Raising Funds from Angel Investors

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Raising Funds from Angel Investors

• Liz Fleming, Programme Manager HBAN

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Who is HBAN?

• HBAN is an all-island business angels network
  targeted at investors looking to meet and invest
  in high potential, early stage enterprises.
• Joint initiative Intertrade Ireland and
  Enterprise Ireland.
• 5.7m -gt 20 start-ups
• HPSUs

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So you are thinking about raising funds?
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Funding Options!

• Self fund easy, fast, stressful
• Grants slow, tedious, no dilution
• Friends Family loan or equity
• Angel equity, added value
• VC equity, added value
• Banks need traction
• Public Offering unlikely

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Recognise, that this will not be easy!

• Do you really need funding?
• How much you need?
• VC or Angel?
• Many will fail

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THE POINT?

• To do or not to do, there is no trying

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VCs and Angels The difference!

• VCs invest other peoples money!
• Angels invest OWN money
• Different Motivations
• Still want to make money!

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What do Angels look for?

• Potential for large return
• Great entrepreneurs
• Exit strategy
• Scalable business model
• Strong business plan
• Unfair competitive advantage
• Go to market strategy!

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How do you approach Angel investors?

• Remember their motivations!
• Dont Spray and Pray!
• Be considerate of their time!
• If you want money ask for advice, if you want
  advice, ask for money! David Cohen!
• Dont ask for Money at the first meeting!
• This is about relationship building!

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Goal of 1st Meeting?

• To get the second Meeting!

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What to look for in an investor?

• Money!
• What else do they bring?
• Domain/sector expertise?
• Experience?
• Contacts?
• Relationship
• What will happen when I miss my forecast, lose a
  contract etc?
• Chairman/director - other added value?

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Tips!

• Getting your first investor encourage others to
  invest!
• Show your investment!
• This is not charity!
• Be yourself!

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Some basic rules

• No Short Cut!
• Great people more important than great idea
• Individual entrepreneurs rarely funded
• More than an idea!
• Product or Revenue, Get paying beta customers
• Understand the real problem/opportunity

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Before you start!

• 1page teaser doc, exec summary
• Investor Presentation- 10 mins
• Full business Plan
• Full revenue model
• Use of Proceeds
• Due diligence references etc.

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How can HBAN Help!

• Decide if ready for funding?
• 1 page template
• Meet and understand your needs
• Circulate it to regional Halo Groups
• Target individual Private investors

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Q A?

• Liz Fleming
• Programme Manager, HBAN
• liz_at_hban.org
• 01-6650420