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Slide 26
• Due diligence should take 60-90 days but sometimes only have limited time available
Slide 28
• Proteocyte diagnostics doesn't need to get approved but needs to get accepted by the profession
which can take a long time
• High uncertainty of outcome
Slide 29
• Not just about active investing, should also actively monitor
Slide 30
• Up round -> instead of $10 per share, you pay more later on
• As an angel investor, don't hold onto company; not in it for dividends
o Exit
Slide 31
• One angel must take more active role
• Need to sit on board and take part in management discussions
• Should have a summary slide deck from board meetings to all investors
o Not all companies (1/3 do)
• Should always have someone from each round of financing sitting on the board
Slide 32
• Typically not all generate a return
•
•
Cap table shows …
PITCHBOOK
Slide 37
• FedDev is government team that provides money to start up a company
Slide 38
• Often start with convertible debt financing
Slide 39
1.1^2 = 1.21* 1000000
= 1210000
$8.50 per share
=1210000 / 8.5
= 8.5 142352.9 shares
$10 per share
142352.9* 10
= 1423529 value of shares
Conv Debt Now = 1000000
Conv Debt 2 years = 1.21mill
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0
1
2
-1000000 0
1423529
Use iRR function => 19%
*** CALCULATIONS ON SLIDES 39/ 40 - quiz question
Slide 40
• Valuations cap => makes convertibles more attractive
• Shares worth more when value cap is lower than the value of the stock
Summary of last classes
=> Drivers of success in Angel investing
• Access to high quality to deal flow is important
• How to get it : networking-> build reputation -> keep reaching out and doing good things
o Support
• Expertise: should understand company, their markets
• Understand founders, products
• Due diligence !
• Mentoring & support startup
o On the board, watching, nurturing
• Clear path in financing
Chalk.com => pitched that revenues are there & growing
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