Creating a University Angel Group

Transcription

1 The National Council of Entrepreneurial Tech Transfer Kent State University College of Business Administration Creating a University Angel Group to Fund Your Student, Faculty, Researcher and Alumni Startups

2 AGENDA I. What is angel investing? II. What is an angel network vs. angel fund? III. How does a university benefit by creating an angel network for their startup ecosystem? a. What does an angel network do and how does it operate b. How do angel networks assist students understand entrepreneurship and startups c. What are the academic benefits of having an angel network IV. How to set up a university-based angel network? a. How do you find a champion to lead the process of creating a network? b. Establishing affiliated alumni mentor network to work with the university angel network c. Establishing affiliated business/technology adviser network to work on proof-of-concepts and startup development V. What can NCET2 do to help you set-up your own angel network?

3 TONY STANCO Executive Director National Council of Entrepreneurial Tech Transfer (NCET2)

4 I. What is Angel Investing?

5 What is an Angel Investor? WHAT IS AN ACCREDITED INVESTOR? a natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million; or a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000

6 Angels Drive Most Startup Funding Angels deploy own funds and make own investment choices Approximately 200, ,000 active angel investors

7 ANGELS FUND MAJORITY OF STARTUPS $24.6 billion 71,000 deals 17,750 seed Angel Investors 31,950 early stage 305,000 individuals $2.6M Average Seed/Early Stage Pre-Money Valuation $347K Average Investment per deal (all deal sizes) $59.1 billion* 4,380 deals 186 seed Venture Capital 2,219 early stage 718 active firms $5.1M Average Seed/Early Stage Pre-Money Valuation $13.6M Average Investment per deal (all deal sizes) Sources: Angel Investing Market for 2015, Center for Venture Research/ UNH; NVCA 2016 Yearbook; PwC MoneyTree

8 PROFILE OF ANGEL INVESTORS Years investing 9 Number of investments 10 Years as entrepreneur 14.5 Number ventures founded 2.7 Percent of wealth in angel investing 10% Education Masters degree Other backgrounds: corporate leaders, professional services Source: Returns of Angels In Groups, Robert Wiltbank, Willamette University, published by Kauffman Foundation

9 2015 Share of Angel Group Deals by Region Source: Angel Capital Association

10 ANGEL GROUPS VARY BY NUMBER OF INVESTORS Source: ACA Member Group Survey, March 2015

11 AND ALSO IN DEAL 40% 35% 30% 25% 20% 15% 10% 5% 0% ACTIVITY Number of Investments Per Group in 2014 Less than 5 6 to to to to 30 More than 30 Average = 10.3 Median = 7.0 Highest = 61 Deals per group Source: ACA Member Group Survey, March groups reporting

12 University Angel Groups Are Different University angels are more hands-on, more mentoring, come in earlier, try to help university and students Traditional ones act like VCs i.e. come in later SBIR ---- University Angels Fund the Valley of Death

13 ROBERT D. HISRICH, PH.D. Bridgestone Professor of International Marketing and Associate Dean of Graduate and International Programs at College of Business Kent State University

14 II. What is an angel network vs. angel fund?

15 Definitions Angel group Angel fund Angel network

16 III. How does a university benefit by creating an angel network for their startup ecosystem?

17 Benefits of University Angel Networks Provide education for students and faculty Student training and experiential education Create, develop, and fund startups at the university Serve as mentors for these startups Bringing high net worth individuals to the university Assist in economic development in the region Invest in local companies to increase economic development in the area

18 ANGELS FUND HIGH-GROWTH COMPANIES Number of Employees One Year After ACA Member Investment 30% 25% 20% Average = 41.4 Median = % 10% 5% 0% 2 to 5 6 to to to to 100 Source: ACA research on member investments, March plus

19 and startups create the most net jobs Source: Business Dynamic Statistics Briefing: Jobs Created from Business Startups in the United States. Kauffman Foundation, January 2009

20 High-Growth Firms Build Jobs After Startup Source: High-Growth Firms and the Future of the American Economy, Kauffman Foundation, 2010

21 IV. How to set up a universitybased angel network?

22 Setting up a University Angel Network Find a champion at the university Recruit angels to the network Set-up a typical meeting schedule

23 Example of a Typical meeting 30 min education Dinner/drinks 4 company presentation Out by 9pm

24 V. What can NCET2 do to help you set-up your own angel network?

25 NCET2 Approach to Establishing an Angel Group Network Assist in setting up a university angel network Assist in recruiting angels into the network NCET2 Demo Day has angels to include in local groups Assist in establishing deal flow and the evaluation process Assist in developing marketing materials Assist in developing mentoring program Materials provided: Deal screening materials Business plan format Computer mentoring program 10% co-investment of the American-Chinese University Growth Fund (financial investors only, no access to management and IP, companies stay in US)

26 For more/follow-up information about setting up your own university angel group Contact Ria at NCET2

27 The National Council of Entrepreneurial Tech Transfer Kent State University College of Business Administration Creating a University Angel Group to Fund Your Student, Faculty, Researcher and Alumni Startups