1. Lakeshore
ArchAngels
INVESTOR MEETING

2. Introduction
 Purpose of this meeting:
 Introduction to Lakeshore ArchAngels
 Mission and short/long term plans
 Introduction to Angel Investing and Angel Groups
 Deal flow
 Benefits

3. “
”
to provide a forum for
entrepreneurial-minded
members to invest in early-
stage businesses in the Midwest
Mission statement

4. Mission statement
 Leverage the resources of our community: YOU
 Provide a forum for Angels to hear about investment opportunities
 Provide networking and educational opportunities for both Angels
and entrepreneurs
 Encourage entrepreneurs in our community to consider new
products, expansion, etc. and apply for funding
 Help grow the next generation of entrepreneurs and Angels

5. Intermediate Goals: Yr 2-5
 Creation of programs to support early stage entrepreneurs:
 Startup Weekends/Hackathons
 Incubators
 Structuring of venture fund
 Global outreach (e.g., Russia) for start-up validation and distribution
channels
 Make the non-believers the believers!

6. Long-Term Goals: Year 10+
 Engaged angel group
 Venture fund $100M
 Mentored x# of companies; $1B in post-money valuation
 Positive impact on community-growth in housing, jobs, construction,
etc.
 Shift in perception of our community
 Active in complementary organizations, e.g., World Futurist Society
 Connection with high schools

7. What is Angel Investing?
 What is an “angel investor?”
 Historically, “angels” were individuals who financed Broadway
productions
 Accredited Investor under the SEC rules and regulations:
 Individual annual income of $200,000 or joint of $300,000
 Net worth of $1,000,000
 Angel investing statistics:
 Funding gap
 Angels invest more per year than VCs

8. What is Angel Investing?
 Funding gap
Stage Pre-Seed Seed/Start-
Up
Funding Gap between
$500,000 and
$2,000,000/$5,000,000
(depending on
region)
Early Later
Source Founders,
Friends
and
Family
Individual
Angels Venture Funds
Investment $25,000 to
$100,000
$100,000 to
$500,000
$2,000,000/$5,000,000
and up

9. What is Angel Investing?
 Angels invest more per year than VCs
 Venture Capital ~$.3 billion
 State Funds ~$.5 billion
 Friends & Family ~$60 billion
 Angel Investors ~$20 billion :
90% of outside equity
 Companies funded by angels:
 Google
 Paypal
 Amazon
EarlyLate
VC
Mostly later stage
3,400 deals
$0.5-1.0B per
Year
Angels
49,000 deals
Mostly early-stage
$20B per Year

10. Funding “marketplace”

11. What is Angel Investing?
 Characteristics of an angel investor:
 Invest locally, desiring to give back to their community and prefer to be
close to their investments
 Often successful entrepreneurs & other business professionals
 Members with specialized areas of expertise
 Accredited investors
 Looking for different investment model
 Interested in ROI
 Typically early stage before venture financing or with VC financing

12. What is Angel Investing?
 Why be an Angel Investor?
 Significant possible upside: In recent years, VC investments have
boasted high returns
 Possible involvement in company; cofounder/board member/strategic
partner
 Helping entrepreneurs: rewarding.
 Why not be an angel investor?
 High risk
 Invest only what you can lose
 Can be stressful

13. Why join Lakeshore ArchAngels?
 Consistent deal flow
 Shared due diligence
 Opportunity to diversify portfolio
 Financial gain
 Learn from expertise of others
 Contribute to the growth of companies through mentoring and
advising
 Educational Seminars

14. Deal Sourcing:
How we’ll find investment opportunities
 Angel group members
 Other angel networks and investment groups
 Investment forums:
 Generally screened
 Industry/technology focused, or just early stage
 Interact and learn from experienced angel investors
 Venture capitalists
 Investment bankers
 Professionals: lawyers, accountants, bankers
 Professional/business journals
 Internet

15. Deal Flow:
Sourcing to Exit
Pre-Funding
•Exploratory contact
•Application
•Pre-screen
•Due diligence
•Revisions/Pivots
Funding
•Term sheet and valuation
•Presentation(s)
•Deal structure/documents/legal
•Closing
Post-
Funding
•Monitoring
•Mentoring
•Resources/Network
•Harvesting/Exit

16. Educational Seminars
 Topics include:
 Angel Finance & Valuations
 Deal Screening
 Due Diligence
 Deal Structure and Negotiation
 Post Investment Monitoring
 Tax Credits and Incentives for Angels

17. Next Steps
 Identify potential Angels and startups
 Organize committees for governance, operations, marketing,
membership, deal sourcing & screening, due diligence, investing.
 Plan educational programs
 Finalize group structure & documents
 Align with regional startup community

18. Thanks for listening!
Questions?