Michael Maddock - Getting ready for angel investment

Getting Ready for Angel Investment

How HALO Works!

Welcome

Michael Maddock CEO, South East BIC

South East BIC Supporting Regional Enterprise

Innovative Start-Ups

ExistingSMEs

State Agencies

What:Support the generation and development of new innovative enterprises

Assist existing enterprises to expand and innovate

Complement existing regional organisations of enterprise support

How:By providing high quality specialised business consultancy in collaboration with other local and regional organisations with a Client 1st Approach

SEBIC’s Market

Commercialisation

CEBs

Enterprise Ireland

SEBIC

Local

Concept

National International

Global

SEBIC Services

Concept Development

•Feasibility Studies

•Market Research

•SoundingBoard

Business Planning

•Financial Planning

•Technology & ICT

•Marketing Strategy

Incubation

•Facilities

•Infrastructure

•Support

Networking

•Introduction to financiers

•Business Consultants

•Govt. Agencies

•Entrepreneurs

•Business Angels

EU – Link

•EBN Network

•EU Projects

Michael Maddock

Chief Executive, 35 years business experience, former EuropeanTreasurer Dell Inc, FCMA, FCT; Specialises in Corporate Finance & Strategy, Email: mmaddock@sebic.ie

Aidan ShineAsst. CEO & Co. Secretary; 6 years in Corporate Accounting in Japan and Ireland with Alps; BBS, MBA; Specialises in Finance; Area: Waterford City and Wexford, Email:ashine@sebic.ie

Carole ThurstonBusiness Consultant, 22 yrs in IT in UK and Ireland with Sears, specialist VC and Internet Start-up; Specialises in ITArea: South Tipperary and County Waterford Email:cthurston@sebic.ie

Rosemary WardBusiness Consultant,11 yrs Marketing & Sales experience with Waterford Crystal, btw and eircom. B. Comm (International) UCD;Specialises in Marketing Area:Kilkenny & Carlow, Email:rward@sebic.ie

Denise StonemanAdministration Co-Ordinator,Email:dstoneman@sebic.ie

SEBIC TEAM

Business Angels InterventionsCAPITAL NEEDS

TIME

HIGH RISK

LOW RISK

Business Angels

Formal Venture Capital

IPO

SEED START-UP EARLY GROWTH

SUSTAINED GROWTH

Background to Halo Business Angels • Supported by EI and InterTrade Ireland

• BIC Pilot and Activity to Date

• Website http://www.businessangels.ie

Time Period Number of Deals

Angel Money Raised (Euro)

Total Other Monies

LeveragedPre-2008 10 1,015KCalendar

200813 2,285K

Calendar 2009

18 3,652K

YTD 2010 10 1,975kTotal 51 8,927K 9,805K

Halo Business Angels Partnership• Network managed by Dublin BIC in association with the other Irish

BICs in Cork, Waterford and Galway

• Member of HBAN and EBAN networks

• HBAP has 290+ investors registered nationally

• 51 deals (17 syndicates) completed with €8.9m invested

• Further €9.8m leveraged from public and private sector

• Substantial interest with Venture Capitalists and Advisors

• Continually adding investors and companies

4th Best Angel Network in EBAN in 2009

Halo Business Angels PartnershipBusiness Angel

• Informal private investor with smart money (finance + expertise)

• Willing to invest €25,000 to €250,000

• Willing to share their managerial skills, knowledge and networks

• No sector preference

• Often prefer to invest in their region of residence

• Seeking profit

Siding with Angels – Nesta 2008

• Risky Business• 56% failed to return Capital• 9% 10 times capital• Overall 2.2 invested capital• Money invested 4 years - 22% ROI

Best Practice• Entrepreneurs make best investors• Invest where you have expertise• Some Involvement - not too much• 20 Hours Due Diligence• Syndication - works best• Average - 3 years to fail, 6 years to Success• Average investment £46k for 8%

Some Recent Local Engagements

Local Successes • 7 Deals recently :

Angel Investment €1,025k Enterprise Ireland €650k = €1.6m

• Seedcorn and Bright Ideas Challenge

• Dragon’s Den - 3 of 4 SEBIC Clients got finance !

Looking for Funding ?• Promoters now have an alternative place to go for financing.

• We make it easier to access private equity for your business– By evaluating your plan to make sure the information investors need is there,

– By putting your plan in front of investors

• Who are looking for investment opportunities,

• Who are interested in your particular ………? (technology, sector, location, amount range, stage of development and similar)

– By monitoring and facilitating the exchanges between you and the potential investor.

• Increased pool of private investors available to you.

• Opportunities for you to meet investors.

The Process - Promoter• Submit an Application Form with your Business Plan

• Meeting to evaluate your plan

• We develop an 8-10 line summary with key detail and we:– Contact (some) individual investors directly by telephone/e-mail

– Notify specific investors by e-mail

– Post company summaries on website – www.businessangels.ie

• We also develop more detailed summaries (1 & 4 pages) that are available to interested investors

• We monitor investor interest and deal with questions or issues raised

• We arrange, and facilitate, initial meetings with investors & investor forums

• We keep you advised on investor interest and feedback

In Summary We are Looking For ?• Companies

– Ambitious, growth-orientated

– Clear in what they want to do

– Good promoter / credible management

– Good business plan

• Investors– Who want to invest

– Minimum amount available to invest of €25k (minimum)

– Not looking to buy “a job”

– Need to be able to afford to lose their investment

Register with us now!Call SEBIC 051 356300

How to contact us

South East Business & Innovation Centre Ltd.Unit 1B, Industrial Park,Cork Rd, Waterford.

Tel: (051) 356300

Web: www.sebic.ie