Angel Investing PowerPoint Presentation

Angel Investing PowerPoint Presentation

2017-07-12 88K 88 0 0

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Trends and Highlights. A Few Facts. $20B invested in the U.S. annually. 60,000 companies – 80% seed. 258,000 . active. angel investors. Average investment size - $10K - $100K. Not neat and tidy. Hard work but fun. ID: 569325

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Slide1

Angel Investing

Trends and Highlights

Slide2

A Few Facts

$20B invested in the U.S. annually

60,000 companies – 80% seed

258,000

active

angel investors

Average investment size - $10K - $100K

Not neat and tidy

Hard work but fun

Slide3

Why Invest Early – High Return Potential

$1000 in FB in 2005 = $624,500 today (62,450%)

$1000 in

Airbnb

in 2009 = $589,667 today (58,967%)

$1000 in

Dropbox

in 2008 = $391,500 today (39,150%)

Peter

Thiel

invested $500K in FB for 10.2% in 2004. He sold 16.8M shares at IPO for $638M and has another $396M left.

Slide4

But Remember

Many die

Some survive (1 – 5x)

A few thrive (20x+)

Slide5

Startup Investor Ecosystem

Angels

&

Incubators($0-10M)

“Micro-VC” Funds ($10-100M)

“Big” VC Funds ($100-500M)

“Mega” VC Funds (>$500M)

Starfish

Southern Cross

General Catalyst

Pollenizer

Startmate

PushStart

Tank Stream

Carnegie

Blackbird

Sequoia

Accel

GBS

Netus

Innovation Bay

Incubation

SeedSeries ASeries BSeries C+

Bootstrap,

KickStarter

,

Crowdfunding

Slide6

Highlights Q1 2013 – Halo Report

Median Angel Round Size Up To $700K

Pre-Money Valuations Average $2.5M

81% of deals occur in angel groups home state

Angel Groups Syndicate 3 Out of Every 4 Deals

Slide7

Median And Mean Round Size

Slide8

Co-Investing Median Round Size

Slide9

Q2’13 Sectors

Internet – 37.2%

Healthcare – 19.9%

Mobile – 13.6%

Software – 4.2%

Slide10

Sectors

Slide11

Round Size By Sector

Slide12

U.S. Valuations

First Quartile - $1.2M

Median - $2.5M

Third Quartile - $3.0M

Top Quartile - $5.5

Slide13

Valuations – Halo Report

Slide14

Co-Invest Percentages

Slide15

Strategies to Enhance Performance 

Pick a Goal

– Is this for fun, profit or philanthropy

?

Invest Where You Have Industry Expertise –

Analysis indicated that expertise has a material impact on angel investors’ returns. Returns were nearly double for investments in ventures where the investor had related industry

expertise and contacts.

Increase Due Diligence Time

Investors experienced better returns in the deals where they exercised more due diligence. Sixty-five percent of the exits with below-average time spent on due diligence reported a return that was less than their original investment. Losses occurred in only 45 percent of the deals where investors did above-average due diligence

.

Syndicate or Co-Invest With Experts

(pattern recognition)

Build a Portfolio (10 or more)

– Look at a lot of deals before you invest

Participation

or Adding Value

After an angel makes an investment, his or her participation in the venture – through mentoring, coaching, and financial monitoring – is significantly related to that venture’s returns, according to the study

.

Be Careful With Follow-On Investing

Deals where the angel investor made follow-on investments generated significantly lower returns. In ventures where follow-on investments were made, nearly 70 percent of the exits occurred at a loss.

http

://www.kauffman.org/research-and-policy/returns-of-angels-investors

-in

groups.aspx#sthash.TObynS6L.dpuf

Slide16

Important Considerations

Team, expertise, and market are most

important

Chemistry must be good

Deep understanding of the problem (authentic connection) + passion is key

Deal structure and valuations are important but secondary

Slide17

Places To Learn More

http://www.paulgraham.com/angelinvesting.html

(Paul Graham)

https://angel.co

(Angel List)

http://www.angelresourceinstitute.org

(Angel Association US)

http://www.fabricegrinda.com/entrepreneurship/9-business-selection-criteria/

http://www.svb.com/halo-report/

(Halo Report)

http://aaai.net.au

(Australian Association of Angel Investors)

http://

www.tommckaskill.com/ebooks/angels.html

(

Tom

McKaskill’s

book

An Introduction to Angel Investing)

Innovation Bay, Sydney Angels, Melbourne Angels, SA Angels, etc

Slide18


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