Are you interested in becoming an ivestor!
An individual who invests his own money, typically in small amounts, and typically very early in the cycle of a company – often known as a startup.
Group of individual investors organized together with the goal to invest in companies for profit. They normally support investees with other non-financial resources such as expertise, contacts and own time
1.The Average Annual Return from angel investing is 25 %; This is the best Investment Asset Class if done properly. For comparison here are the returns from other asset classes: Banks – 1%, Bonds – 3%, Stocks – 7%, Hedge funds – 10%, Top VCs -15%
2. Pro-active investor, adds value, has fun
Entrepreneurship without the responsibility
3.Angel Investing is about to take off – power of technology is doubling and costs is being halved
443 of today’s Fortune 500 were not there 60 years ago. Global startup boom expected to be the next global growth driver.
∙ 50% of startups fail completely
∙ 20% return original investment
∙ 20% return profit 2-3 times the investment
∙ 9% return a profit of 10 times
∙ 1% return a profit more than 20 times
∙ The law of big numbers – The average result obtained from a large number of trials (experiments) should be close to the expected value and will tend to become closer as more trials are performed
∙ So, the more companies we invest in the more likely we are to succeed to make profit
∙ Financially stable individual
∙ No more than 10% of free cash
∙ Pro-active investor. Adds other value than money
∙ Long-term view. This is not a short-term game
∙ High tolerance for risk/failure
∙ Even temperament
∙ Strong people skills
∙ Willingness to learn
∙ General love for startups
∙ Invest in the first deal they see
∙ Without thorough due diligence
∙ Outside domain of expertise
∙ At too high valuation
∙ Investing in fewer deals
∙ Not reserving capital for follow on
∙ No long term goal, patience
∙ Dragging the investment process unnecessarily
∙ Demanding too much
Angels should not structure the deal and equity terms in such way that founders loose interest/motivation and/or later stage investors are reluctant to join because of that.
∙ Have fun
∙ Entrepreneurship without the Responsibility
∙ The Joy of giving back
∙ The Social Side – Networking
∙ Keeping up with the world. You can learn a lot by putting your money in a business and by evaluating the pipeline.
CAC is looking for active members. If you are not making investments or contributing to the growth of the group, then the CAC is not the right group for you.
Angel investing by nature is a risky proposition. Like other investment classes, it has been shown that risk can be reduced by diversifying across a broad portfolio of angel investments.
∙ Successful angels Invest in at least 20 companies in the long run (some in 80)
∙ Average investment – 25 000 $ per company
∙ But Investment range can be from 5K to 500 K$
∙ Normally 5 to 10 angels are joining together
∙ 40 companies are reviewed to have 1 deal
∙ Individual angels receive 5-50 pitches p/m and groups 100 and more
∙ 30% from the deal flow are invited for a preliminary screening review
∙ 10% are invited to pitch to the full group
∙ 2% receive funding from at least some members of the group