Where are they now

1
Where are they now?

• Returns to Invested Capital

• Angel Oregon Alumni

• Risk Performance

Robert E Wiltbank, Ph.D. Professor of Strategy
Entrepreneurship, Willamette University Venture
Partner with Buerk Dale Victor LLC Wiltbank_at_Willam
ette.edu
2
Angel Oregon Alumni

• Raised more than 30M in equity
• Just about ½ pre AO, ½ post AO.

2003

• A 10X exit several profitable.

• Employ more than 250 people

• Over 25M in revenues

• All 15 still operating

• 15 presenting alumni

2004
2005
2006
Robert E Wiltbank, Ph.D. Willamette
University Wiltbank_at_Willamette.edu
3
Returns to Invested Capital

• Smaller venture deals do get to exits
• The returns to those deals are quite attractive

• ROI equates if 3 and 7 year holding periods

• ROI equates if smaller deals fail 91 of the time

4
Returns to Invested Capital

• Pattern is consistent across many sectors

5
Entrepreneurial Expertise in Angel Investing

• Angel Performance Research Manage risk ? lower
  returns
• Select ventures that appear most capable of
  influencing critical market elements.
• Create/Influence localized markets, rather than
  compete in ideal ones.
• 3 promising companies, how pick just one?
  Control vs. expected value
• Emphasize the current means and capabilities of
  the venture rather than plans for acquiring the
  best means to reach their original goals.
• Adjusting goals is less expensive than acquiring
  different means.
• Encourage the venture to make smaller investments
  that get to cash flow positive rather than
  investing in all the resources suggested by
  market research to hit plan.
• Overhead trails growth
• Avoid prediction as the basis for investment
  decisions.
• Emphasize affordable loss rather than maximizing
  expected values.

6
Angels in Oregon

• Significant impact in Oregon.
• Angel Oregon alumni are doing quite well so far.
• Lower invested capital exits are achievable
  attractive.
• Entrepreneurial expertise is relevant to angel
  investing.
• Rob Wiltbank Wiltbank_at_Willamette.edu