PRESENTER CREDS
Elizabeth Crowell
@egcrowell
www.insideanangel.wordpress.com
•
Earned my stripes during Web 1.0
•
Owned and operated a profitable, cash-flow positive businesses for 10 years
•
Pipeline Fellow Inaugural class – 2011
•
Market Lead for Astia Angels NYC
•
CEO of Bpeace
BEFORE WE JUMP IN: DEFINE SUCCESS
Lifestyle
Invent
100 jobs
Comfortable
size and
scale
New
Market
Inc.’s List
IPO
ABBREVIATED OVERVIEW OF EQUITY RAISING
Seed
• Angel
• $100K$1m
Early
Stage
• VC
• $3m+
• Private
Equity
Growth
• $10M+
WHO ARE ANGEL INVESTORS?
• Accredited investors = high net worth individuals
• Successful business people
• Sophisticated but not professional – distinct from VCs
• Cash – Contacts – Connections
• No two angels are alike
ANGELS VS NETWORKS
Angel
Network
Individual
Group
Due Diligence Solo
Due Diligence Shared
Can move quickly
Can move slower; may have staff
and/or process to help deal
along
Overall: can be nimble and
decisive
Overall: increased scope of
contacts & amount secured but
building consensus can take
longer
FUNDING FUNNEL - ANGEL GROUPS
Prescreening
• 1 in 4
Screen
•1 in 3
Due Diligence
•1 in 3
Investment
•1 in 2
Overall, 1 to 4 out of 100
companies that apply
receive funding
DEAL TERMS
Angel Groups – Investment by Type
Priced round
Convertible debt
3%
14%
83%
Source: ACA-SVB Confidence Survey – March, 2010
Other
POST-INVESTMENT
• Courting to “marriage”
• Set communication expectations AND then
meet them
• Balance between substantive and timely vs
onerous
RESOURCES
Associations: Angel Capital Association; Angel Resource Institute
Networks: NYAngels, Golden Seeds, Investors Circle, Astia, Launchpad, 37 Angels, Pipeline, Georgetown Angels
Twitter angels/VCs to follow: @bradfeld; @gothamgal (Joanne Wilson); @thehatchery
Books: What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funded for BillionDollar Idea by Brian Cohen & John Kador
The Big Enough Company: Creating a Business that Works for You by Adelaide Lancaster & Amy Abrams
Links:
http://femaleinvestors.plumalley.co - list of female angels and VCs
http://ownyourventure.com/equitySim.html - online simulator for equity dilution
https://angel.co - crowd source funding from accredited investors
https://fundersclub.com - crowd source funding from accredited investors
http://www.yourfutureinbusiness.org/partnerships.cfm - from the Thypin Oltchick Institue for Women
Entrepreneurs
Start-up Law Firms: Goodwin Procter; Nixon Peabody; Gunderson Dettner; Dentons; Lowenstein
THANK YOU
Elizabeth Crowell
Market Lead, Astia Angels NYC
@egcrowell
MEET SOME ANGELS
• Network is solid and ready to help you secure warm leads
• Business plan or investor deck ready
• Financials are in order
• Be passionate and back up your passion with datapoints
• Do your homework
• Prepare a term sheet or offering OR develop with a lead investor
• ATTEND EVENTS & CONTINUE TO GROW YOUR NETWORK
OUTSIDE INVESTMENT EVALUATION
You & Your Team
• Scrappy
• Coachable
• Skin in the game
You
Stage
 Idea
 Product
 Company
 Business
Market
 B-B: high 100’s
 B-C: 100K+
Stage
Market
OVERALL TRENDS
• Upwards of $60billion invested annually between angels and VCs
• Friends & Family invested between $50-75 billion every year
• Rise in number of businesses launched + increase in angel
investing = Series A crunch
• It’s cheaper than ever to start a business – $10K
BEFORE YOU GO ASKING ANGELS….START-UP
CAPITAL + ADVISORS
Start-up Capital
• Bootstrap
• Friends & family
• Grants & Business Plan competitions – equity- free!
• Non-profit training + micro lending
Network of Advisors
•
Professional services
•
Industry-related
•
Personal