Angel Capital Association Where We Are and Where Were Going

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Angel Capital Association -Where We Are and
Where Were Going

• James Geshwiler, Chairman
• Marianne Hudson, Kauffman Foundation
• Luis Villalobos, Research Chair
• June 10, 2004

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Current Profile

• 44 members (20 of all angel groups, we think)
• Established operations, branding
• Central Web site www.angelcapitalassociation.org
  
• North American Summit 115 participants
  (representing 61 angel groups)
• Regional events 3 held, others in development
• Member services and tools available developing
• Media coverage of importance of angels, trend of
  angel groups

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ACA Vision

• The Angel Capital Association will be the
  preeminent North American association of angel
  investor groups.

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ACA Mission

• To advance angel investing by supporting the
  development of successful angel groups, sharing
  best practices and industry data, building public
  awareness, and establishing professional
  standards.

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History

• Natural evolution from four Angel Organization
  Summits in 2002 2003
• Concept popular at November, 2003 Summit
• Officially opened for business in January, 2004
• Completed Board of Advisors in January
• Began seeking members in March
• First official ACA Summit - today

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ACA Advisory Board

• Chair James Geshwiler CommonAngels (Boston)
• Vice Chair John May New Vantage Group
  (Washington, DC)
• Treasurer Sue Preston Seraph Capital Forum
  (Seattle)
• Lou Anne Flanders-Stec Piedmont Angel Network
  (Greensboro, NC)
• Mike Franks Active Angels (Toronto)
• Geoff Maletta Angel Healthcare Investors
  (Boston)
• Barry Moltz Prairie Angels (Chicago)
• Bill Payne Vegas Valley Angels (Las Vegas)
• Ian Patrick Sobieski Band of Angels (Silicon
  Valley)
• Luis Villalobos TechCoast Angels (Southern
  California)
• Tom Walker Oklahoma Investment Forum (Tulsa)

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Role of the Kauffman Foundation

• Financial sponsorship
• Staffing during early stages
• Marianne Hudson
• Cyndi Osborne
• Harry Weng
• Jay Ashton (based at New Vantage Group in DC)
• Collect data catalyze research in angel
  investing
• Want ACA to spin-off when its ready
• Recommend continued financial sponsorship when
  ACA is independent

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Member Benefits/ Services

• Education, with discounts
• North American Summits
• Regional meetings (2 meetings/year in some
  regions)
• Platform for networking/ sharing group
  information
• Practical tools for starting growing groups
• Quarterly newsletter
• Publications at no cost or discounts
• ACA member logo on your sites (and your logo on
  ACA)
• Data on groups and quarterly investments in
  development (also portfolio management tools)
• Web portal growing set of operational and
  investing tool on Members Only site
• Input into Kauffman research in field of angel
  investing

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Regional Meetings Suggest Tools

• Databases/ protocol to share recommended deals
  between groups, expertise
• Presentation templates for groups to recruit new
  members
• Calendars of events visit other groups
• Software for screening deals, possibly templates
  for members only portions of group Web sites
• More best practices papers and examples
• Information on state tax credits
• Performance standards, research on investments
• Guidebook for starting new groups available
  today

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Tools on the Web

• Members-Only
• Individual group data,
• Term sheets
• Due diligence checklists
• Best practices other tools
• Available to All
• Directory of groups
• Guides and examples for starting operating
  groups
• Research papers and best practices
• Extensive notes from previous Summits
• Newsletter with practical content
• More interactive tools, data coming

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2003 Funding Summary

• ACA member groups 27 30
• Total invested 52,220,000 55,720,000
• Ventures funded 108 N/A
• Rounds funded 149
  159
• of members 1,288 1,514
• Avg. inv./group 1,934,074 1,857,333
• Avg. inv./member 40,543
  36,803
• Avg. inv./venture 483,519
  N/A
• Avg. inv./round 350,470 350,440

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Member Group Summary

• 48 ACA members their participants
• 21 (10) are 10 years or older
• 52 (25) are 2 years or younger
• 33 (16) have 10-25 participants
• 56 (27) have 50-200 participants
• 3 types of legal entities reported
• LLC 19, C-corp. 4, NMBC 2, none 5
• 12 tax exempt
• 501(c)(6) 7 501(c)(3) 2, NP 3
• NP-- unspecified

Includes pending applications
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Annual Dues

• 43 groups reporting
• 23 up to 1,000
• 10 between 1,000 and 2,000
• 6 at 2,500
• 2 at 5,000
• 1 at 10,000
• 1 at 12,500

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Looking to the Future

• Angel Investing
• Venture market continuing to evolve
• Angel groups being entrepreneurial themselves
• New organizational forms
• New sectors
• New geographies
• Angel Capital Association
• Capture this new activity
• Support with research, PR, networking
• Become the organization that reshapes investing

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VC Explosion Created Opportunities
Source Charles River Ventures, Venture Economics
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Angel Groups Creating New Strategies

• Hard to operate a small VC fund
• Few staff, resources
• Low visibility
• Much easier, better to run large angel group
• Community leaders as members attracts deals
• Expertise can be tailored to each ventures
• Large network gives broad reach
• Syndication combines capital, know-how

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ACA Supporting Evolution

• Membership reflecting range of models
• Sessions, papers focusing on current needs
• Structuring organizations
• Recruiting/retaining members
• Conducting diligence, negotiating terms
• Research initiatives capturing basic traits
• Organizational structure
• Benchmarking
• Networking sharing ideas, perspectives
• Enhance deal flow
• Support regional collaboration

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ACA Redefining Capital Landscape

• Resource center for entrepreneurs, partners
• Information
• Contacts
• Guidance
• Resource center for angel groups
• Data
• Tools
• Expertise

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Thoughts and Questions?

• Well continue developing new services for
  members through
• Regional meetings
• Member survey
• Open to ongoing suggestions