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Investment criteria to consider when applying for angel funding.

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Page 1: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

I n v e s t m e n t C r i t e r i a

Page 2: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

Angel investors are wealthy individuals who invest in high-risk, early-stage ventures by reserving a portion of their investment

portfolios to provide emerging companies with seed and startupcapital through direct, private investments. Their goal is to

achieve higher returns than the typical public markets provide. Most Angels are active investors - in other words, they contribute their time and experience, as well as offer

introductions to valuable contacts essential to the company's success.

Who Are Angel Investors?

Page 3: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

• Is your team experienced, driven, coachable, and willing to cede some control and decision-making authority to outside investors?

Management Team

Target Customer

• Do you have an identifiable market segment to target?

• Is there a demonstrable and significant demand for your proposed solution?

Page 4: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

• Is the projected spending by customers in your product category large and growing?

• Can this be a $100 million market?

Market Size

Competition• Have you identified potential competitors?• Do you understand your company's differentiation points -

your unique sales proposition?• Will true barriers to entry help your company to maintain a

competitive advantage?

Page 5: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

• Have you proven the concept behind your product or technology?• Can this be confirmed with data or by objective experts?• Have you built a comprehensive business plan to commercialize

the technology?

Technology

Protected Intellectual Property• Have you protected your intellectual property?

• Have you performed an exhaustive search to be sure that you are not infringing on patents or trademarks held by others?

Page 6: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

• Do you have a plan to achieve widespread market penetration for your products and services?

• How will you do this as efficiently as possible?• Will you create an internal, direct sales team, or will you rely

on external channel partners?

Sales Strategy

Profit Potential• Can you demonstrate how high margins (+15%) and

consistent cash flow growth will be achieved?

Page 7: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

• Do you require between $50,000 to $500,000 to finance growth activities, including product development, recruiting key staff, launching sales and marketing activity?

Capital Needs

Financial Projections

• Have you developed reasonable financial projections -including an income statement, cash flow and balance sheet and supporting spreadsheets - based on logical, realistic assumptions?

Page 8: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

• Do you have a clear exit strategy that will enable Angel investors to generate a return of at least ten times their initial investment?

Exit Strategy

Business Plan• Have you developed a comprehensive business plan that

articulates your key business strategies for how you will grow your venture?

Page 9: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

If you are still not sure if you are ready for angel investment here are some resources to help:

NAO Investment Ready Quiz

(http://www.nao-ontario.ca/investment-ready-quiz/)

Steve Blank’s Investment Readiness Level Information

(http://steveblank.com/2013/11/25/its-time-to-play-moneyball-the-investment-readiness-level/)

Still Unsure?

Page 10: Investment Criteria

www.mapleleafangels.com | [email protected] | 416.646.6235 | @mapleleafangels

Apply for funding through our website:

Apply for Funding!(https://www.mapleleafangels.com/fundingapplication)

*A one page Executive Summary and a Pitch Deck are required to ensure your application is complete

Ready to Apply?