Gary Kravetz gary sbkravetzcom Director Central Coast Network Tech Coast Angels Angel investing is not new What is an angel investor Anyone who makes a private investment in a company typically a startup ID: 322336
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Slide1
Angel Investing
Gary Kravetz
gary
@sbkravetz.com
Director, Central Coast Network
Tech Coast AngelsSlide2
Angel investing is not newSlide3
What is an angel investor?
Anyone who makes a private investment in a company, typically a start-up
Typically, but not necessarily, accredited:
$1 million in investable assets (not including value of primary residence) OR
$200K in income ($300K joint)
Often are entrepreneurs themselves
Angel groups provide a forum for evaluating investments and sharing risk
Friends, family & founders can be non accredited
Crowd sourced investor are new category of non accredited investors. Slide4
How many potential accredited angel investors are there?
Source: http://
money.cnn.com/2011/05/05/pf/millionaire_rise/index.htm,
Angel Capital Association, Cap Gemini/Merrill Lynch World Wealth Report 2001
Only ~7,000 members of angel groups (2009)Slide5
EXAMPLE: Tech Coast Angels
Largest angel investing group
Invests in Southern California companies (mostly)
Group negotiation, individual investment
12-20 deals per year
TCA Invests in more than tech
Hardware/Software
Life ScienceDigital Media
Consumer Products/ServicesCleanTech/IndustrialFinancial ServicesOther local angel networks include Maverick Angels. Pasadena Angels & Golden Seeds
5 TCA NetworksSlide6
Typical Angel Investing ProcessSlide7
If you first meet an Angel at your screening, then you waited too long.
Entrepreneurs & Small Businesses need a network to thrive.
Get mentorship
from
local angel
investors
Local networking groups
805startups: http://www.meetup.com/805-StartupsSBStartups: http://www.meetup.com/startupsb
TCA-sponsored eventsQuick Pitch (San Diego) & Fast Pitch (LA & OC)Meetup Group (OC): http://www.meetup.com/techcoastangelsMentoring opportunitiesSmall Business Development Center (SBDC SCORE www.sbscore.com)Slide8
A good PP pitch covers all of these…
The problem you solve
Market
size
Your c
ompany
&
productsBusiness model (how you make money & grow)Team ( employees and advisors)Competition (and why you win)
Barriers to entryFinancial projections: sales, gross margins & EBITDA, to 5 yearsAmount you want to raise & use of fundsValuation
Exit price,
similiar
exits & potential acquirers Slide9
Other initiatives from angels
Syndication
Cooperation among angel groups
Angel Capital Fund for Entrepreneurs (ACE) Fund
Invests where only
whereTCA
members invest
Don’t have to be a TCA member to investSeed TrackFor early stage companies with a missing pieceInvestors commit up to $100K on the spot30 day close.
Will come back for a larger TCA investment if successfulSlide10
Other Investment Funding Sources
Friends
& family can invest if rules are followed.
Angel networks
looking for $100M+
sales potential
Venture capitalist looking for $1B+ sales potential.Equity crowd (non-accredited) funding is new
Strategic partners (suppliers, etc.)might investSlide11
TCA deals
Funded in 2012 (18)
Active Life Scientific, Inc.
– (SB Panesis, $100K)
Cadence Biomedical, Inc. - ($75k, Berkus)
Cashie Commerce - ($650k, Moss)
Deal Current - ($100k, Lapin)
Emerald Logic - ($279k, Harbison)
Gemmus Pharma, Inc. - ($214k, Glezer)Gridtest Systems - ($105k, Palter)Health In Reach, Inc - ($70k, Sangster)Lucirix Inc. - SaaS licensing model with annual software contracts to hospitals (LA, Green, $110k)mSIGNIA, Inc. - ($395k, Kleist)Nanoogo - ($125k, Chan)
PageWoo - ($100k, Lapin)
PetPlay - ($20k, Jordan)
Sign
Now
- ($200k,
Berkus
)
Social Annex, Inc. - SaaS
based Platform
for Online Retailers to monetize social media
(Lapin
, $750k)
TranscribeMe - ($250k, Babajov)
trueRSVP Inc (dba Planana) - ($80k, Sangster)
ViroPan, Inc.
Wasatch Microfluidics, LLC - ($275k,
Israel
)
Continental
Wind Power - Mid-sized wind turbine
(SB,
Pikover, $1.25M)
Agilenano - Nanotechnology Based Energy Absorbing Material (SD, $200K)
Phone Halo - Track your
belongings (SB
,
Panesis
, $90K)
2008- Make it Work (
SB )