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Angel Investing and Agriculture

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					Angel Investing and Agriculture
Badger AgVest, LLC An Investor Alliance for Agriculture James Hanke, Director www.badgeragvest.com

Badger AgVest, LLC

www.badgeragvest.com

Angel Investing and Agriculture
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Angel Investing Overview Badger AgVest Overview Issues and Opportunities

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Badger AgVest, LLC

www.badgeragvest.com

What is Angel Investing?
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SEC Regulation D
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Allows companies to sell unregulated securities to Accredited Investors Defined as individuals with a net worth of $1 million, or annual income of $300k

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Accredited Investors
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Accredited Investors take equity commitments in early-stage companies
Badger AgVest, LLC www.badgeragvest.com

10 – 20 Percent Rule
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Early-Stage investments are high-risk, high-reward investments As a general rule investors should invest no more than 10-20% of their total investment portfolio in angel investing

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Badger AgVest, LLC

www.badgeragvest.com

Financing Life Cycle
Proof of Product Product Manufacturing Concept Design Development Delivery _______________________________________________________________ Idea Pre-Seed Fund Seed Funding Start Up Funding Expansion Discovery

Operating Capital Founder
Family & Friends Venture Funds

Angels Angel Groups

Institutional Equity Loans / Bonds Seed Funds

Badger AgVest, LLC

www.badgeragvest.com

Capital Gap
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Notion that Venture Capitalists fund most early stage ventures is false VC’s and Angels fund similar companies, but at different stages Companies need Angel to fill the capital gap between prototype development and achieving significant sales In the first half of 2006, Angel Investors funded 24,500 early-stage ventures with $12.6 Billion (VC’s funded .3 Billion)
Badger AgVest, LLC www.badgeragvest.com

Expected Rate of Return
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Angels expect an annualized rate of return of 20-25% Results from a combination of high returns and total losses 10 investments equals:
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4 losses 3 break-evens 3 home runs
www.badgeragvest.com

Badger AgVest, LLC

Badger AgVest, LLC
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An Investor Alliance for Agriculture Designed to provide members an opportunity to make angel investments in Wisconsin-based, ag-oriented companies
Tool to rationalize the process of connecting investors to viable Wisconsin investments
Badger AgVest, LLC www.badgeragvest.com

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Badger AgVest Mission
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To promote the development of successful agricultural businesses that directly benefit Wisconsin producers and our rural economy Support innovation and emerging technologies that bring value to agrelated businesses
Badger AgVest, LLC www.badgeragvest.com

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Membership
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70+ members to date Members pay a one-time membership fee Members make their own investment decisions – not all members elect to invest in each opportunity

Badger AgVest, LLC

www.badgeragvest.com

Why Badger AgVest?
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Rationalizes the process of connecting investors to early-stage companies Coordinated deal flow, company analysis Ability to deliver larger traunches of equity Time-saving Ag producers know the ag industry WI ACT 255 Tax Credits
Badger AgVest, LLC www.badgeragvest.com

Opportunities in Agriculture
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Clean Technologies Bio Herd management Organics Alternative Energy

Badger AgVest, LLC

www.badgeragvest.com


				
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posted:9/16/2007
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