Angel Investing as an Asset Class

A N G E L I N V E S T I N G A S A N A S S E T C L A S S

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

AGENDA

WHO ARE TYPICAL ANGELS

WHO ARE MAPLE LEAF ANGELS

ANGEL INVESTING IN CANADA

ANGEL INVESTMENT

QUESTIONS & ANSWERS


MLA CONNECTS

Our mandate is to connect experienced accredited investors, and the brightest, most passionate entrepreneurs in an effective investment process.


ANGEL NETWORKS IN CANADA

• National Angel Capital Organization ( NACO) - Canada’s industry association representing Angel capital in Canada• 28 Angel Groups in Canada• They have collectively about 1500 investors• The majority have fewer than 50 members• 50% of groups set up since 2008

• Network of Angel Organizations Ontario (NAOO) – Umbrella organization for Ontario based groups• Currently Southern Ontario Angel Investment community has 13

groups


BOARD OF DIRECTORS

Board Chair

Board Vice Chair

Chair- Membership and Events Committee

Chair-Technology Committee

Board Member

Chair – Investment

Review Committee

• Wealthy individuals – “accredited investors”• “Been there, done that” entrepreneur• Active investors – invest to engage• Range of involvement - Lead investor: Chair of the board - Investor/advisor - Passive investor


WHO ARE THESE ANGEL INVESTORS?

• Return on Investment is the Metric (23%-27%)

• Staying involved (sense of usefulness)

• Give back to community

• Affection for entrepreneurs

Source: Angel Investing – an Overview. Angel Resource Institute


MOTIVATION OF ANGEL INVESTORS

VALLEY Source: Entrepreneurial Energy


ANGEL INVESTMENTS – HOW YOU HELP

• Companies are identified

• Investment Review Committee prescreens

• Coaching sessions for selected companies

• Investment meeting with all the Angels

• Due Diligence Team

• Standard Terms but individual amounts


HOW MLA INVESTING WORKS


INVESTMENT HISTORY

Sentient Magnetic

22 Investments$9.6 Million +

http://www.livehivesystems.com/index.html


WHAT ELSE? PATIENCE IS REQUIRED

• 1X typically takes 2.5 to 3 years• 10X is expected to take 4-5 years• 30X could take 8 years or more• Hint: Angels should not expect high portfolio yields

(IRR) after only three years of investing!


DETERMINING S IZE OF ANGEL CHEQUES

• Invest in at least 8-10 deals (lifetime)• Average of two investments per company (many one

or two, but some three or more)• Allocate 20 investments in total

• Determine total personal assets set aside for angel investing (3-10% of total assets)

• Divide total commitment by 20 investments• Write cheques averaging this size for angel deals


Clos ing Comments

• Angel Investing is a contact sport!• Direct correlation between the hours spent on Due

Diligence and IRR• You can expect to spend 40+ hours on Due Diligence

for each investment• Ongoing Support and Mentorship critical to the

success of ventures


Upcoming Events

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Angel Investing as an Asset Class

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