Angel Investing Overview Half Day Workshop

Presentation yesterday at Kellog School of Management’s Coral Gables campus by Troy Knauss of Angel Resource Institute, sponsored by Accelerated Growth Partners, Kauffman Foundation and Greenberg Taurig. Angel investments are typically mid-six figure series A rounds in businesses with a low seven figure valuation. 60% of angel investors have a $1M – $2½M net worth and are looking to invest 10% or less of that across a dozen start-ups, so funding a round often requires syndicating across multiple angel funds or networks. Angels are significantly more prevalent than VCs, so most angel funded business are sold without going on to VC funding or an IPO. Angel portfolios have significant risk and volatility, but with adequate diversification a 20% return is achievable, though funds may be locked up for 3-10 years. Angel funding in the south-east US is less available, meaning investors can negotiate more restrictive terms, but less capital also puts funded businesses at a disadvantage against competitors from better funded regions. Topics covered included due diligence, term sheets, valuations and board involvement.

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