How to Access Angel Capital

Entrepreneur Workshop: Accessing Capital From an Angel Investor Network
Your First Professional Investment – Who, What, When, Where and How?

www.mapleleafangels.com

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info@mapleleafangels.com |

416.646.6235 |

@mapleleafangels

Who Am I
• I am Gerard Buckley
– Founder & CEO of Jaguar Capital an Advisory Practice for Growth
Companies in Financial Management, Financial Structuring & Governance
– Chairperson of Board of Directors, Maple Leaf Angels Corporation &
Investor in eight early stage companies
– Entrepreneur in Residence with Incubes (An Internet Company
Accelerator)
– Member of SME Committee of Ontario Securities Comm
– Investment Committee of MSV University, Halifax, NS
– 32 yr. Career with Scotia Capital as a Financial Risk Management Advisor to
Fortune 200 Companies: Rogers, Irving Group, Empire Co., Four Seasons,
Bruce Power, OPG, Province of Ontario, Ford, CAE etc.


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416.646.6235 |

@mapleleafangels

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Agenda
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Who is an Angel Investor
Angel Network in Canada
NACO 2012 Survey
Halo Report – Q 2 - 2013
Maple Leaf Angels
Angel Investing is a changing
The Benefits for Entrepreneurs
Q&A


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416.646.6235 |

@mapleleafangels

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416.646.6235 |

@mapleleafangels

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Who is an Angel Investor
• A person prepared to invest their personal or
family money
• A person who can add value to the company
• An accredited investor as defined by OSC
• A member of an angel network
• The majority of angel investment in Canada is
completed by individuals >85%
• Estimate of Cdn Angel Investment is 916mm in
approx 1500 companies (VC about 2B)

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416.646.6235 |

@mapleleafangels

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Angel Networks in Canada
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NACO – National Angel Capital Organization
32 Angel Groups in Canada
They have collectively about 1000 investors
Three large groups accounted for 58%
The majority have fewer than 50 members
75% of groups set up since 2007
Vast majority do volunteer due diligence
13 Angel Groups in Ontario
Keiretsu Forum & Golden Horseshoe Venture Forum are
Private For Profit Angel Groups

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416.646.6235 |

@mapleleafangels

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Canadian Angel Group Investment
Activity 2012
• 139 Investments in 2012 totaling 40.5 million, an increase
from 2011 of 134 investments and a decrease in
investment from 82.4M
• Average investment is $314k down fr $614k
• 50% of angel groups made over 6 investments in 2012, an
increase of 20% over 2011
• 82% - Ont & Que, 16% West, 2% Atlantic
• ICT (54%), Life Sciences (23%), Clean Tech (10%)
• Valuation – Median 1.55m, Mean 2.06m
• 55% of transactions involved a co-investor

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416.646.6235 |

@mapleleafangels

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Angel Resource Institute –
Halo Report – Q2 - 2013
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Median Angel Round Size trends down to $590K from $680K
Early Stage Pre-Money Valuations remain stable at $2.5M
72% of deals occur in angel groups’ home states
74% of Angel Deals are Syndicated
Median Round Size $1.95M up from $1.4M when co-invested
Share of Deals by Sector - Internet 31.9%(-), Healthcare
20.9%(+), Mobile & Telecom 13.3%(-), Software (nonInternet/mobile) 4.5%(-)


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416.646.6235 |

@mapleleafangels

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Angel Group Investment Distribution in USA


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416.646.6235 |

@mapleleafangels

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Maple Leaf Angels Corporation
• Toronto based and in existence since 2007
• MLA has invested in 22 companies since inception in 2007 for
$9,600,000
• Registered with the OSC as a Exempt Market Dealer
• Currently 45 members
• MLA conducted a strategic renewal in Nov 2011 with a new
business plan released in January 2012 and a new BOD
elected March 2012
• Open and transparent – published funding process
• Continual Entrepreneur support: Curb Side Mentoring,
Volunteer Mentoring, Entrepreneur Workshops etc.

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416.646.6235 |

@mapleleafangels

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The Application Process
• Start with www.mapleleafangels.com
• There is a full education section for
entrepreneurs
• You apply using MLA’s Private Platform
• Investment Review Committee
• Monthly Member Investment Meetings
• Due Diligence
• Term Sheet

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416.646.6235 |

@mapleleafangels

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416.646.6235 |

@mapleleafangels

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Equity Capital Life Cycle
Introduction

Concept and
product
development

Growth

Maturity

Decline

Sales and
profit

Sales

Cash flow
Profit
Time

R&D
Grants
/ Love
Money
$

Start-Up

Pre-Seed
& Seed
Angel
$


Angel
$

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Round 1
VC $


Round 2

Exit

VC $

416.646.6235 |

@mapleleafangels

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Angel Group Benefits
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Qualified Opportunities
Opportunity referral
Increased Capital Diversification
Great Valuation and Favourable Terms in comparison to
VCs
Networking
Portfolio company mentoring or engagement
Shared Due-Diligence
Advisory Board and Board of Director Roles

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416.646.6235 |

@mapleleafangels

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What Angels Look For
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High anticipated growth rate
Experienced management team
Sustainable competitive advantage
Barriers to entry
Clear strategy for commercialization
Proof of concept or enterprise level validation
Business model anchored in Reality
Investor exit strategy


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416.646.6235 |

@mapleleafangels

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Selection Criteria
• The stage, quality of the management team,
valuation and technology of companies are more
important than the sector criteria
• Quality is more important than quantity
• The best of the best should only present and the
number of companies presenting should be limited
to one or two, introduced by someone who is willing
to sponsor or lead the investment and due diligence
process

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416.646.6235 |

@mapleleafangels

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Selection Criteria
• Select the very best in seed and early stage
• Seed investment amounts should be from $250k to
$500K and early stage investments should be from
$350k to $1,500K
• Deal flow of members – both group investments and
private or small group investments should be tracked
and reported on, with clear communication on which
investments went through MLA’s group due diligence


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416.646.6235 |

@mapleleafangels

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Factors that Appear
to Impact Investor Outcome
• Due diligence time: More hours of due diligence
positively related to greater returns
• Experience: An angel investor's expertise in the
industry of the venture being invested
• Participation: Angel Investors that interacted with
their portfolio companies at least a couple of times
per month mentoring, coaching, providing leads and
monitoring performance experienced greater
returns.

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416.646.6235 |

@mapleleafangels

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Five Types of Angel Investors
1.
2.
3.
4.
5.

The Coach Angel Investor
The Do’er Angel Investor
The CEO of a Public Company Angel Investor
The Spectator Angel Investor
The Boss Angel Investor


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416.646.6235 |

@mapleleafangels

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Traditional Angel Network is Changing
• Currently Southern Ontario Angel Investment community
has 13 Angel groups
• Government programs ( IAF, MaRS, OCE, IBI)
• Online - Angel List, Syndicates, The Funded, Gust
• Y Combinator, Tech Stars, 500 Start-ups, +110
Accelerators in Canada
• Incubators & Accelerator funds
• Crowd funding such as kickstarter.com and equity crowd
funding will follow
• Super Angels & Micro-VC’s

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416.646.6235 |

@mapleleafangels

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416.646.6235 |

@mapleleafangels

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Entrepreneur Benefits
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Large capital source
Broad pool of Knowledge & Contacts
Efficient Process
Capital Connections
In many provinces there is investor tax credit
Leverage sources of funding (IAF, IBI, BDC etc.)


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416.646.6235 |

@mapleleafangels

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Target Investee Companies
• Companies who are in seed and early stage, two
for each meeting if the quality can be found
• In technology, provided they are backed by a
member who is willing to sponsor
• Great management team, valuation, technology
.......


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416.646.6235 |

@mapleleafangels

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Contact Information
Gerard Buckley, BBA, FICB, ICD.D
President and CEO
Jaguar Capital Inc.
(C) 416-884-9522
(W) 416-646-6789
g.buckley@jaguarcapital.ca
www.jaguarcapital.ca
Twitter: @jaguarcapital
Twitter: @gerardbuckley
Slideshare: Jaguar Capital


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416.646.6235 |

@mapleleafangels

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How to Access Angel Capital

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