul>
  3. 4. <ul><li>Investment </li></ul><ul><ul><li>Individual investment ~$25,000 ~ $100,000 per transaction </li></ul></ul><ul><ul><li>Group~ $250,000 ~to $750,000 </li></ul></ul><ul><ul><li>One to four transactions per year </li></ul></ul><ul><ul><li>Average term holding investment- eight years </li></ul></ul><ul><ul><li>Returns 10X investment ( risk and added value ) </li></ul></ul><ul><ul><li>Companies with exceptional opportunities for high return </li></ul></ul><ul><ul><li>Potential to achieve high growth, strong market position, and sustainable advantages </li></ul></ul><ul><ul><li>$10 million in annual revenue within five years </li></ul></ul><ul><ul><li>Clear Exit Position </li></ul></ul>
  4. 5. <ul><li>Investment Criteria </li></ul><ul><li>Management team </li></ul><ul><ul><li>Track record leadership and performance </li></ul></ul><ul><ul><li>Passion and commitment </li></ul></ul><ul><ul><li>Skin in the game </li></ul></ul><ul><ul><li>Credibility </li></ul></ul><ul><ul><li>Open/comfortable with receiving input by Angels </li></ul></ul><ul><li>Market opportunity </li></ul><ul><ul><li>Address major problem in significantly large market (e.g. a $50+ million market) </li></ul></ul><ul><ul><li>Strategy to claim significant share (e.g. 20%+) </li></ul></ul><ul><li>Use of proceeds </li></ul><ul><ul><li>Accelerate achievement of key milestones </li></ul></ul><ul><ul><li>Increase the company’s value </li></ul></ul><ul><ul><li>E.g. research and product development, building sales and marketing infrastructure, hiring key executives etc. </li></ul></ul>
  5. 6. <ul><li>Investment Criteria cont’d </li></ul><ul><li>Growth potential </li></ul><ul><ul><li>Grow quickly </li></ul></ul><ul><ul><li>Manage the scale of growth </li></ul></ul><ul><ul><li>Plan to generate significant profits beyond initial product idea e.g. multiple sources of revenue </li></ul></ul><ul><ul><li>Well-conceived financial projections - sound assumptions. </li></ul></ul><ul><li>Competitive advantage </li></ul><ul><ul><li>Proprietary features to distinguish from potential competitors </li></ul></ul><ul><ul><li>Provide barriers to entry </li></ul></ul><ul><ul><li>Competitive advantage </li></ul></ul><ul><ul><ul><li>e.g. IP protection, exclusive licenses, exclusive marketing and distribution relationships, strong brands, scarce human resources (e.g. knowledge and skills), access to scarce raw materials etc </li></ul></ul></ul>
  6. 7. <ul><li>Investment Criteria cont’d </li></ul><ul><li>Fit </li></ul><ul><ul><li>Coaching and contact network </li></ul></ul><ul><ul><li>Fit between Angels and business idea </li></ul></ul><ul><li>Technology </li></ul><ul><ul><li>First-of-a-kind new ideas </li></ul></ul><ul><ul><li>nice-to-have Vs need-to-have product or service </li></ul></ul><ul><ul><li>Technology proven and verifiable </li></ul></ul><ul><ul><li>Clear path to commercialization </li></ul></ul><ul><li>Exit Strategy </li></ul><ul><ul><li>10X times initial investment, within eight years </li></ul></ul><ul><ul><li>Clear exit strategy - how to extract such returns </li></ul></ul><ul><ul><li>Specific steps to achieve the exit. </li></ul></ul>
  7. 8. <ul><li>Funding Process </li></ul><ul><li>Self Assessment </li></ul><ul><ul><li>Angel capital - is right for your company.  </li></ul></ul><ul><ul><li>Online application http:// www.swoangel.com / </li></ul></ul><ul><ul><ul><li>initial screening presentation </li></ul></ul></ul><ul><ul><ul><li>referred to partner for help in business plan </li></ul></ul></ul><ul><ul><ul><li>turned down, unlikely to receive funding </li></ul></ul></ul><ul><li>Screening Meeting </li></ul><ul><ul><li>Determine if idea of interest </li></ul></ul><ul><ul><li>Present to the full membership </li></ul></ul><ul><li>Presentation to Membership </li></ul><ul><ul><li>Elaborate on your business plan </li></ul></ul><ul><ul><li>Deliver a 15-minute presentation </li></ul></ul><ul><ul><li>Address questions for an additional 15 minutes  </li></ul></ul>
  8. 9. <ul><li>Funding Process </li></ul><ul><li>Term Sheet Negotiation </li></ul><ul><ul><li>Interested Angels( lead Angel) present term sheet </li></ul></ul><ul><ul><li>Defines structure of investment deal, type of equity and Board of Directors representation </li></ul></ul><ul><ul><li>Deal executed when all parties satisfied with terms / language in the term sheet, the </li></ul></ul><ul><li>Funding & Beyond </li></ul><ul><ul><li>“ You now you have access to a network of value-added contacts and experienced professionals who can provide essential guidance for the growth and success of your venture” </li></ul></ul>

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