Hamish Hawthorn ATP Innovations Australian Technology Park Sydney, Australia Angel Investing in Australia

ATP Innovations - Sydney

Australia’s leading technology business incubator 50+ companies in IT, Engineering and Life Sciences Owned by four of Australia’s leading universities Turning innovative ideas into successful companies

We provide business guidance, an entrepreneurial environment, as well as serviced office and laboratory space Performance of our companies: $40 million revenue 450 full time staff $32 million capital raised 37 patents filed

BioPower Converting kinetic energy from waves and tidal currents into electrical power Design based on systems perfected by evolution in nature over millions of years

Who are Angel Investors? What types of businesses do they investing in? The state of the angel investment market How do you approach angel investors? Tips and tricks… Angel Investing – an overview

The investment market is tough – but deals are still being done Angel investors are still active Formal angel investment is a small, but growing part of the landscape Angel Investing

An Angel is a person who invests his/her own money and time in an unlisted growth company as a personal decision with the objective of realising a capital return in the foreseeable future. Who is an Angel?

AAAI is the national industry association representing Australian business angels networks, individual business angel investors and organisations that support the growth of business angel investment in Australia Australian Association of Angel Investors

16,100 active angel in Australia $1.69b invested in over 5,000 companies 35,000 jobs fuelled by angel investment 3,000+ jobs fuelled by angel group investments Co-investment ratio of 1:5 Leveraged investment in Australian innovation over $5b Angels in Australia Source: AAAI National Angel Survey 2008

Information and Communications Technology still dominates Biotechnology and Medical Devices – domain experience? Cleantech a growing area of interest Reflected in the statistics for areas of interest – 40% preference for Cleantech investments (after ICT)? What do they invest in? Source: AAAI National Angel Survey 2008

Individual angels: Seed : 24% Start-up : 41% Early growth and later : 35% Angel Groups: Seed : 10% Start-up : 70% Early growth and later : 20% What stage of investment? Source: AAAI National Angel Survey 2008

Typical amount invested per company/per round is $50k - $250k from a number of Angels Focus includes pre-revenue, early stage companies – but some shifts are evident The key is the growth potential Observations…

The next Google? 10X or more over 5-8 years Average returns in the US*: Overall multiple - 2.6X Average holding period years IRR - 27% Expectations *Kauffman Foundation/ACA

Formal Angel Groups Informal Angel investment The key is being able to pitch your company Make sure there is a match between your company and the investor Kauffmann Foundation: The Angel investment process

AAAI website ( ) Sydney Angels ( ) Hunter Founders Forum ( ) Capital Angels ( How do find Formal Angel Groups?

Not as easy… Connections, introductions, networks FFF(F) Your peers – companies with existing angel investors How do find informal Angels?

Look at what the angel can bring in addition to the money Active board role Rolodex Mentoring/guidance It is not just the money…

Have your pitch ready – polished and slick Make sure there is a fit with your potential investor Think beyond the cheque Be realistic about your valuation (small piece of a big pie) Have your exit strategy defined up front Get familiar with the lingo Tips and tricks

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