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