start up gathering 2015 - 'driving business forward' tssg & south east bic
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Tuesday 6th October 2015
John Phelan
Supported by: Members:
Evolving Business Angel Landscapeon the island of Ireland
@HaloIreland
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Halo Business Angel Network (HBAN)HBAN is the all-island umbrella group responsible for the promotion of
Business angel investment & the creation of business angel syndicates
HBAN Syndicates & Individual Forums
Boole Syndicate Bloom Equity Irrus Investments SE Syndicate WXNW Syndicate Food Syndicate MedTech Syndicate Other new syndicates under development -
geographical/sectorial www.hban.org
Resources
- Syndicate Guide- Angel & Entrepreneur booklets- Lead Angel Guide- Syndicate Charter
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Angel Investing on the Island
Angel funds€9.5mOt
her Lever-aged funds€20.5m
Total €30M Angel & Other leveraged funds through Angel Networks in Ireland in 2014
€9.5m Angel Funds 48 unique deals in 2014 Average Angel investment per deal €197k Average deal value €625k
www.hban.org
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Sectors invested
Ireland USMobile, Internet and Software 45% 52%Healthcare & Medical devices 20% 21%
10%8%
6%
20%11%
45%
Ireland Sector Breakdown
Consumer ProductsEnergy & UtilitiesFoodHealthcare & Medical DevicesIndustrial ProductsMobile, Internet & Software
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What to look for in an investor?
www.hban.org
Smart Money
How can the investor add value? Strategic guidance Financial Guidance Market Access As a board member Deep industry understanding
Role & timing of the Investor commitment IF a syndicated deal
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What to look for in an investor?
www.hban.org
Previous experience as a business angel
Understand the motivation of the investor
Ensure investor goals are reasonably aligned with other investors
Understand ability of the investor to provide follow on funding
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The Boole Syndicate Founded in 2011 18 members Generalist type of Syndicate – with regional focus 16 deals done, close to €2m invested – with 4 follow-on
rounds ICT MedTech Food Digital Media Consumer products
Average Angel investment €20k upwards
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Why A Syndicate?Syndicate Benefits Share Risk – diversified
portfolio approach
Pooling of economic resources –ability to invest in more or larger deals
Pooling of skills, contacts and experience Share Workload – greater
due diligence
Capable of reviewing more companies – higher quality investment opportunities
Success Correlated with Domain Expertise
Level of involvement
Level of Due diligence
Strong Entrepreneurial Eco-System
Portfolio Approach
Nesta Report 2009 – Siding with the Angels
9% of deals give 10X return 56% deals <1x return!
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How HBAN brings value to the syndicate
Syndicate Charter
Sourcing of companies for syndicate meetings
Companies prepared for pitching - frequently in partnership with Irish BICS
Sample Term Sheet & Supporting Guidance Notes
Online software portal (GUST)
Long-term objective is to have Syndicates self sustaining
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Recent exits
Further resources available www.hban.org/resources HBAN’s YouTube Channel (http://tinyurl.com/HBANYouTube)
Including resources from EBAN Congress 2014 Dublin Twitter @HaloIreland
www.hban.org
Sample deals done
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Tuesday 6th October 2015
Supported by: Members:
HBAN LOCAL CONTACTS:
Michael Maddock: [email protected] Shine: [email protected]
Cormac Coade: [email protected]
@HaloIreland