Pitching For Investment MasterclassDecember 6th 2011

Part 4: Angel InvestmentJohn Waddell (Archangels)

John Waddell

FIOS Genomics LtdFIOS Genomics Ltd

Xi Engineering ConsultantsXi Engineering Consultants

Vital StatisticsYear founded: 1992Number of angels: 100+

Invested by us: £62mTotal w/others: £130mNew deals 2010: 5Follow-ons 2010: 9

Companies seeded: 76Active: 26Failed/Moribund: 37Flotations: 3Profitable Sales: 8 (10 trade sales in total)

Companies that have paid dividends: 3

Historical Trends Emerging

Almost 1:1 track record for active/exited/dividend paying (52%) versus failed/moribund (48%)

Analysis based on number of companies

Current Portfolio

Av investment age: 4.8 yrs

Av investment: £1m New deals per year: 3 Av number of rounds: 4 Av number of angels: 19 5 profitable companies

83% product focused17% service focused

Current Portfolio

Company Years Archangel Total

Touch 8 £3.4m £5.4m

CXR 10 £3.1m £4.6m

VeriSIM 5 £1.0m £3.5m

Arrayjet 7 £2.1m £3.4m

Reactec 7 £1.3m £2.3m

Vitrology 4 £1.2m £2.3m

Lux Innovate 8 £1.7m £2.3m

MGB Biopharma

1 £0.6m £1.8m

Indigo 7 £1.6m £1.8m

Flexitricity 6 £1.4m £1.6m

Bloxx 7 £0.9m £1.6m

Ateeda 3 £0.7m £1.3m

Scalar 7 £0.7m £1.1m

TOTAL - £19.7m £33.0m

Companies with more than £1m total investment

Process

PLAN

ITERATION/ DUE DILIGENCE

CORE INVOLVEMENT

BOARD APPROVAL

PRESENTATION

BOOK BUILD/ SYNDICATION

FOLLOW ONS

Culture

PROCESS NOT PROFIT

UPSIDE IN THE UPSIDE

FUNCTION OF SYNDICATE (NOT VICE

VERSA)

NOT PUBLIC – NOTHING TO FLOAT

DON’T COMPETE

What does “Investor Readiness” mean?

Good deals get backing Good plans sell deals

o Team – Product – Marketo Hard work – Think it through

Clarity of likely returns Realistic defendable assumptions

Investor Returns so Investors Return

DividendsTrade SaleFlotationPE SaleWho said exit?

Joined up Government support Co-Investment Funds/ Groups Supportive, talented community People want to make things happen

Not a fund but....

enquiries@archangelsonline.comhttp://www.archangelsonline.com

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