lets get real about angel investing - rvc angel capital summit keynote by seth levine

Lets Get Real AboutAngel Investing

Seth Levine

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#2016ACS@sether

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US Angel Funding Trends

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*Estimated

*

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Colorado Seed Funding Trends

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Denver vs. Boulder

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602 Total CO deals since 2000

173 Seed X Angel

Average Size of Angel + Seed + Deals: $748,145

What stage(s): Angel + seed + convertible

Historical Investing in CO

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Seed Stage in CO

~

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FG Angels

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FG Angels# of Deals per Month

Source: FG Angel Data

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FG Angels Review★ Number of investments: 66★ Average syndicate investment: $289K★ Largest syndicate investment: $785k★ Total number of syndicate investors: 582★ Total number syndicate investments: 3,744

Source: FG Angel Data

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FG Angels Review★ Average # of deals participated in: 16★ Most common # of deals participated in:

59★ # of investors who have participated in at

least half of FG Angels deals: 25★ Most active syndicate member investment

total: $1,097,112 in 63 deals

Source: FG Angel Data

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FG Angels Review★ Total $’s raised through FG Angels: $16.49M★ Avg debt cap: $4.96M★ Avg valuation $4.7M★ % of investments with a female co-founder:

~25%

Source: FG Angel Data

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FG Angels Goals:✓ Understand AngelList and Syndicates

✓ Experiment with seed investments outside of FG themes

✓ Extend our network

✓ Generate economic returns

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✓ Reinforced that Angel investing is a lot about gut (more than analysis)

✓ Ability to move quickly was critical

✓ Most Angels are unorganized and followers

✓ Many deals fail -> diversification is important

✓ Typical angels approach the market completely wrong

FG AngelsOutcome | Observations

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History of Angel Investing in Colorado

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As an ecosystem we can do better

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Too scatteredToo much process

Too many gate keepersWe’re not putting entrepreneurs

first

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More transparencyBe visible

Be authenticAngel’s mentoring Angel’s

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Don’t over-educate$10K is not a lot of money

Dedicate capital

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DiversifyHave Fun

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You are not the market

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We are especially bad at supporting women and diversity

in Technology and Entrepreneurship

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This deck is on SlideShare and can be viewed at:bit.ly/sethangelco

Questions?seth@sethlevine.com

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• This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy.

• This material is not to be reproduced in whole or in part or used for any purpose and is to be treated as strictly confidential and is not to be disclosed directly or indirectly to any party other than the recipient.

• This document may contain forward-looking statements and projections that are based on our current beliefs and assumptions and on information currently available that we believe to be reasonable. However, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements. Past performance is not a reliable indicator of future results.

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