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Wisconsin Science and Technology Symposium

Wisconsin Science and Technology Symposium. Angel Investments July 18, 2008 Pete Marsnik Manager, Chippewa Valley Angel Investors Network, LLC 715-878-9791 cvangels@execpc.com. Chippewa Valley Angel Investors Network, LLC. What is an Angel? High net worth individual

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Wisconsin Science and Technology Symposium

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  1. Wisconsin Science and Technology Symposium Angel Investments July 18, 2008 Pete Marsnik Manager, Chippewa Valley Angel Investors Network, LLC 715-878-9791 cvangels@execpc.com

  2. Chippewa Valley Angel Investors Network, LLC What is an Angel? High net worth individual SEC “Regulation D” Desire to invest in early stage ventures Provide Funding and/or Expertise Put the “smart” in smart money Individual or Network

  3. Chippewa Valley Angel Investors Network, LLC Why Angels? Financing between 3F and Institutional Venture Capital Deals too big $10 million + Typical Angel deals smaller equity investment $100,000 to $ 2 million 2007 – U.S. Angel investments $26 billion up 1.8% from 2006, 2006 10.8% over 2005 12% more ventures, 10% more investors 2007 exits – 61% M/A, 6% IPO, 33% bankrupt

  4. Chippewa Valley Angel Investors Network, LLC Founded in 2003 – currently 17 members Portfolio contains 7 investments $ 3.1 million value of portfolio Typical round $100,000 to $400,000 $1,000 annual dues with Monthly meetings Process Business Plan Screen versus criteria – Stage 1 Presentation – straw poll for Stage 2? Due Diligence – Term Sheet – Negotiations Subscribe – interested members form new LLC Tracking/Additional investment Exit – 3-7 years to harvest

  5. Chippewa Valley Angel Investors Network, LLC Criteria Business Plan Complete and Comprehensive Sufficient Opportunity and Return Venture vs Lifestyle business How will company make money? How will investor make money? Quality Management Team

  6. Chippewa Valley Angel Investors Network, LLC Criteria Proof of Concept Desire for coaching/mentoring Sustainable Competitive Advantage Intellectual Property/Patents Minimum $100,000 equity investment Exit Strategy

  7. Chippewa Valley Angel Investors Network, LLC Key Question 1 What is the Size of the Opportunity? • Product and Market? • Scalable? • High-Multiples Return on Investment?

  8. Chippewa Valley Angel Investors Network, LLC Key Question 2 What is the Quality of Management Team? • Experience? • Skill Sets? • Deficiencies?

  9. Chippewa Valley Angel Investors Network, LLC Key Question 3 What is the Sustainable Competitive Advantage? • Intellectual Property? • First mover? • Barriers to Entry?

  10. Chippewa Valley Angel Investors Network, LLC Key Question 4 What is the Exit Strategy? • How will the angels realize the return? • How soon?

  11. Chippewa Valley Angel Investors Network, LLC Key Question 5 Is it in the Sweet Spot? • Equity Stake sufficient to have influence? • Board Member? • Minimum Dilution?

  12. Manufacturing Advantage The New Yorker

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