CONVINCING ANGELS
ABOUT ANGES QUÉBEC
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A NETWORK OF ANGEL INVESTORS
Anges Québec is a network of 155+ business
people – mostly entrepreneurs – who have been
successful. They invest their money, expertise
and network in innovative companies throughout
Quebec.
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� Creation: 2008
� Invests in Quebec companies
� 3 geographical clusters – Quebec City, Montreal and
Sherbrooke
� 50 investments and re-investments (25 in last year)
� 80% of companies financed didn’t have significant
revenue at time of investment
� 0% were profitable
PROFILE
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� Expected return: 5 to 10 X in 4 to 7 years.
� Average pre-money value = $3M
- Minimum $1M - Maximum $6M
� Investments range from $200K to $1.2M
� Average investment round of $450 000 / 10
angels
� + Anges Québec Capital Fund (up to $500K
extra)
PROFILE
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APPROACHING ANGELS
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IDEALLY, THEY’RE ALREADY IN YOUR NETWORK
� You know them OR you know people who know them
� Start developing the relationship even if you don’t need
funding right away.
- Industry expertise
- Mentors, advisors
ANGES QUÉBEC
� Referral by a member – especially one who is ready to invest
� Set out process for funding application and investment
WHERE TO FIND ANGELS
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ANGES QUÉBEC PROCESS
7. FUNDING AND FOLLOW-UP
6. DUE DILIGENCE
5. PRE-DILIGENCE AND TERM SHEET
4. DETAILED PRESENTATION TO INTERESTED ANGELS
3. PITCH BEFORE ALL ANGELS
2. SELECTION COMMITTEE
1. SUBMISSION VIA WEBSITE
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CONVINCING ANGELS
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� Include enough details so we can get a good
idea of your business and the investment
opportunity.
– Normally a 30 to 40 page PowerPoint or a 15 to 20
page Word document is sufficient.
- Investor deck and/or business plan
- Financial statements (if applicable) and projections
DOCUMENTATION NEEDED
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� Innovation, no matter the industry
� A product or service that stands out and meets a real
need / solves a real problem.
� A large market with high-growth potential
� A simple and realistic game plan
� A reasonable deal (pre-money valuation)
� Leadership that is passionate, organized, realistic, that
listens to feedback and knows how to make decisions.
WHAT DO ANGELS WANT TO SEE?
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1. Document your business plan
2. Strong, well-rounded team and respected advisors
3. Industry expertise – be visible
4. Build an MVP and gain learnings
5. Sales / customers / users OR letters of intent
6. Progress and momentum
7. Intellectual property
8. Strategic partnerships
9. Personal investment
EARLY TRACTION
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PLANNING AN EXIT STRATEGY
EXIT OPTION
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NEW INVESTMENT IN THE COMPANY
MANAGEMENT BUYOUT
IPO
MERGER & ACQUISITION
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� Setting up your business for a future sale.
� Multi-disciplinary diagnostic to determine areas of
improvement that can impact company valuation.
BUSINESS STAGING
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ANALYZE THE COMPANY FROM DIFFERENT ANGLES:
BASED ON THIS ANALYSIS:
• Financial
• Operational
• Strategic orientation and market positioning
• Analysis of standard financial ratios in industry
• Identify key factors specific to your company and industry.
• Prepare an action plan to strengthen these factors to maximize company value.
INCREASE VALUE AND DECREASE RISK
SALES
MANAGEMENT
FINANCES
� Diversity of clientele
� Strong customer relationships
� Innovative products
� High-growth industry
� Management team
� Sharing of responsibilities
� Lack of diversity of clientele
� Client churn rate
� Products / services at end of life cycles
� Low-growth industry
� One-man show
� Outdated or non-functional management structure
� Not profitable or low-growth
� Financial ratios not in keeping with industry standards
� Profits and growth
� Financial ratios in keeping with industry standards
HIGH VALUE LOW VALUE
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