Making Angel Investing Happen in Your Community

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Making Angel Investing Happen in Your Community

• NASVF Conference
• October 2004
• Catherine Mott, BlueTree Allied Angels

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BlueTree Allied Angels

• Located in Pittsburgh, PA
• Launched in Jul 03 with 10 members
• October 04, growth of 40 members
• 5 investments, approximately 1.5 million
  completed in 8 months a very diverse portfolio
• Pledge fund model
• Manager led group

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Demand for an Angel Network

• Market Research
• Current level of angel investing via individuals
  and informal groups
• Old money vs. new money
• Fertile ground the health and welfare of the
  entrepreneur community or emerging growth sector

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Demand for an Angel Network

• Evidence of Fertile Ground for Healthy Deal Flow
• University R D, tech transfer support
• Federal and State funded activity
• Activity of SBIR,STTR, NIH, DOD, etc.
• State funded incubators and seed funding programs
• Entrepreneurial support programs SBDC, MIT
  Enterprise Forum

5
Demand for an Angel Network

• Fertile ground continued..
• Foundation funded programs for entrepreneurs
• University funded laboratories (CMU Robotics
  Foundry and CyLab)
• Venture Capitalists sniffing around
• Nonprofit business plan competitions

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Demand for an Angel Network

• Angel Motives ROI is the driver
• Regional entrepreneur success stories encourage
  angel activity
• Types of angels
• Check writers
• Sophisticated Angels
• Super Angels

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Demand for an Angel Network

• Benefits of an Angel Network
• Access to quality deal flow
• Participation in larger capital rounds,
  lengthening the runway for future milestones
• Diversification
• Larger rounds can negotiate more attractive terms
  and valuations

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Demand for an Angel Network

• Benefits continued
• Continuity for the dissemination fo information
• Mind-share member knowledge and experience
  (strengthen evaluation process)
• Networking with colleagues
• Mitigating Risks

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Demand for an Angel Network

• Benefits continued
• Attracts new angels (neophytes)
• Can learn from peer interactions
• Can learn from educational events
• Can participate in smaller amounts to test the
  water

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NASVF ConferenceOctober 2004

• Making Angel Investing Happen in Your Community
• Catherine V. Mott, Founder and Managing Partner
• BlueTree Allied Angels and BlueTree Capital
  Group, LLC.
• Pittsburgh, PA
• www.bluetreealliedangels.com