ACCESSING ANGEL

1

• ACCESSING ANGEL VENTURE CAPITAL
• A PRESENTATION TO
• FROM

2
NOEG An Overview

• Incorporated non-profit with a volunteer board.
• Funding from FedNor.
• Mission to stimulate the flow of capital (equity)
• investment and management expertise from
  northern investors into high-growth potential
  Northern Ontario companies.

3
NOEG Accomplishing theMission.

• Formation of local/regional angel investor
  networks.
• Building links to other angel groups to increase
  investment capacity.
• Help entrepreneurs prepare for investment
  through our investor-ready programs.
• Provide a process and link through which
  investor-ready entrepreneurs can access
  accredited investors.

4
Angel/VC Investment Landscape
VCs 2,876 Deals 21B
2004 Investment In North America
Angels 48,000 Deals 22-24B
5
The Traditional Funding Landscape Where Angels
VCs fit

• HIGH
• Level of
• Investment Risk
• Assumed by
• Investor
• Seed Start-Up
  Early Growth Established
• 
  Stage
  of
  
  Business

Founder/Friends/ Family
Government.
Angels
VCs
MA/Equity Markets
Commercial Banks
6
The Funding LandscapeAfter the Meltdown

• HIGH
• Level of
• Investment Risk
• Assumed by
• Investor
• Seed Start-Up
  Early Growth Established
• 
  Stage
  of
  
  Business

Founder/Friends/ Family
Government.
Angels
VCs (VC Ghost Town)
MA/Equity Markets Closed
The Funding Gap for Start-Ups and Early-Growth
Companies is widening
Commercial Banks More Risk Adverse
7
Impact on Entrepreneurs

• Cash is king (cash-flow)
• Must learn to bootstrap (do more with less)
• Valuations will be less
• Must be sure investors have deep enough pockets
  to get across the funding gap
• Harder to get funded

8
Impact on Investors

• Potential reduced investment capacity
• Increased risk of dilution
• Getting stuck with no exit
• BUT ANGELS ARE STILL INVESTING

9
Angels VCsCompared Contrasted
10
Angels VCsCompared Contrasted
11
Angels VCsCompared Contrasted
12
Contact Me

• Thank You and Questions
• Jim Noble, NOEG Regional Coordinator by
• telephone at 1-705-377-7600, toll free 1-
• 866-924-7600 or through our website at
• www.noeg.ca.
• Thank you.