AngelsInvestingtheBigPicture

JEANHAMMONDLearnLaunchLaunchpad,GoldenSeeds&HubAngels

Nov1,2017

2

• Anentrepreneurneedscapital

• Angelinvestorswouldliketoinvestinsituationsthathavethepotentialofhighreturns

• Angelinvestorswouldliketosupportlocal/regionalentrepreneurs

• Thissessionwill:A. Positionangelinvestingincomparisontootherassetclasses

andreviewinvestingstrategies• Whatfundingworksforvarioustypesofcompanies

B. Reviewtheprocessbywhichangelsandentrepreneursgettogether,worktogether,andthenpartcompany

C. Discusslearningtobeanangel• LookintoNewEnglandecosystemforangelinvesting

Introduction

AngelInvestingProcess

AngelInvesting..Importantpartoftheprocess

Whatinvestorsneedtoknowaboutacompanytodecide

OverviewofFundingSources

Overview

Entrepreneurshipcomesinmanyforms

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SOCIALVENTURECOMPANY

NORMALGROWTHCOMPANY

HIGHGROWTHCOMPANY

EXTREMEHIGHGROWTHCOMPANY

• Goalistofulfillasocialneed

• Hasmissionorientation

• Teamneedstosupportmission

• Canhavenormalorhighgrowthprofile

• Exit…maybehardertofindfit

• Includesallservicebusinesses

• Exploitingalocalmarketneed

• Teamhas‘greatjobs’

• Growsrevenueindirectproportionto# employees,orhaslowprofits

• Exitwillbebasedonvalueofcashflow(maturebiz.)

• Companycangrowfast(on-line)orhasascalablesystem

• Teamoftenmotivatedbyexit

• $7-10Mrevenuein5y&marketsizeallowssignificantadditionalgrowth

• Capitalefficienttotalinvestment$2-4M

• ExitbyM&A

• Growthprofileultra-scalable

• Teamfocusisexit• Revenue$40M+

withlotsofroomforgrowth(5yr.)

• Basedon$20M+investment

• ExittargetedtoIPOorby‘large’M&Aevent

Entrepreneurshipcomesinmanyforms

5

SOCIALVENTURECOMPANY

NORMALGROWTHCOMPANY

HIGHGROWTHCOMPANY

EXTREMEHIGHGROWTHCOMPANY

• Friendsfamily,founders

• Charity$$• Crowdfunding

(Kickstarter)• ImpactAngels• ImpactVCs&

familyoffices• Crowdfunding

(portalstyle)• Royaltybaseddebt

• Friends,family,founders

• Debt,Bank,andother

• Growthdebt• (Future)Crowd

funding(portalstyle)

• Angels• AngelGroups• AngelGroup

Syndication• AngelList• Micro-capFunds• Crowdfunding

(portalstyle)• VentureDebt• Strategic

CorporateVCs

Earlyon• Accelerators• IndividualAngels• MicroCapVCs• SeedfromVC• VentureDebt

Laterstages• VentureFunds• StrategicVCs• AngelSyndication

Crossingchasms

$.5-1M*$1.5-2.5M*

$10+M

$1-2M

$5-7M

$.5-1M

Movingforward:

Salesprocessà single,multipletoregional

Personnelà everyonedoeseverything,specialisttodevelopmentofhumancapital

Processesà logicalguess/react,opportunistictodrive/leadmarket

Highgrowthcompaniesarenotprofitableenoughtoinvestindeepcustomersupport,increasingexpensivesales&marketingefforts,andnewproducts,

allatthesametime,sotheyneedtoscalethecompanywithotherpeoplesmoney

Source:ArcCapitalDevelopment

àEverycompany’sfinancingpathisunique*Annualrevenueorannualbookingswithincreasingrepeatablerevenuemodel

CapitalSources

Traditional VC

Micro VC

Equipment Financing

Angel GroupsAngels

Angel List, etc

Corporate / StrategicVenture

Customers

Jobs Bill PortalCrowdfunding

Vendors

FounderFriends & Family

Crowdfunding: etc.

Grants

Venture Debt

BankLoans

PersonalLoans

Private Equity

B’Plan Competition

Accelerators &Contests

7Entrepreneursusuallybuildapersonalpaththroughmanysources

AngelInvestmentProcess

InvestmentCycle

SourceDD&Invest

ManageFollow-OnRounds

Exit

DevelopStrategy

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• ABusinessAngelisanaccreditedinvestorwhoinvestshis/herowncapitalinprivatecompanies– usuallyearlystagecompanies

• Angelsinvestontheirown,incrowdfundingorinorganizedgroups

• Angelinvestmentscanbesmall($5k)orverylarge($1m)• Collectively,angelsareatremendoussourceofcapitalforprivatecompanies

• Alternativeearlystageinvestorsinclude:• Crowdfunding(Kickstarter)Incentivestyle• Crowdfunding(JobBillPortals)• Accelerators• Micro-capVCs• InstitutionalVCs

*Theseindividualsarenearlyalways“accreditedinvestors”asdefinedundertheSecuritiesActof1933

WhatisaBusinessAngel?

11

Whatdoyouknowboutangelinvesting?

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• However,thereisalackof“CleanData” fromangelreturns• TheAngelCapitalAssociationHaloReport,UNHVentureCenter• MostestimatessuggestVC-likereturns…theseapproach3Xforsuccessfulfunds,withIRRsabove20%

• Portfolioeffectissignificant• RecentanalysisofACAdatasuggeststhatatleast6-7investmentsarerequiredtocrossinto“expectedpositiveexits”,with12ormoreover5-7yearsshowinganevengreaterlikelihoodofsignificantreturns

• Participationinlaterroundscanhavealarge,positiveeffect

FundType 1Yr 3Yr 5Yr 10Yr 20YrEarly/Seed (20.6) 1.7 3.7 36 21.8

Mezzanine (26.9) 4.6 8.4 13.5 14.5

Later (6.8) 9.5 8.7 7.5 14.5

AllVenture (20.9) 4.2 6.4 15.5 17.0

NASDAQ (38.1) (10.3) (4.6) (3.2) 7.3

S&P500 (36.1) (10.0) (4.0) (3.0) 6.1

WhatMotivatesAngels:FinancialReturn

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• Manyangelsareinvolvedwithmentoring,coaching,trainingandadvisingentrepreneurs– orevenfindingtheirnextjob

• Somewithafocusontheirownportfolio• Sometohelpallentrepreneurs• Lotstohelpareaorganizationsintheeco-system• Ortofindafullorparttimeposition

• Manycompaniesprovideasmallnumberofoptionsforadvisors& boardmembers

• Whenaveragedwithyourinvestment…thesehaveabigeffectonreturnsatexit

• Learning,andstayinguptodateonnewtechnologiesandbusinessmodels• Creatingcompaniescreatesjobs,wealth,etc.• Goodforeconomy

• Networkingandsocializing

WhatElseMotivatesAngels

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• Investmentphilosophy• Similarrisktoleranceandreturngoals

• Stage,capitalrequirements,sizeofmarket,etc.• Similarbehaviornorms

• Lotsofcompletediligencewrittenupvs.littlediligence• Lotsof‘expert-leadinvesting’

• Structuredorunstructured• Club/Network,Fund,SidecarFund

• Paceofinvestments• Numberofmeetings(day/time/location),companiespersession,investmentsperyear

• Qualityofthepeopleandnetwork• Findpeoplewhoarefuntobearoundandworkwith

ThisAngelGroupSeemsRight

• Takesworktokeepthegroupgoingandgrowing

• Groupdecisionmakingcanfillintheknowledgegaps• Butfirstcomplainerhasalotofpower

• Findingfunsub-groupscanspeedthework• Whodoeswhat• Whoisfastandaccurate

• Canbealotoffun• Meetpeopletofocusonrealbusinessproblems

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AnAngelGroup:It’saGroup

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• FindanInterestingCompany• ScreentheCompany• CompanyPresentationtoMembersatGroupMeeting• DueDiligence• Potential“syndication”• NegotiateDealwithCompanyandMakeInvestment• Support&MonitortheInvestment(e.g.Corporate&AdvisoryBoards)• Exit(e.g.IPO,M&A,Dividends/RoyaltiesorShutdown)

• Slides18- 29arehere‘asnotes’• Therearelotsoflittlesteps

StepsintheAngelGroupInvestmentProcess

ApplicationProcess*MaineAngels=OnlineApplication

AdditionalFundingRequest

(Follow-On)

Reporting

Screening

Presentation

Diligence

Investment

ApplicationSubmitted

Declined

Declined

DeclinedApplication*Process***Maine*Angels*=*Online*application*

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• MembersofyourAngelGroup• OtherAngelGroupsorIndependentAngels• VentureCapitalFirms• ServiceProviders(e.g.lawyers,accountants,etc.)• IncubatorsandAccelerators(TechStars,LearnLaunch)• NetworkingatLocalTechnologyCentricEvents• OvertheTransom(e.g.directfromtheentrepreneur)

• Overtimeeveryoneinagroupneedstobeabletosaywhatfitsandwhatdoesn’t

WheredoAngelGroupsfindInterestingDeals?

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• Areweinterestedatall?– Aregeography,industry,stage,valuationallOK?

• Doesitmakesense?• Doesthetotalneedforcapitalmatchtheopportunity?• Cantheteamcarryitoff,withappropriatehelp?• Doesourgrouphaveanyapplicableindustryexperience?

• Arethereunansweredquestionsforfollow-upbeforeadecision?• Istherelikelytobegeneralinterestinthis,orisitveryspecialized?• Often,first30secondswithcompany’sdocumentswilltellallyouneedtoknow

• Manyangelgroupsincreasinglyfocusonscreeningtoimproveresults

Screening

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Presentation

• Ifitpassesscreening,companyisinvitedtopresenttowholegroup

• Presentationsareusually10-15minutesfollowedby10-15minuteQ&A

• Presentationshouldcoverthefollowingitems:• Problemtobesolved,companysolution,marketopportunity,go-to-marketplans

• Managementteam,competition,currentstatus,financials,fundingneeds&likelydeal

• Ifthereisinterestfrom“enough”members,weproceedtoduediligence

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DueDiligence*

• Thepointofduediligenceistogivethedealanappropriate(due)levelofscrutinysothatthegroupasawholecanmakeintelligentinvestmentdecisions.Asapartoftheprocess,itdevelopsaninterestedcadreofpotentialinvestors.

• Formtheteamwithatleastoneindustryknowledgeablemember

• Assessthecompanysolessinvolvedmembersandsyndicationmemberscandecide

• The‘work’• Wewilllookatthislater

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• Assumingthekeyquestionsareansweredsatisfactorilyfinishdiligenceincluding:

• Checkreferencesonteam• Checkmarketonproduct– usersorprospectiveusers

• StartDeal:• Startnegotiationofvaluationandgeneraldealterms• Developtermsheet• Thinkoutnextroundsandlocate“best” boardmember

• Reportbacktogroupandcheckonitsinterest;makeaneducatedguessattotal$interest

FinishDiligenceandOutlineDeal

CompanyAssessment

DiligenceFactors

LeadershipAssessmentTechnology,IP&ProductRoadmapRegulatoryStrategyCustomerNeed&GTMPlanUniqueness&CompetitionMarketSize&MarketOpportunityFinancialProjections&FundingStrategyExitStrategy

1. Risk/Returnassessment2. Matchtothehumancapitalandcapitalavailabletothisdeal

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SyndicatetheDeal

• Oftenasinglegroupcannotorwillnotfundacompleteroundsosyndicationisrequiredtogetthenecessaryfunding

• NewEnglandgroupsworkthroughthe“AngelTreaty”,whichgreasesthesyndicationskids

• Interestsanddiligencerequirementsdifferfromgrouptogroup,somorediligencemaystillbeaskedforinsyndication

• Thereislittle“shopping”ofdealsintheNEangelecosystem• NointerestingroupAneitherimpliesthatgroupBwillnotbeinterested,northatmembersofgroupAwon’tinvestifgroupBendorsesadeal

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• Basedonstandardtermsfoundinmanyearlystageventuredeals

• Providesahighleveloverviewofkeydealterms• TypeofSecurity:PreferredStock,ConvertibleNote,SAFEetc.• FinancialTerms:Valuation,Dividends,LiquidationPreferences• CorporateOversight:BoardofDirectors,Voting&InformationRights

• Writtenbyeithertheentrepreneur’sortheinvestor’sattorney• Oftensignedbytheentrepreneurandarepresentativeofinvestorgroup

• Notusuallybindingoneitherside,althoughtheentrepreneurcan’tuseittolookforabetterdealelsewhere

TermSheets*- SummarizingtheDeal

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LegalDocumentation

• Onceatermsheetissignedandduediligenceiscomplete,workbeginsonpreparingcompletelegaldocumentation

• Documentationvariesbasedontypeofsecurity• ConvertibleNotes(shortandsimple),PreferredStock(lotsofpaper)• Includes:InvestorRights,Voting,Co-Sale&StockPurchaseAgreements

• Documentsarepreparedandreviewedbyattorneysonbothsides

• Typically,eachinvestorsignsappropriatedocuments• Feesforinvestors’ counselarepaidbythecompanyoutoftheproceedsoftheinvestment

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ClosingtheDeal

• Finallegaldocumentationissentouttoallinterestedinvestors• Usuallywithveryexplicitinstructionsonwhattosignandwheretosendsigneddocumentsandinvestedfunds

• SignaturePagesaresignedandmailedalongwithacheck• Documentsaresenteithertocompanyortoleadinvestor• Fundsaresenteitherbycheckorwiretransfer• Insomecases,fundsanddocumentsareheldinescrowuntilfullinvestmentisreceived

• Insomecases,arollingcloseisusedtodistributefundstoacompanywhilenewinvestorsarebroughtintothedeal

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MonitoringtheInvestment- Individual

• Asanindividualinvestor• Readthequarterlyorannualreports• Ifyoudon’tunderstandsomething,ask– therearenodumbquestions

• Ifyouhaveasuggestion,emailorcalltheCEOoryourinvestorrepresentative

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MonitoringtheInvestment– GroupRep

• Asthegroup’s“representative*”• You’llprobablysitontheBoardofDirectors

• Takethisseriously.Youhavefiduciaryobligationstomanypeople--toallstockholders,employees,vendors,customers,etc.-- notjust“your” investors

• Thiscan sometimesleadtolonganddifficult unpaidhours,particularlyifthedealhastroubles. Youmustbepreparedtoputintheeffortunderallcircumstances

• ReadtheBoardmaterialsandattendallmeetings• BearesourcefortheCEO.BeinginchargecanbelonelyandtheBoardmemberscanhelp

• Consultwithotherinvestorsasneeded• Takeanappropriatefee(sometimeastockoption)foryourservice*eachinvestorhasdirectrelationshipwithcompany

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• Goodexits• LikelythelargestdealtheCEOhaseverdone

• Offerhelpifappropriate• Ifit’snotappropriate,stayoutoftheway;it’sastressfultime

• Iftheamountsinvolvedarelarge,itmightbeworthwhiletohireanoutsidertocheckthenumbers orbeanexitadvisor

• Dealsarecomplex,mistakeshappen (severalinvestorsmightbandtogethertopayforthis).Thisisparticularlyapplicableifmanylayersofinvestmentcameafteryours

• Badexits• Grinandbearit• Ifyouinvestedinequity(notconvertibledebt)makesureyourtaxadvisorlooksatSection1244

• IPO,M&A,Dividends/RoyaltiesorShutdown

Exits:Good&Bad

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DueDiligence:Criticalto NewEngland’sAngelEcosystem

• Innovationinourregionisunique&dynamic

• Angelinvestingisgrowinginquantityandquality

• Angelgroupsarebecomingmoresophisticated

• Syndicationamonggroupsisgrowing,andisacriticalcomponentoftheangelindustry’sdevelopment

• Syndicationreducestheamountoftimeandeffortinvolvedinraisingcapitalforaninvestmentopportunity-- angeltreaty

• Successfulinvesting,withingroupsandsyndications,hasduediligencesharingatitscore

AngelInvestingImportantPartofCompanyCreation

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àCompaniesgetstarted:lookformarkettraction

àAnyindustrycanbedisrupted!Notalldisruptivecompaniescangrowandexit

àCosttostartcompaniesatalltimeslow(co-working,cloud,developmentsuites,etc.)

àAngelfundingistopoffunnelinvariousstyles

àButthesearchforSeriesAlevelfundingcontinuestobehard

àCapitalflighttolatestageVC

àPEbothgrowthandbuy-outareatalltimehigh

àIPOsathistoriclows

àAccelerators

àMovingtoextendsourcesofseed&seed+funding…usuallyangels

TRENDS

MARKETRESPONSE

Trends:MorePrivateFunding

EverySectorcanhaveaSwarmofStartups

DifferentSourcesofCapitalCa

shFlow

PassiveInvestors ActiveInvestors

Concept

WorkingModel

EngineeringPrototype

ProductionPrototype

ProductIntroduction

Sales

SweatEquity&Personal

Savings

SweatCapital

EarlyStageVentureCapital

VC

Friends&Family(<$100K)

State/GovernmentAgencies($100K-$1M)

AngelInvestors($25K-$1.5M)

AngelInvestors($25K-$1.5M)

VentureCapital($500K-$5M+)

Banks($250K+)

Different sources of capital

Engineering Prototype Production

Prototype

Product Introduction

Cash

Flo

w

Concept

Working Model

Sales

Sweat equity and personal savings

Seed capital

Early stage

venture capital

VC

Passive Investors Active Investors

Friends & Family<$100K

State/Gov�t Agencies($100K-$1M)

Banks($250K+)

Angel Investors($25K-$1.5M)

Venture Capital($500K-$5M+)

AcceleratorspriortoSeriesA

36Source:Pitchbook

One-thirdofU.S.startupsthatraisedaSeriesAin‘15wentthroughanaccelerator

Alternativesourcesofcapital

37

Alltheabovecanbeusedbyearly-stagehigh-growthcompaniesandby“normalgrowth”companies

• Pre-payments,etc.fromcustomers,NREtojointlybuildproduct

• Revenuehistoryopensaccesstomoretypesofdebt

Revenue– bestofall(Bootstrapping)

• Partnerforco-marketing,findersfee,etc.• Delayedpaymentforrawmaterialsfromsuppliers,etc.

• Canleadtoothercollaborations

Vendors&Partners

Debt&VentureDebt

• SBIR(SmallBusinessInnovationResearch)grantsdepartment-specificfunding– usually$800Kin2phases(slow)

• $2.5BsetasidefromFederalagenciessince1982~$2Billion+• StimulatetechnicalinnovationtomeetfederalR&Dneeds• PrincipalInvestigator(PI)shouldbeemployedbysmallbusiness

Grants

OtherFoundation&GovernmentFunding

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ImpactInvesting

• Allinvestmentshaveimpact

• Impactinvestmentsareinvestmentsmadeintocompanies,organizations withtheintentiontogeneratesocialandimpactalongsideafinancialreturn

• Returnscanreflectdifficultyofthemarketsserved

• Thegrowingimpactinvestmentmarketprovidescapitaltoaddresstheworld’smostpressingchallengesinsectorssuchassustainableagriculture,renewableenergy,conservation,microfinance,andaffordableandaccessiblebasicservicesincludinghousing,healthcare,andeducation

• Knowledgeofkeyfundersneeded

• Helpthecompaniescollectmetrics

BusinessAngels Venture Capital

Who • Private individuals• Investingtheirownmoney

• Professionalinvestors• Investingmoneyfrom

others

How

• Invest2-10% ofpersonalwealth

• $10-100Kperyeareach• $50K-1Mperroundfor

minorityshareofacompany

• Invest $5-20Mperinvestment

• Closedperiodof8-10years• Moneyraisedmustmake

moremoney

Why• Makemoney• Mentor• Socialize• Entrepreneurial track

• Career• Makemoney• Raiseanewfund

BusinessAngelsvsVentureCapital

EquityCapital:GoalisIncreasingValue

40

Employees Founders

Employees Founders Angels

Employees Founders VCs Angels

àIt’stheareaofthepieslicenotthe%

àAllpartiesagree…focusonbuildingvalue

Remember!

EQUITYREQUIRESANEXIT

AngelsandVC’s

41

48,00071,110

3,237

4,561

-

20,000

40,000

60,000

80,000

100,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

#dealsinvested,annually

Angels VentureCapital

22.5 23.1 25.6 26.0 19.2 17.6 20.1 22.5 22.9 24.8 24.1 24.6

22.9 23.3 23.9 32.130.4

20.4 23.5 29.9 27.7 30.350.2 60.1

-

20.0

40.0

60.0

80.0

100.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$Binvested,annually

Angels VentureCapital

Sources:CenterforVentureResearchattheUniversityofNewHampshire;MoneyTreeReportbyPwC;Angelsdataoncompanies,VCsondeals

Angelsseedinvestment:Criticalattopofthefunnel

à Angelinvestingplaysthekey roleatthetopofthefundingpyramidà Complementedbyabout$60BVCdollars;à Estimatesarehardbutmaybe1/3togrowthcompaniesand2/3

Angelsarehighnet-worthindividualswhoinvestownmoneyinstart-upcompaniesinexchangeforanequityshareofthebusinesses

à 20-40%ofangeldealsgoontomoreequityfunding(SeriesA)towardexitàMostarefollow-onangel$andsomeVC;headingtosmallM&Aexità Somemovetolifestylecompaniesandalotfail

AngelInvesting

Angels

AngelDeals

àDoesthisfit?

àWillitfitnextyear?

à…Howtoproceed?

Okay,whataboutme?

HighRisk

• 2-10%ofNetAssets(minusprimaryresidence)• Figureoutyourbudget• Keepfundsforlaterroundsandupcomingcompanies

Application*Process***Maine*Angels*=*Online*application*

Whatothertrainingis‘needed’

CoreSubject /Concept Advanced Version

Screening&CommunityRoles ManagementofAngelGroupProcess

DueDiligence* DealLead, DiligenceProcess&SyndicationManagement

DealTerms* DealStructure, Valuations&CapTables,LegalTerms

Coaching, Advising,BoardMember

BoardMemberHandbook

Portfolio Review Portfolio& ExitManagement

• Everyoneshouldunderstandthebasics• Eachinvestingunitneedscovermostoftheseissues• Eachpersoncan/shouldplayarole

Whatinvestorsneedtoknowaboutacompanytodecide

AngelInvesting

Whattypeofcompanyisit?

Typeofcompany

à Everycompany’sfinancingpathisuniqueà Fundingcomesindistinctflavors;allfinancialpartnersarespecialists

47

à Ifyousellsoftwareontheinternetthen,

à Youfindeyeballsandconverttosales

à LicensenewbatterytechnologytoexistingplayersVS

à BuildabatterycompanywithoutsourcemanufacturingOR

à Buildamanufacturer

Natureofbusiness Howyoubringtheproducttomarket

Costofscalingandfundingrequirements

Isthiscompanyreadyforfunding?

48

References&diligencematerials

Executivesummary&investorpitch

Stageofdevelopment

Clearcapitalrequirements

Teaminplaceoridentified Indepthfinancials

Conceptprobablyfriends& family,maybeanindividualangel

?

Prototypesomeangelgroupinterest

Firstrevenuelotsofangelgroup

interest

5P’sofinvesting

49

PEOPLE

PLAN

PROMOTION

PRODUCT

PRODUCT

bothdifferentiatedtechnologyorserviceandthemarketneedandsize

marketentryplanandcostofmarketing

abusinessmodelthathasmarginsanddistributionscoststhatareprofitable

ateamtomeettheneedsofthebusiness

goodideaofthestepsneededtocreatearepeatablebusinessmodel

àWhatpotentialcustomersaresaying

àHowtorunaseriesofmarketentrytests

àHowtheteammatchestheneedsofthebusiness

àHowthiswillscaleagainstarepeatablebusinessmodel

KEYCONCEPTS

TotalMarketSize:IncludingAdjacentmarkets

Coremarket

3rdMarket

MaybeMarket

2ndMarket

à Coremarketiscompelling

à Butthereareadjacentmarkets toexplore

Alookahead…

CompanyRiskAssessment

DiligenceFactors

LeadershipAssessmentTechnology,IP&ProductRoadmapRegulatoryStrategyCustomerNeed&GTMPlanUniqueness&CompetitionMarketSize&MarketOpportunityFinancialProjections&FundingStrategyExitStrategy

1. Risk/Returnassessment2. Matchtothehumancapitalandcapitalavailabletothisdeal

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1. Innovationdriveseconomicgrowthandraiseswages.2. InnovationimprovesU.S.lifeexpectancy.3. Innovationmakestechnologyaffordable.4. Neworganizationalstructuresleadtorisingstandardsofliving.5. Newhouseholdtechnologiesallowmoretimeforfamilyandleisure.6. ThepaceofAmericaninnovationhasslowedduringthepastfourdecades.7. Innovationhasfailedtoincreasewagesforasubstantialnumberof

Americans.8. Significantbarrierstoinnovationexistinthegovernmentandtheprivate

sector.9. Federalsupportforresearch&developmenthasdeclinedinrecentyears.10. RelativelyfewU.S.collegestudentsstudyfieldscriticaltoinnovation.11. AmericanwomenarelesslikelytocontinueinSTEMfieldsthanAmerican

men.12. U.S.policymakesitdifficultforinternationalstudentstostayandwork.

12InnovationFacts

53

• Innovationinourregionisunique&dynamic• Angelinvestingakeypartofthefundingpath

NewEngland’sAngelAssociation

HighRisk

• 2-10%ofNetAssets(minusprimaryresidence)• Figureoutyourbudget• Keepfundsforlaterroundsandupcomingcompanies

Application*Process***Maine*Angels*=*Online*application*

OKwhataboutme?

àDoesthisfit?

àWillitfitnextyear?

à…..Howtoproceed?

Q&A