This presentation " Accessing Capital from an Angel Investment Network" is being delivered to Maple Leaf Angels Entrepreneur Workshop by Gerard Buckley, Managing Director, Jaguar Capital

1. ENTREPRENEUR WORKSHOP:
Accessing Capital From an Angel
Investor Network
Your First Professional Investment
Who, What, When, Where and How?

2. Who Am I
• I am Gerard Buckley
– Founder & CEO of Jaguar Capital an Advisory Practice for Growth
Companies in Financial Management, Financial Structuring &
Governance
– Chairperson of Board of Directors, Maple Leaf Angels Corporation &
Investor in eight early stage companies
– Entrepreneur in Residence with Incubes (An Internet Company
Accelerator)
– Member of SME 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,
CAE etc.
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3. Agenda
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Who is an Angel Investor
Angel Network in Canada
NACO 2012 Survey
Halo Report – Q 2 - 2013
Maple Leaf Angels
Angel Investing is a changing
The Benefits for Entrepreneurs
Q&A
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5. 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)
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6. Angel Network’s in Canada
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NACO – National Angel Capital Organization
32 Angel Groups in Canada
They have collectively about 1000 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
13 Angel Groups in Ontario
Keiretsu Forum & Golden Horseshoe Venture Forum are
Private For Profit Angel Groups
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7. 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
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8. Angel Resource Institute – Halo Report – Q2 - 2013
• Median Angel Round Size trends down to $590K from
$680K
• Early Stage Pre-Money Valuations remain stable at
$2.5M
• 72% of deals occur in angel groups’ home states
• 74% of Angel Deals are Syndicated
• Median Round Size $1.95M up from $1.4M when coinvested
• Share of Deals by Sector - Internet 31.9%(-), Healthcare
20.9%(+), Mobile & Telecom 13.3%(-), Software (nonInternet/mobile) 4.5%(-)
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9. Angel Group Investment Distribution in USA
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10. Maple Leaf Angels Corporation
• Toronto based and in existence since 2007
• MLA has invested in 22 companies since inception in
2007 for $9,600,000
• Registered with the OSC as a Exempt Market Dealer
• Currently 45 members
• MLA conducted a strategic renewal in Nov 2011 with a
new business plan released in January 2012 and a new
BOD elected March 2012
• Open and transparent – published funding process
• Continual Entrepreneur support: Curb Side Mentoring,
Volunteer Mentoring, Entrepreneur Workshops etc.
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11. The Application Process
• Start with www.mapleleafangels.com
• There is a full education section for
entrepreneurs
• You apply using MLA’s Private Platform
• Investment Review Committee
• Monthly Member Investment Meetings
• Due Diligence
• Term Sheet
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13. Equity Capital Life Cycle
Introduction
Concept and
product
development
Growth
Maturity
Decline
Sales and
profit
Sales
Cash flow
Profit
Time
R&D
Grants
/ Love
Money
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Pre-Seed
& Seed
Angel
$
Start-Up
Angel
$
Round 1
VC $
Round 2
Exit
VC $
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14. Angel Group Benefits
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Qualified Opportunities
Opportunity referral
Increased Capital Diversification
Great Valuation and Favourable Terms in
comparison to VCs
Networking
Portfolio company mentoring or engagement
Shared Due-Diligence
Advisory Board and Board of Director Roles
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15. What Angels Look For
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High anticipated growth rate
Experienced management team
Sustainable competitive advantage
Barriers to entry
Clear strategy for commercialization
Proof of concept or enterprise level validation
Business model anchored in Reality
Investor exit strategy
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16. Selection Criteria
• 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
• The best of the best should only present and the
number of companies presenting should be
limited to one or two, introduced by someone
who is willing to sponsor or lead the investment
and due diligence process
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17. Selection Criteria
• Select the very best in seed and early stage
• Seed investment amounts should be from $250k
to $500K and early stage investments should be
from $350k to $1,500K
• Deal flow of members – both group investments
and private or small group investments should
be tracked and reported on, with clear
communication on which investments went
through MLA’s group due diligence
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18. Factors that appear to impact investor outcome
• Due diligence time: More hours of due diligence
positively related to greater returns
• 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.
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19. Five types of Angel Investors
1. The Coach Angel Investor
2. The Do’er Angel Investor
3. The CEO of a Public Company Angel
Investor
4. The Spectator Angel Investor
5. The Boss Angel Investor
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20. Traditional Angel Network is Changing
• Currently Southern Ontario Angel Investment
community has 13 Angel groups
• Government programs ( IAF, MaRS, OCE, IBI)
• Online - Angel List, Syndicates, The Funded, Gust
• Y Combinator, Tech Stars, 500 Start-ups, +110
Accelerators in Canada
• Incubators & Accelerator funds
• Crowd funding such as kickstarter.com and equity
crowd funding will follow
• Super Angels & Micro-VC’s
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22. Entrepreneur Benefits
Large capital source
Broad pool of Knowledge & Contacts
Efficient Process
Capital Connections
In many provinces there is investor tax
credit
• Leverage sources of funding (IAF, IBI,
BDC etc.)
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23. Target Investee Companies
• Companies who are in seed and early
stage, two for each meeting if the quality
can be found
• In technology, provided they are backed by
a member who is willing to sponsor
• Great management team, valuation,
technology .......
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24. Contact Information
Gerard Buckley, BBA, FICB, ICD.D
President and CEO
Jaguar Capital Inc.
(C) 416-884-9522
(W) 416-646-6789
g.buckley@jaguarcapital.ca
www.jaguarcapital.ca
Twitter: @jaguarcapital
Twitter: @gerardbuckley
Slideshare: Jaguar Capital
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