1. Investor Briefing Series: Ways Angel Investor make a Return on their Investment

2. 3/15/06 Ways an Investor Gets a Return on their Investment. Network of Business Angels & Investors Welcome to our Investor Briefing Series  Intro  Set the Stage  Legal aspects of the transactions  Valuation critical at every stage  Merger or Acquisition  Public Market Liquidity Small Cap and Traditional

3. 3/15/06 Ways an Investor Gets a Return on their Investment. Network of Business Angels & Investors Commitment to Education  Best way to Create a Thriving Angel Community Origin of ezine  “how to be an angel investor” National statistics on Angel Investor activity  Avg investment $40K, with small group at $250K  Avg deals considered 15, 2-3 receive investment  66% latency  #1 factor, not availability of capital, but knowledge and comfort with the process

4. 3/15/06 Ways an Investor Gets a Return on their Investment. Network of Business Angels & Investors Active Angel Investor is….  An Exec with a Check Take an executive role in the company Participates through salary, profit sharing as the company builds Benefits from exit and liquidity event as a share holder  Tax Implications depends on structure LLC, or Sub S pass through specific tax forms C Corp losses, gains held with the company

5. 3/15/06 Ways an Investor Gets a Return on their Investment. Network of Business Angels & Investors Passive Angel investor may have…  A board seat  Representative of group that is active or has board seat  May benefit along way with dividends  Main focus is on building value of the company to maximize return at liquidity

6. 3/15/06 Ways an Investor Gets a Return on their Investment. Network of Business Angels & Investors Buying and Selling Equity  Regulated business  Legal transaction Documents to establish rights and expectations Sterling Hawkins, Marshall Lueder  Getting the most Value Many factors impact the value of the company Charles Wilkinson, Wilkinson & Callender

7. 3/15/06 Ways an Investor Gets a Return on their Investment. Network of Business Angels & Investors Reaching Liquidity  Acquisition Market Strong and growing Funds for companies to buy companies Private Equity Funds Greg DeFoor, DeFoor Services  Public Market Options Private Investment into Public Entities Small Cap IPO options Joel Arberman, Public Financial Services, LLC.