Founded by:

Angel Mentoring: Best Practices Brandon Felkins Mike Schaller Allan May Marianne Hudson

Scope

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1. Why Angels should care about mentoring 2. Snapshot of current and best mentoring practices 3. Discussion and next steps

Agenda

Scope

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“Mentorship refers to a developmental relationship between a more experienced individual and a less experienced individual protégé.”

Definition

For this discussion… •  Pre-funding •  Group perspective – fit the criteria •  Not limited to a specific format

Efforts Thus Far…

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•  Mid America Angel Network •  Seed Step Angels •  Ariel Savannah Angel Partners •  Seed Capital Fund of CNY •  Band of Angels •  Life Science Angels •  Golden Seeds Boston •  Sand Hill Angels

•  Hub Angels •  Tech Coast Angels •  Golden Seeds NY •  Blue Tree Angels •  Common Angels •  Sierra Angels •  Frontier Angel Fund

Interviewed 15 Angel Groups Across the Country

•  Motivation of group •  Structure of program •  Screening entrepreneurs •  Matching entrepreneurs and

mentors •  Training for mentors •  Metrics being measured •  Outcome of effort •  Lessons learned

Efforts Thus Far…

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Examining Key Areas

Angels Can Be Great Mentors

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ANGELS

Knowledge

Motivation

Experience

Motivation

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OR

Why Should Angels Care About Mentoring

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–  Deal flow –  Altruism –  Group camaraderie –  Branding –  ROI –  Attract new members –  Member training –  Pulse on industry

–  Time Consuming –  Expensive –  Hinder deal flow? –  Branding

3 Structures for Mentoring

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1 on 1 Single Mentoring

Event

Outside Collaboration

•  Sand Hill Angels •  Hub Angels •  Tech Coast Angels •  Golden Seeds NY •  Blue Tree Angels

•  Life Science Angels •  Band of Angels •  Golden Seeds Boston

• Mid America Angel Network • Seed Step Angels • Ariel Savannah Angel Partners • Seed Capital Fund of CNY • Tech Coast Angels

#1 #2 #3

#1: 1 on 1 Mentoring Most angels have done it

•  Often informal •  Often independent from the group •  Usually altruistic

Most angels have same issues •  Time constraints •  Not trained as mentors •  Engagement issues

Suggestions for doing it better •  Identify your motivation •  Make expectations clear •  Add some structure

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#1: 1 on 1 Mentoring

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#2: Mentoring Event

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK / FOLLOW UP

TRAINING

Advantages: •  Low time commitment from

mentors •  Increase visibility to

companies •  Improve group camaraderie

Disadvantages: •  Need point person •  Not long term

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK / FOLLOW UP

TRAINING

Advertise •  Extremely important •  Use local law firms, banks, and

universities •  Begin well ahead of time

(minimum 2 months) •  Example: LSA

#2: Mentoring Event #2: Mentoring Event

#2: Mentoring Event

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#2: Mentoring Event

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK / FOLLOW UP

TRAINING

Screen •  Not critical •  Depends on your capacity •  Focus on the entrepreneur not

the business plan •  Example: Band of Angels

•  Not presented to group before •  Deal fits angel profile •  Seek balance across sectors •  50% acceptance rate

#2: Mentoring Event

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK / FOLLOW UP

TRAINING

Match • Match mentors…

•  by industry •  by challenge faced •  by stage of business

• Ask if the entrepreneurs have specific questions during the application process

#2: Mentoring Event

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK / FOLLOW UP

TRAINING

Training •  Set the expectations on both

sides

•  Be honest but constructive

•  Give at least one tangible thing: •  Introduction to a contact •  Proxy business •  Metrics to use

#2: Mentoring Event

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK / FOLLOW UP

TRAINING

Event Structure • Can be formal or informal

• Allow enough time (min 1 hour) • Typically:

•  Review a slide deck •  Angel feedback •  Questions from entrepreneur

• Be flexible

#2: Mentoring Event

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ADVERTISE

SCREEN

EVENT

MATCH

FEEDBACK/ / FOLLOW UP

TRAINING

Feedback •  Easy to do with online surveys •  Ask right away:

•  Usefulness? •  Likely to pitch at group? •  Length of session?

•  Solicit from mentees and mentors

•  Follow-up?

Sample Questions from LSA •  How did you hear about the event? •  What areas of input were you expecting help on? •  What were some of the most valuable aspects of the event? •  What did you find least valuable about the event? •  Were the mentors encouraging and helpful? •  How would you rate your mentors? •  Did the help you received answer your questions? •  Was the venue and time optimal?

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#3: Collaboration with Outside Organization

Academic Partners •  Example: Seed Capital Fund partners with the

“Student Sandbox” (Syracuse, NY)

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Incubators •  Example: Mid America Angel Network

partners with ECJC (Kansas)

Government funded organizations

•  Example: Seed Step Angels partner with I2E (Oklahoma)

#3: Peer to Peer

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Ariel Savannah Angels and Georgia Southern University •  6 entrepreneurs, 1 facilitator •  6 month duration •  2 x potential investments

#3: Collaboration with Outside Organization

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•  Advantages: •  Requires less management by the angel group •  The organization generally covers the costs •  Tend to be more formalized process

•  Disadvantages: •  They don’t exist everywhere and sometimes require funding (grants) •  Can lead to more complicated scenarios

Best Practices Summary •  Advertise! •  Think about your brand

•  “Don’t want to send the message to top level entrepreneurs that your group accepts B players” - James Geshwiler

•  Set expectations •  “Don’t expect to find the next Google” –Richard Morganstern

•  Mentors training •  Provide honest yet constructive feedback

•  “Critical feedback delivered with compassion is the best” – Ron Weissman

•  Capture feedback right away

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Next Steps ARI wants you…

• …to try out a new mentoring style: •  1 on 1 •  Mentoring Event •  Peer to Peer

• …and share the outcome: •  Feedback •  New deals

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Thank you

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•  Interviewed 15 Angel Groups Across the Country •  Mid America Angel Network, Joel Wiggins, Kansas •  Seed Step Angels, Michael Kindrat-Pratt, Oklahoma •  Ariel Savannah Angel Partners, Ray Wenig, Southeastern USA •  Seed Capital Fund of CNY - Nasir Ali, Central New York •  Band of Angels Ron Weissman, San Fancisco Bay Area, CA •  Life Science Angels, Allan May and Sunil Rao, San Francisco Bay Area, CA •  Golden Seeds Boston, Leticia Richardson, Boston, MA •  Sand Hill Angels, Jim Connor, San Francisco Bay Area, CA •  Hub Angels, David Verrill, Boston MA •  Tech Coast Angels, Richard Morganstern, LA, CA •  Golden Seeds NY, Robert Delman, New York •  Blue Tree Angels, Joe Barron, Pennsylvania •  Sierra Angels, Bob Goff, Reno, NV •  Bill Payne. Las Vegas, NV •  Common Angels, James Geshwiler, Boston, MA