2. Introduction to Heron Capital
Investment • Significant growth aspirations across
type all sectors in the South West
Size • £200k-£2million enterprise value
Development • Entrepreneur driven
stage • First round of external investment
3. Angel Investment
Why? Capital appreciation-Income-Capital preservation….
….definitely not cheap finance….
How? Active vs Passive
When? Work completed
How much? Risk-Liquidity-Return Horizons-Own resources
4. Strategy
Investments that can demonstrate:
• Skill Passion.
• Experience
• Qualifications
Commerciality Skill
• Relationships
• Passion
• Commitment
• Adaptive
• Commerciality
• Focus on revenue
• Conscious of costs
• Risk weighted investment
6. What we look for in the management
•Ateam that can be complemented
•Unique set of skills relative to competitors
•Adaptive with ability to recognise skill gaps
•Ambition to delivery growth
• Understanding competitive environment
• Recognition of uncertainty and perceived risk
7. What we look for in a Business
Our objective
During the journey
At investment
• Product or service • Increase Turnover • Focus on organic
with 4x growth
differentiation • Profit growth to • Consider accretive
• Ability to scale exceed turnover alliances
• Significant or growth • Reinforcement of
growing market • Over a 3-5 years business model
• Investment in
technology, sales,
marketing and
management
8. The journey
• Aspirations
• Time frames
• Due diligence- Advisors/gaps
The deal • Agreements
• Complementing each other- Contacts, skills, challenge
• Building the team, maintaining competitiveness
• Work to a plan but be flexible to adapt
Driving value
• Develop options
• Choosing advisors
• Type of exit
Exit
9. Summary
•Angel investment can be a very rewarding
experience (personal and financial)
•Having a clear strategy is key to successful long
term investment
•Selecting the right company is just the start of
the journey
•Get involved and contribute to value creation!!
