Recently, I had the opportunity to present at StartUp 2015 in Varna, Bulgaria. As part of Angelsbootcamp.org, we share our prorams with local startup ecosystems throughout Europe.

1. Do Angels Make Money?

2. Do Angels Make Money?

3. YES

4. Angel Data Shows 2.5x Returns Overall
Source: Kauffman Foundation,
NESTA (a UK-based entrepreneurship foundation),
the University of Washington, and Willamette University
Really, they do

5. Survey Says
Angel investors’ internal rate of return
(IRR) is between 18 and 38 percent…

6. Any ONE investment is likely to lose
money.
6 investments increases the chances of a
return greater than 1X.
But, there is a catch

7. Will You?

8. Probably NOT

9. Unless

10. • Your Active
• Bring Something to the Table
• Build a Portfolio
Differentiate

11. Kaufman studies have shown that active
investors are 3x more likely to realize a
return than passive investors.
Being Active

12. When you add value…
What is active?

13. •Domain expertise
•Hiring better talent
•Acquiring more customers
•Developing greater operational expertise
•Introductions to industry players or follow
on investments
Adding Value

14. Bring Something to the Table

15. Can you help this business scale faster &
smarter?
Why you?

16. How can you actually differentiate?
Sell something else, of course.
The Business Angel

17. • Your expertise,
• Your portfolio’s network effect,
• Your history of success,
• or….
Sell your personal brand

18. Focus on a specific sector and stage of
investment…
Focus

19. Early stage startup versus a growth-stage
business ready to scale.
• Challenges will be different.
• Market opportunities will be different.
• Expertise gaps will be different.
Different Needs

20. • Deliver relevant insights, ideas and
advice.
• Identify opportunities within the niche.
• Create a team capable of delivering on
those opportunities.
Deliver

21. To develop a portfolio strategy
Rinse & Repeat

22. Build a Portfolio

23. Do You Have the Money?
Portfolio of 10 Deals
• Initial investment - 10 x 50,000 =
500,000
• Dry powder – 10 x 25,000 =
250,000
Investment Pool 750,000

24. Do You Have the Deal Flow?
• Angel Clubs
• Online – AngelsList, Gust, Angels Den
• Personal Network

25. Do You Have Selection Intelligence?
Do Your Homework - Each investment has
to be done as though it’s your only one.

26. Term Sheet Basics
• Valuation considerations
• Securing the opportunity to invest
further in their winners
• Protecting yourself from being diluted if a
company begins to falter
• The connection between the term sheet
and an investor's control over a company

27. Do You Have a Team?
• Legal – Don’t know what a drag along
right is? Get Help
• Financial – Tax Credits, Capital Gains
• Others – Governance, Technical or
Operations

28. Can You Make Introductions?
• Mentors, Vendors, Personnel
• Other Investors – Can you help raise
the next round?
• Introductions to their first customer
or strategic partner
• Help find an exit

29. Your founders will
• Build better companies,
• Have more successful exits.
If Yes, then…

30. www.angelsbootcamp.org