Angel Investment Fund - PowerPoint

Document Sample
Angel Investment Fund - PowerPoint Powered By Docstoc
					Angel Funds & Students
Partner to Create Value
  UND Center for Innovation,
   Dakota Venture Group &
     Valley Angel Fund
UND Center for Innovation
1. Innovation:
• Tech Commercialization
• SBIR/STTR awards
• InnovateND competition
2. Entrepreneurship:
• Early-stage ventures
• Incubators & tech park
3. Private Investment:
• Angel Funds
• Access to capital
   programs
      North Dakota Context
• 47th in population – rural
• Educational Performance is high
• Two research universities – UND & NDSU
• Ag, energy, manufacturing, exports
• Export educated youth and investment
  (profits)
• 1984 – Center for Innovation formed
• Access to capital initiatives since 1987
UND Center for Innovation
Strategic partnerships: (deal flow)
1.   Red River Research Corridor (UND/NDSU)
2.   NDSU Research Park (Share EDA grant)
3.   Dakota Foundation (Entrepreneur Finance)
4.   RAIN Source Capital, St Paul (23 funds)

www.Innovators.net
                           a

•   Source of venture deal flow
•   Innovate ND program launched in 2006-07
•   86 business plans statewide in all industries
•   Angel investors are judges
•   Top 5 receive cash & start up support services
•   Governor sponsored, Center delivered
•   www.InnovateND.com
               Dakota Venture Group

•   Bart & Lynn Holaday -Dakota Foundation
•   Launched Oct 2006 – 5 student managers
•   Now 18 graduate & undergraduate students
•   $300,000 evergreen equity fund
•   Only Student-managed Venture Fund
•   Do it all: Source deals, due diligence, valuations, term sheets, negotiations,
    structure deals, monitor portfolio, exits, syndicate, Anglesoft, etc.

• www.DakotaVentureGroup.com
• 2007 Deal Flow: 55 business plans
• 2007 Portfolio:    3 equity investments
                     1 seed loan
  2 regional ventures, 2 student ventures
• Evergreen concept - gains/losses recycled
• Harvest Fund, LLC – for profit in process
DVG Portfolio:
• WineStandard.com: online retailer (student)
  leveraged with entrepreneur loan, 2nd round angel investor

• Ntractive: web-based SBM SaaS software
  two DVG members became lead staff

• Simple Furniture: eco-friendly furniture
• Club Express: bus shuttle service (student)
Grow Talent, Experiential learning
• Center - Entrepreneur Finance Internship
• Ruvelson RAIN Maker Fellow
• Angel Internships (5)
• Manage CONAC Portfolio
• Advisors: 6
• Sponsors help fund operations
     Valley Angel Investment
              Fund
•   31 accredited investors: $1.3 M
•   11 out of town alumni
•   Member-managed
•   Volunteers (No 2-3% fee); 20% carry
•   Meet 6 times per year
•   Tied to UND Center for Innovation
    Investing Guidelines
•   Seed, early to mid-stage
•   Located where investor can monitor
•   Due Diligence
•   Key Leadership: integrity, transparency, coachable
•   Venture Valuation – reasonable
•   Scalable in larger market: 10-30X return
•   Plausible exit strategy (IPO not likely)
•   No more than 10% in any one investment
           Valley Angels
Results in Year One (2007)

• 4 investments: $275 K = $5 M (~20:1)
• Yield Rate: 4 of 18 =22%, 4 in DD
• $50 K - $150 K per deal + side-by-side
Valley Angels
•   Side-by-side investments & syndication
•   RAIN Source Capital is a partner/advisor
•   24 funds in 6 states ($20+ M, 800 angels)
•   4 in North Dakota, 3 nearby in Minnesota

• Center staff - field agent
• Prepare Entrepreneurs - coaching
     PPT is venture pitch, not product pitch
    Valley Angel Internships
• Student interns work closely with angels
• Due Diligence, Valuations, Monitor…
• Network with other angel funds
• Enhance syndication between funds
• 5 Interns: Grand Forks, Fargo, Alexandria,
  Minot, and Bismarck (2 more in 2008)
• www.ValleyAngelFund.com
     Valley Angels & Students

•   Students step up to plate – performance
•   Angels step up to plate – example
•   Due Diligence – high level
•   Entrepreneurs recruit talent
•   Syndication easier through angel network
•   Send students to educational seminars
•   Great experiment – better than expected
         Summary
• Center – entrepreneur deal flow
• Angel Funds – important source of equity
  (20+ deals for each VC deal, 20:1 leverage)
• Students: experiential learning in private
  equity
• Both perform at higher level together
    Contact Info
Bruce Gjovig, Entrepreneur Coach
Center for Innovation
Bruce@Innovators.net
701-777-3134

Tom Kenville, Chair
Valley Angel Investment Fund
Tom@tlobalweb.com
218-779-9950

Lee Groeschl, Angel Field Agent
Center for Innovation
Lee@Innovators.net
701-777-6511

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:62
posted:12/13/2010
language:English
pages:18
Description: Angel Investment Fund document sample