As an accredited investor, Troy Knauss has built a diverse portfolio of angel-only backed deals with some successes, a few failures, and a whole lot of opportunities. In addition to these deals, Knauss has spent time growing companies and volunteering on boards that benefit the entrepreneurial ecosystem. His recent boards include Vice Chairman of the Angel Resource Institute, a spinout of the Kauffman Foundation, the Greensboro Partnership’s Entrepreneurship Connection, The Launch Place, and Wake Forest University’s Advisory Council for the Center of Entrepreneurship. According to Knauss, “There is no greater reward than helping a fellow entrepreneur realize his/her dream. It doesn’t matter if that dream is to simply start a company to build an income or to grow a high-value business with the ability to create major wealth creation when it is sold.” Knauss expects to continue to invest in 4-5 deals per year.
Every angel portfolio needs some real gems to provide an overall return. Selecting which companies to add to your angel portfolio sometimes feels like hunting for an elusive pearl among thousands of oysters. So many look the same from the outside. Are there telltale signs that point to which oyster contains the pearl without having to pry open every one?
Developing a strong angel portfolio includes a couple of pieces. It’s important to build a diversified set of deals in your portfolio and to figure out how many companies to invest in and which types to focus on. Another piece to the puzzle is to follow good investing practices to make each individual investment decision. In other words, there are tried and true ways to increase the chances that you are actually selecting good investment deals. The simple truth about finding pearls—investment or otherwise, is this: both require a crystal ball, however there are definitely proven ways to increase your odds of success.
Here is some practical advice from three veteran angels, John O. Huston, founder and chair emeritus at Ohio TechAngel Funds,David S. Rose, founder of the New York Angels and Dan Rosen, chairman of the Alliance of Angels in Seattle. I have tried, use and recommend these simple processes. With a little luck they may help you put more pearls in your portfolio:
Select entrepreneurs you trust. If you can’t work with the people in the company you want to invest in, it can’t work. Huston says, it’s like “the old Warren Buffet comment—you can make a bad deal with a good person, but you can never make a good deal with a bad person.” Make sure they are being honest with you. Integrity goes a long way.
Do your due diligence. Every company will carry some amount of risk. There is no way to know at the beginning how things will turn out during the life of working with a company. So you must know the ins and outs of a company before investing. This requires doing due diligence. The downside is it will slow down the amount of companies you have time to invest in or the time required will make you miss a competitive deal when other investors make quicker decisions, but that may not be a bad thing. If something in the company is off and you don’t do the deal, it’s better for your portfolio. Due diligence is easier if you stick with what you know. Focus on your region or area of expertise. Be honest with yourself about how many deals you can analyze and do a good job on.
Make sure the math works. Sometimes a company seems so promising, you don’t realize that the math actually doesn’t work to your favor. Make sure that as an angel, your investment and your exit make sense even if it seems like the startup has unusually big potential. Don’t invest in companies with overly high valuations, for instance. Huston’s experience has taught him a lot along the way in this regard. “When I first started investing 15 years ago, I was all about trying to see if this company could turn into a great company. Now having seen such companies turn into great companies but absolutely lousy investments for me, I am much more focused on whether this is a good investment for the angels.”
Consider more than an initial investment. The one-and-done idea may not work to your advantage as an angel; if the company needs more money later, doesn’t get it and then goes under, then you have a loss and your portfolio suffers. Address this by monitoring the company’s finances and being prepared to offer an initial investment plus an additional investment later. This offers great visibility into the company and helps you make better decisions about whether to make additional investments in the business.
There’s a point along every entrepreneur’s path to success where the option is either to acquire capital or watch your company crumble. But there are subtleties to capital that all entrepreneurs should know.
It’s important, for instance, to know that the right kind of funding can have a huge impact on the direction of your company. In a recent survey of small business owners, fully half of the businesses surveyed, with 11 to 50 employees each, listed “cash flow” as their top concern. Twenty-one percent reported a closely related issue, “raising capital/funding,” as their top concern
These concerns reflect what small business owners everywhere face. Capital is easier to access than it has been in the past, but it is still imperative that owners choose the funding source that will best match their specific needs.
Even billionaire entrepreneur Richard Branson has pointed out that an investor’s deep pockets are “not the essential quality that will sustain the relationship and the business in the long term.” So, if you are unfortunate enough to choose the wrong financial partner, your move — according to Branson and common sense — will “dim the spirit and enthusiasm of a new enterprise, muffling the spark that prompted you to launch this project.”
That spark, Branson said, is the one that “is most likely to make your venture different from your competitors.'” Here, then, are some tips for recovering that spark and finding the right investor(s).
1. Understand the different investment options you have.
The Small Business Administration Venture Capital Guide provides a detailed overview options in the types of investment options you should be aware of.
- Private equity (PE). PE covers a number of investment types that are usually made by private individuals or privately-owned institutions to purchase a company, fund a project or make a private investment.
- Venture capital (VC). VC investments are managed differently and usually designed to fund startup companies with the potential for high growth. VCs also provide startups business-planning expertise and assistance.
- Angel investing. Angel investors are high net worth individuals who seek high returns through private investments in startup companies.They provide similar startup financing as venture capitalists in smaller amounts.
Entrepreneurs looking for funding should also consider government venture capital programs available through the SBA’s Small Business Investment Company (SBIC) program. SPICs are privately owned investment funds guaranteed by the SBA to offer equity and debt investments to small businesses.
The SBA itself has loaned out more than $19 billion in 2014 to small businesses. Many of the restrictions that have been implemented in the past have been lifted, and more loans are now available.
How do you choose between seed investors vs. angel investors and venture capitalists? A post on the Grasshopper blog explains: “If you need a small amount of money to get going, you’re looking for seed money. A seed investor invests tiny sums into a company during its earliest days, hoping to grab a percentage of companies before they explode.
YCombinator is an example of a seed investor, the blog says, continuing: “If you need a larger investment, you’re looking for angel investment. Angel investors are typically retired businesspeople who keep an eye out for investment opportunities. Substantially higher investments tend to come only from venture capitalists.”
2. Know what you want investors to provide for you.
How involved do you want your investors to be?
Bo Yaghmaie, a partner at law firm Cooley LLP, has written in Entrepreneur that when meeting with potential financial partners, “You’ll want to ask questions about their most recent investments, what they typically provide to companies, their expectation of CEOs and how involved they like to be.” All of these questions can help determine whether the partnership will be the best one.
Other factors you should aware of when it comes to potential investors include: their area of focus, the stage of development they invest in and their reputation.
3. Perfect your pitch to find the right match.
Take time to think about what you want to say. How will you share your mission and attract someone who shares your vision? Yaghmaie provides pointers in another Entrepreneur article. He says: “Here’s the short answer: start with a great pitch deck. The pitch deck is arguably the most important document you will generate in the life of your company. It is ‘the hook’ by which you will capture the attention and imagination of an investor.”
Discuss how your product or service will solve a problem. The SBA recommends fine-tuning your pitch based on the investor you’re pitching to.
Finally, have a clear business plan and “be sure to include realistic financials and market research to back up your predictions,” advises the SBA. “Plan on being able to communicate sound bites from your plan, particularly how you will generate profit and how that will flow into your investor’s pockets.”
When you’re raising capital, you may feel that you should accept any money that comes your way. This approach is wrong, says David Cohen, an angel investor and co-founder of startup accelerator TechStars. In his book Do More Faster, Cohen explained why the investor-entrepreneur relationship is important. Like any relationship, he wrote, the wrong one can pull you in the wrong direction, whereas the right one will take you where you need to go, faster, more efficiently and as part of a winning team.
Article source: http://www.entrepreneur.com/article/246997
Equity Crowdfunding for Investors
Equity Crowdfunding for Investors: A Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms
Until 2012, by law, angel investing was restricted either to the very wealthy or to the founders of private companies, along with their family and friends. Title III of the JOBS Act lifted this restriction, allowing startups and burgeoning businesses to sell equity to all investors, not just accredited ones, through online crowdfunding portals. Pending final rules from the SEC and FINRA, crowdfunding portals with unrestricted Title III offerings may launch this year.
This will be an entirely new investment opportunity for “the rest of us,” one that needs a help manual, with online updates. And we get just that in Equity Crowdfunding for Investors: A Guide to Risks, Returns, Regulations, Funding Portals, Due Diligence, and Deal Terms by David M. Freedman and Matthew R. Nutting (Wiley, 2015). Freedman is a financial and legal journalist; Nutting, a corporate lawyer who is a director of the National Crowdfunding Association.
Equity crowdfunding is fundamentally different from rewards-based crowdfunding, the best known example of which is Kickstarter. If you invest in a company on Kickstarter, the best you can get is the promised reward—a T-shirt, for instance. You are not getting any equity in the company. No matter how successful the company is, all you have to show for your investment is one lousy T-shirt.
Of course, a T-shirt is better than nothing, which is probably what you’ll reap from your equity investment. Ian Sobieski, founder and manager of the Band of Angels, one of the most successful angel groups in the U.S., said that they’d made more than 200 investments (actually, the authors write, 270). “If you take the top nine performing deals out of the basket, the IRR [internal rate of return] drops to zero. So only one in 20 really moves the needle. Since the average investor invests in only 10-or-so deals, the odds of any one angel being in a winner are only 50 percent.” (p. 105)
The authors suggest that a person needs two qualities to be a successful investor in equity crowdfunding: judge of character and patience. “When you invest in a company that has a limited track record in terms of revenue, or even product distribution, you need to judge whether the founder (or founding team) has what it takes to succeed. Experienced angel investors commonly ‘bet on the jockey, not the horse.’” (p. 114) And you must be willing to hold onto your shares. “In equity crowdfunding, under Title III, when an investor buys shares in a company, he or she must hold those shares for at least a year before trying to sell them, with some exceptions. Even after the first year, those shares may be difficult to sell—who will buy them? There may not be a ready market or exchange for them; in other words, they are illiquid. In the past, angel investors typically had to wait seven or eight years before an exit or liquidity event occurred or selling their shares became realistic, if, in fact, the companies still existed after eight years.” (p. 115)
If, despite the caveats, you’re still game, Freedman and Nutting lay out in great detail how to get started, how to navigate the portals as well as the law, and how to be a wise investor. As the regulatory bodies continue to write the final rules, it’s a perfect time to get a head start on what will undoubtedly be an exciting new area for would-be angels.
Kickstarter, Equity Crowdfunding, and the JOBS Act: New Webinar about Angel Investing and Crowdfunding to Premier on July 7th. Learn how to be an angel investor.
Chicago, IL (PRWEB) July 01, 2015
Kickstarter popularized crowdfunding. Today, accredited investors can invest on-line though hundreds of crowdfunding websites. Soon, thanks to the JOBS Act, almost anyone will be able to.
Financial Poise and Accredited Investor Markets are pleased to announce the premier of “A Guided Tour in a Crowded Landscape: How to find the Right Crowdfunding Site for You” on July 7th. Designed to teach potential investors about angel investing and crowdfunding, the webinar will discuss the great variety of crowdfunding websites that exist today and some of the factors one should consider before deciding whether to invest in one. Click http:// here to register.
Join Dave Freedman, co-author of Equity Crowdfunding for Investors
(Wiley Sons) as he moderates a panel of industry leaders Eric Smith (Crowdnetic); Charlie Sidman (ECS Capital Partners LLC); and Heather Schwarz-Lopes (EarlyShares) in a conversation that provide a broad overview of the crowdfunding landscape.
Financial Poise provides unbiased news, continuing education, and intelligence to private business owners, executives, investors, and their trusted advisors. For more information and to read free interesting articles go to http://www.financialpoise.com
For the original version on PRWeb visit: http://www.prweb.com/releases/2015/07/prweb12821088.htm
Being excited about an investment is the most important thing that should guide an angel’s decision to invest, and the motivation behind investing should be to have fun, according to South African entrepreneur Alan Knott-Craig Junior.
Knott-Craig believes angels should only invest in projects where either the founder or the business idea spikes the investor’s excitement, as this is the best way to counterbalance the low success rates of angel investing.
“For angels, being excited is the most important thing. Excited about the jockey, or idea, or both. The stats show your odds of making money as an angel investor are very low. Don’t angel invest to make money. Do it to have fun,” Knott-Craig told Disrupt Africa.
While Knott-Craig concedes that certain business and strategic filters will apply to any investment decision, he believes this sense of excitement is the most critical filter of all.
Nonetheless, he says having strong filters in place – such as fitting in which current trends, and having a competitive advantage – will play into a startup’s likelihood to produce returns for the investor.
“An angel investor is probably having fun, trying to learn something new, trying to help a youngster out, and finally, trying to make some money. The “making money” part is [critical], which is why you need filters, otherwise you may as spray your cash everywhere, with no expectation of financial return,” Knott-Craig said.
Having made an investment, Knott-Craig advises angels to stay away from the running of the project. For this reason, he says angels should feel free to invest in any sector, regardless of their experience or knowledge of the area.
“Angels should be hands off. Most angels I know want to be hands off,” he said.
“Normally [investments are in]a completely new field so the angel can learn something new.”
I’m often asked why I decided to move back to Israel from New York to found iAngels.
Growing up in a high tech home, and later marrying into one, I found myself surrounded by talented entrepreneurs – young and ambitious colleagues, peers, and friends who have gone out to change the world by creating a product that launches into international markets. The dynamic Israeli startup ecosystem, with over 1,000 new startups founded every year, has cultivated a generation of young men and women with technology innovation at heart, and a determination to succeed despite the hardship along the way. This is my generation.
My friends from military service at Israel’s Central Collection Unit of the Intelligence Corps, peers from my bachelor’s degree in the Mathematics and Computer Science program at the Technion (Israel’s premier technology university), or from other circles were always working on the next big thing. Who is working on what, who raised a consecutive round, who launched in the US? These are the kind of dinner conversations we used to have on a daily basis.
Even though I personally knew these overachievers, I was not yet ready to take a more active role in “Startup Nation” by founding my own startup or even investing in one. I couldn’t yet afford to invest hundreds of thousands of dollars in a single startup and it seemed too risky to put all my eggs in one basket.
Moving to NY to pursue my MBA at Columbia Business School, I was exposed to a completely different industry. I transitioned from a techy software engineer to a business and strategy professional in my own right. A strategy consultant for IBM and Amdocs, I witnessed firsthand some of the challenges entrepreneurs go through when launching in a different market and what the tech giants were looking for when considering an acquisition.
When talking to businesspeople in NY, I found that personal challenges, such as knowing how to choose the right investments or making sure my interests are being taken care of while balancing my portfolio and risk preference, were not only my own concerns but others’ as well. These questions arise every day, especially now, as crowdfunding is booming.
I wanted to start something that would bring all of my skill set into play. Marrying the technology aspect with the business and strategy seemed only natural. The New York experience made me realise that investing in Israeli startups could make for a perfectly solid standalone business. Partnering with Shelly Hod Moyal, my Investment Banking friend of many years (Goldman Sachs associate and Avenue Capital research analyst are just some of her career achievements), we decided to enable those around us to conduct angel investing in a responsible, transparent and informative manner and start investing in Startup Nation at a capacity that makes sense for them.
Co-investing with the smartest people in the room, or better yet, the smartest and most successful professionals in the industry, makes a lot of sense. This is how the iAngels model was born.
The Israeli startup ecosystem is growing with second and third time entrepreneurs diving back into the industry, building bigger and better companies and focusing on international markets from day one. More than 100 exits occur in Israel every year, with significant IPOs such as Israeli record breaking Mobileye with $5 billion valuation and Matomy at $350 million. Tech giants are acquiring companies in Israel like the Google acquisition of Waze at $1 billion, the Apple acquisition of PrimeSense at $350 million, and the Rakuten acquisition of Viber at $900 million. The global community cannot get enough of what is now becoming Scale up Nation.
Today, we are following and learning from the best investors in the industry and are the Industry Insiders of Israeli Tech. Key verticals we see in action are Fintech, Enterprise Software, Internet, Mobile, Cyber and even Gaming. In future posts, we will dive into some of these verticals and the opportunity the Israeli ecosystem presents.
NEW DELHI: The man who chauffeured India to its first cricket World Cup win in nearly 30 years is in the limelight again, this time in his new avatar as a prolific investor.
Yuvraj Singh, the 33-year-old southpaw recognised as one of the country’s greatest limited-overs specialists, has struck four deals since he launched his investment firm YouWeCan Ventures in April, a scorching strike rate even for established investors.
While India’s angel-investing landscape is awash with celebrities including actor Salman Khan and cricketer Sachin Tendulkar, Singh’s YouWeCan is the first attempt by an Indian celebritysportsman to create an institutionalised investment structure.
The cricketer, who snatched a record $2.5 million (Rs 16 crore) contract to play for the Delhi Daredevils in the latest IPL, bankrolled YouWeCan with Rs 50 crore of his own money, but it is cofounder Nishant Singhal who charts its strategy and identifies potential investments.
“(Singh) has 9 million fans on Facebook, three million followers on Twitter. They’re his digital assets, and that’s what we’re looking to leverage,” said Singhal, who previously was with global consultancy Pricewaterhouse-Coopers for over a decade.
Singhal, who has known Singh for the last six years, said several people had approached the cricketer in the last 24 months to invest in startups.
“We decided that we weren’t going to do one-off investments, but create a more formal structure instead,” Singhal said. YouWeCan is structured as a family office but plans to shortly convert into a venture capital fund with a target corpus of Rs 300 crore.
Presently, it invests Rs 1 crore to Rs 1.5 crore in startups in a co-investment model, picking up 12-15 per cent stakes in portfolio companies.
The decision to set up YouWeCan Ventures coincided with the entry of hordes of global and domestic investors rushing to invest in Indian startups. The country’s technology ventures have emerged a top draw, with investments breaching the $1-billion benchmark for the first time in a single quarter. Singh treads a path blazed by American athletes such as basketball superstars Carmelo Anthony of the New York Knicks, who launched Melo7 Tech Partners, and Phoenix Suns’ Steve Nash who has a hybrid marketing consultancy and venture capital firm Consigliere.
He could also do well to pitch his firm on A-Grade Investments, a venture capital firm cofounded by Ashton Kutcher, an American actor with a middling record but a phenomenal reputation as an investor.
A-Grade has backed some of the world’s most successful startups, including Spotify, Uber, Airbnb and Shazam. In the post-Tendulkar era, Singh, along with Mahendra Singh Dhoni, ranks as one of the biggest poster boys of Indian cricket, and the attraction with advertisers and the public continues although his international career is waning. “We are looking for ventures where there is a possibility to leverage Yuvraj as a brand, which we hope will shine a larger spotlight on the ventures we back,” said Singhal. EduKart, one of the four startups YouWeCan has invested in, is taking advantage of that.
“(Singh) has the ability to bring a very different, yet extremely influential network, and he will come on board as a brand ambassador,” said Ishan Gupta, CEO of EduKart. The other ventures in YouWeCan’s portfolio are on-demand logistics booking platform Moovo, beauty services platform Vyomo, and online healthcare marketplace Healthians.com.
“The brand that he brings to the table is just outstanding,” said Deepak Sahni, founder of Healthians that has witnessed a 10-15 per cent increase in traffic since Singh announced his investment in the firm.
Since February 2011, MIT and Stanford-trained Rajan Anandan has been the man in charge of Google in India.
In those four years, apart from driving the internet giant’s growth in the country, Anandan has also been busy playing a hand in India’s booming startup ecosystem. In the recent months, the former Dell and Microsoft executive has emerged as India’s most prolific angel investor, according to data compiled by financial research firm, Venture Intelligence.
Between January 2014 and June 2015, Anandan invested in 15 startups, mostly in IT ITES (information technology and information technology enabled services) sector with the lone exception of a healthcare startup. The value of Anandan’s investment is unknown since he has invested along with friends or other venture capital firms.
Quartz has emailed Anandan to confirm the numbers but we haven’t heard back yet.
Among Anandan’s investments over the past year are online fund raising company LetsVenture, online city and lifestyle guide portal Little Black Book and crowd funding website Wishberry.
Here’s how he explained his investment philosophy in an interview to The Economic Times last year.
I run Google India. That’s what I do 15 hours a day. That leaves 1-2 hours a day, during the week and weekends when I spend time with start-ups. The way I am able to manage is by three things. One, In India I invest only in technologies I know really well. So very quickly I can figure out yes or no. Second, I always co-invest with others who have more time than me.
Third thing is that I am very clear as to where I can add value and where I cannot. For example, I can help with building the team as I know lot of people in the eco-system. Besides, experience helps. I have been doing angel investing since 1991. When I see a company I can make decisions fast.
Anandan—who started out as a part-time angel investor in 1991—is estimated to have a portfolio of 40 investments across India, Sri Lanka and the US. He is also the co-founder of Sri Lanka-based venture capital firm Blue Ocean Ventures.
Anandan is followed by Krishnan Ganesh, founder of online tutoring company, TutorVista and Deepak Shahdadpuri, founder of Beacon India Private Equity Fund, as India’s most prolific angel investors. Since 2014, Ganesh has invested in 10 startups, while Shahdadpuri has invested in nine.
Kunal Bahl and Rohit Bansal, co-founders of online market place Snapdeal, have also turned angel investors. In 2015, both Bahl and Bansal invested in four startups. The duo’s portfolio includes online market place for travel Headout and clothing company, Bewakoof.
India is currently the world’s third largest startup ecosystem with over 3,000 new companies as of 2014. By 2020, the country is expected to have 10,500 startups, according to The National Association of Software and Services Companies (NASSCOM).
And the startup boom is steadily heating up. In the first six months of 2015 alone, startups in India received more funding from venture capitalists than the whole of last year, according to New Delhi-based consultancy firm VCCEdge.
TORONTO, ONTARIO — (Marketwired) — 06/29/15 — The National Angel Capital Organization released its annual Angel activity report. The report, which is based on a survey of 30 Angel groups across Canada, reveals that these groups made 237 investments in 181 companies, amounting to $90.5 million, with an additional $110.4 million of funding leveraged into the investments.
“We’re deeply encouraged by the results of this year’s report, which shows that the increasing connectivity of our member Angels is helping to provide Canadian companies with the capital they need to continue growing locally.” Yuri Navarro, NACO Executive Director.
New this year, Industry Canada has contributed a section to the Report. Industry Canada compiled and analyzed a dataset of 110 Angel-backed firms that received funding from NACO members between 2010 and 2012, to further analyze the impact of Angel investment on job creation and investment in innovation for early-stage companies. The data was captured in NACO’s 2014 Report on Angel Investing Activity in Canada: Harnessing the Power of Angel Investors (Angel activity report), which was released today on its website.
“Our government is a proud partner and contributor to NACO’s report on the state of Angel capital investments in Canada. Through the Venture Capital Action Plan, we are committed to supporting entrepreneurs who invest and innovate, resulting in the creation of jobs and economic growth across Canada.” – Industry Minister James Moore.
“In addition to the large amount of Angel funding being put into innovative companies, we are seeing a direct connection between Angel investing and a stronger small business economy. We see an increasing amount of high-paying jobs created, enabling a stronger, more vibrant and diversified economy in Canada.” Michelle Scarborough, NACO Chair.
NACO 2014 Report
Across Canada, 30 Angel groups participated in the 2014 survey, representing over 1,700 investors coast to coast. Angels tend to invest in close geographic proximity, with a majority (63%) of Angels located in Central Canada, 30% in Western Canada, and 7% in Eastern Canada. Angels are essential to the Canadian economy, driving innovation and fueling job creation.
This year’s report also included a review of data which shows that 88 Angel backed companies created 764 new high paying jobs between 2010 and 2012, and invested more per employee in RD than non-Angel backed companies.
Over 80% of Angel funded startups fall primarily within 2 sectors: ICT (information-communication technology) and Life Sciences (health related companies) distantly followed by clean technology. Investments in Life Science firms tend to be double the investment in ICT or Clean Technology. Furthermore, the Angel activity report indicates that 75% of the deals are syndicated, involving capital outside the Angel Group.
Looking ahead at the future of Angel investing in Canada, Angel groups have identified a need to collaborate by sharing resources, tools, and best practices across groups as the key to supporting growth, better deal flow and outcomes.
NACO Report History
The Angel activity report conducted by NACO examines Canada’s Angel investor community, and identifies key industry trends and best practices for investors and entrepreneurs.
Since 2010, the report has captured 712 investments, in 409 companies. This represents a remarkable $270 million injected into the Canadian entrepreneurial ecosystem, with over $180 million invested over the last two years.
The 2014 Report on Angel Investing Activity in Canada: Harnessing the Power of Angel Investors, the fifth of its kind, is released in partnership with the Government of Canada, KPMG Enterprise and BDC Capital.
“BDC Capital plays an active role in Canada’s early-stage ecosystem and we are proud to partner with NACO on the 2014 Report on Angel Investing Activity in Canada,” said Dominique Belanger, Vice President, Strategic Investments and Partnerships at BDC Capital. “The findings point to an increase in both collaboration and co-investing, which will enable Angel-backed firms to create jobs and wealth here in Canada and to be more competitive globally.”
“NACO’s Angel Activity Report shows how active and engaged Canada’s Angel Investing network has become. KPMG Enterprise is dedicated to helping small and medium sized Canadian companies flourish. NACO’s active Angels are achieving this by allowing new startups the time to grow and prosper, and we are proud to support this important work,” says Dennis Fortnum, Canadian Managing Partner, KPMG Enterprise.
About the National Angel Capital Organization
The National Angel Capital Organization accelerates a thriving, early-stage investing ecosystem in Canada by connecting individuals, groups, and other partners that support Angel-stage investing. NACO provides intelligence, tools and resources for its members; facilitates key connections across networks, borders and industries; and helps to inform policy affecting the Angel asset-class. For more information please visit www.nacocanada.com or follow us on Twitter @AngelCapCanada.
About BDC Capital
A subsidiary of the Business Development Bank of Canada (BDC), BDC Capital offers a full spectrum of specialized financing and investment solutions to help Canadian entrepreneurs achieve their full growth potential. With more than $1 billion under management, BDC Capital takes a strategic, patient approach to nurture companies’ development over the long term.
From venture capital to equity to growth and transition capital, our team of over 100 experienced, local professionals partner with entrepreneurs to identify and meet their needs on flexible terms. Some of the sectors in which we specialize include IT, industrial/clean/energy technology, and healthcare. For more information, please visit www.bdccapital.ca or follow us on Twitter at @BDC_Capital.
About KPMG Enterprise
KPMG Enterprise was formed in 2004 to respond to a growing need for a professional service firm that focuses on private companies. We were the first to dedicate a team of advisers exclusively to entrepreneurs, family businesses, and emerging fast growing companies. Our global network of trusted advisers are well positioned to respond to the specific needs of private companies. We bring extensive resources and expertise in audit, tax, and advisory services, scaled to the needs of our clients. We provide financial, operational, and strategic advice during any stage of the business lifecycle. For more information, visit www.kpmg.com.
Canadian Angel Investors
30 Angel groups across Canada, representing 1,700 active Angels made 237 investments amounting to $90.5 million.
A majority of Angels (63%) are located in Ontario, with 30% in Western and 7% in Eastern Canada.
The average deal size was $1.2 million, an increase over 2013 and 2012 figures.
80% of funding falls within 2 sectors: ICT (information-communication technology) and Life Sciences (health related companies).
75% of the deals are syndicated, involving capital outside the Angel group and receive more investment.
10 positive exits (from 9 companies) of which eight were MAs and one was an IPO.
New investments increased by 66% in 2014
Central Canada continues to be the hotspot for Angel investment activity with 89% of investments made in the area.
Funding Success Funnel in 2014
2972 startups applied for Angel Funding
695 companies presented(i)
271 companies went through due diligence
237 companies were funded
(i)based on 24 of the 30 groups that reported the number of presentations held
For more detailed data and/or to arrange an interview with
NACO Michelle Scarborough or
NACO’s Executive Director Yuri Navarro:
Ioana Stoica, Marketing and Events Manager, NACO
416 581-0009 Ext: 2
President, Durrell Communications
Article source: http://www.sys-con.com/node/3349175
Allison Supply provides once-fired, reconditioned, processed brass cases to the reloading community. The North Carolina-based company was started by a serial-entrepreneur with a strong history of starting and growing companies, Greg Pool. Joining Pool on the deal is Troy Knauss, an accredited angel investor with over 40 early-stage companies in his portfolio. This is not the first time these two teamed up on a deal; their last deal together returned more than 10X to investors in only 15 months.
Allison Supply offers both pistol and rifle brass cases to consumers and commercial reloaders. For more information on the company visit www.allisonsupply.com. The company offers extended terms to reloaders to help with cash flow. If you are a commercial reloader, you can fill out a credit application at http://www.allisonsupply.com/brass/credit_application.php.