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Agenda

Brief Overview on Angel Investing


Keynote Talk by Ron Foxcroft
Round Table Discussion
Q&A
Closing Remarks
Reception
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An Angel Network in Niagara benefits all stakeholders including
entrepreneurs, Angel Investors, employees, suppliers and customers as
well as the Region and its institutions…. A flywheel effect takes hold.

Attract High Quality


Create Angel Network Start Ups & SME’s

Attract More
Angel Investors

More High Quality More Investments


Start Ups & SME’s Opportunities

Higher Economic
Activity
Objectives:
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Angel investing is growing rapidly in North America.
Primary source of capital for start up and small to medium
enterprises (SME’s), the engines of job growth.

Angels are enjoying superior ROI on investments


executed through Angel Networks:
Average return of 27% and exit from investments in 3 to 7
years.

An Angel Network needs to be established in Niagara


ANGELS:
Invest their own money (not money managers)

Generally invest in local early stage businesses

Are often “exited” entrepreneurs, retired business


persons or active business professionals

Provide capital, mentorship and contacts


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Companies Backed by American Angels
Angel Investors fuel the growth
engine of the economy
New businesses accounted for ALL net job
growth in the US between 1980 – 2005*

In Canada, small business has accounted for


80 % of total job growth

* Source: Business Dynamics Statistics Briefing: Jobs Created from Business Startups in
the United States. Census Bureau and Kauffman Foundation, January 2009
Angel Investments Can Provide
Superior Returns

On average, organized Angel Investors


achieve a 27% ROI* (2.6 x invested
capital in 3.5 years)

* Source Wiltbank, Robert (2007) ‘Returns to Angel Investors in Groups’, Ewing Marion
Kauffman Foundation
Angel Investing is risky
1 or 2 of every 10 investments brings most of return.
It’s difficult to tell which companies will return.

Angel Networks reduce risk and


improve quality of investments.
Benefits of Belonging to an Angel Network

Aggregated investment
dollars
+
Combined knowledge &
experience
+ = Better deal terms

Vast industry
connections
+
Collective due diligence
Benefits of Belonging to an Angel Network

Higher quality deal flow

Mitigated risk

Greater investment clout

Monitoring & mentoring with talent &


experience

Reduce the burden on individual


investors
There are about 300 Angel Groups in North America &
30 Angel Groups operating in Canada

Why
none
in

Niagara?
Support and Collaboration
Proposed Structure for the Niagara Angel Network

Opportunities

 Seeks Deals
 Screens
 Coaches
 Hosts
Presentations

 Evaluate
NIAGARA
 Due Diligence
Angel Group  Negotiate
 Invest
 Mentoring
Next Steps
Membership Has Its Benefits
1. Show Me the Money

2. You Don’t Have to Go it Alone

3. Diversify Your Portfolio

4. Niagara Venture Forum Events


5. Access to On-Line Investment Community
Membership Has Its Benefits
6. Workshops & Educational Resources

7. Anonymity

8. Networking Opportunities
9. Access to National Resources

10. Drive Business Forward in Your Own Backyard


Next Steps
Join us as a Founding Member of the Niagara
Angel Network
First Membership Meeting – mid January
First Venture Forum – January 25th
First Investment Meeting – scheduled soon
afterwards
Thank you!