Angel Investments
Catch
Participation Rights
Anti-dilution
Board and Info rights
can't hide from
sits on the board
Liquidation Preference
3 to 5 years
guarantee exit
plus 40% return
Preferred Stock
pay
even if not profitable
Business Plan Forms
Full Business Plan
validation scorecard
due diligence
Executive Summary
balanced presentation
serious investors
whole plan
focus
business opportunity
attract
interest
Elevator Pitch
2 mins
verbal
summary
closing
attract interest
product opportunity
Acquisition
Disadvantages
new owner
may do worse
may not revive
losing business
inherits
liabilities
problems
Advantages
business
existing
clients
employees
know
estalished
Opportunity
Angels
monopoly of market
ready for customers
unique products
large niche market
high GMs
30M
40%
annual returns
5 years
participation
decisions
Shareholder
Advisor
Director
investing an amount worth their while
clear exit
stageable risks
don't invest for too long
entpreneur
can deliver
large margins
not risky
pool of money
different investors
knoweledgeable
industry
100M
Angel
Groups
Funding gap
no
VCs
angels
Early/Later
Venture Funds
Start-up
Individual angels
Pre-seed
friends
family
founders
creating
new class
investors
11 to 50
ave # per project
Intro
prevalent
US
90%
outside equity
50k of 500k
start-ups
