Download Exec with a Check

Investor Briefing Series:
Ways Angel Investor make a
Return on their Investment
Welcome to our Investor Briefing Series
Intro
 Set the Stage
 Legal aspects of the transactions
 Valuation critical at every stage
 Merger or Acquisition
 Public Market Liquidity
 Small Cap and Traditional
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3/15/06 Ways an Investor Gets a Return on their Investment.
Network of Business Angels & Investors
Commitment to Education
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Best way to Create a Thriving Angel
Community
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Origin of ezine
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“how to be an angel investor”
National statistics on Angel Investor activity
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Avg investment $40K, with small group at $250K
Avg deals considered 15, 2-3 receive investment
66% latency
#1 factor, not availability of capital, but knowledge
and comfort with the process
3/15/06 Ways an Investor Gets a Return on their Investment.
Network of Business Angels & Investors
Active Angel Investor is….
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An Exec with a Check
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Take an executive role in the company
Participates through salary, profit sharing as
the company builds
Benefits from exit and liquidity event as a
share holder
Tax Implications depends on structure
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LLC, or Sub S pass through specific tax forms
C Corp losses, gains held with the company
3/15/06 Ways an Investor Gets a Return on their Investment.
Network of Business Angels & Investors
Passive Angel investor may have…
A board seat
 Representative of group that is active or
has board seat
 May benefit along way with dividends
 Main focus is on building value of the
company to maximize return at liquidity
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3/15/06 Ways an Investor Gets a Return on their Investment.
Network of Business Angels & Investors
Buying and Selling Equity
Regulated business
 Legal transaction
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Documents to establish rights and
expectations
Sterling Hawkins, Marshall Lueder
Getting the most Value
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Many factors impact the value of the company
Charles Wilkinson, Wilkinson & Callender
3/15/06 Ways an Investor Gets a Return on their Investment.
Network of Business Angels & Investors
Reaching Liquidity
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Acquisition Market
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Strong and growing
Funds for companies to buy companies
Private Equity Funds
Greg DeFoor, DeFoor Services
Public Market Options
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Private Investment into Public Entities
Small Cap IPO options
Joel Arberman, Public Financial Services, LLC.
3/15/06 Ways an Investor Gets a Return on their Investment.
Network of Business Angels & Investors