1. ANGEL INVESTMENT PRIMER WHAT IS IT AND HOW TO SECURE IT

2. PRESENTER CREDS Elizabeth Crowell @egcrowell www.insideanangel.wordpress.com Earned my stripes during Web 1.0 Owned and operated a profitable, cash-flow positive businesses for 10 years Pipeline Fellow Inaugural class – 2011 Market Lead for Astia Angels NYC CEO of Bpeace

3. BEFORE WE JUMP IN: DEFINE SUCCESS Comfortable size and scale Lifestyle100 jobsInc.’s ListIPO New Market Invent

4. ABBREVIATED OVERVIEW OF EQUITY RAISING Angel $100K- $1m Seed VC $3m+ Early Stage Private Equity $10M+ Growth

5. WHO ARE ANGEL INVESTORS? Accredited investors = high net worth individuals Successful business people Sophisticated but not professional – distinct from VCs Cash – Contacts – Connections No two angels are alike

6. ANGELS VS NETWORKS AngelNetwork IndividualGroup Due Diligence SoloDue Diligence Shared Can move quicklyCan move slower; may have staff and/or process to help deal along Overall: can be nimble and decisive Overall: increased scope of contacts & amount secured but building consensus can take longer

7. FUNDING FUNNEL - ANGEL GROUPS Prescreening 1 in 4 Screen 1 in 3 Due Diligence 1 in 3 Investment 1 in 2 Overall, 1 to 4 out of 100 companies that apply receive funding

8. DEAL TERMS Source: ACA-SVB Confidence Survey – March, 2010

9. POST-INVESTMENT Courting to “marriage” Set communication expectations AND then meet them Balance between substantive and timely vs onerous

10. RESOURCES Associations: Angel Capital Association; Angel Resource Institute Networks: NYAngels, Golden Seeds, Investors Circle, Astia, Launchpad, 37 Angels, Pipeline, Georgetown Angels Twitter angels/VCs to follow: @bradfeld; @gothamgal (Joanne Wilson); @thehatchery Books: What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funded for Billion- Dollar Idea by Brian Cohen & John Kador The Big Enough Company: Creating a Business that Works for You by Adelaide Lancaster & Amy Abrams Links: http://femaleinvestors.plumalley.cohttp://femaleinvestors.plumalley.co - list of female angels and VCs http://ownyourventure.com/equitySim.htmlhttp://ownyourventure.com/equitySim.html - online simulator for equity dilution https://angel.cohttps://angel.co - crowd source funding from accredited investors https://fundersclub.comhttps://fundersclub.com - crowd source funding from accredited investors http://www.yourfutureinbusiness.org/partnerships.cfmhttp://www.yourfutureinbusiness.org/partnerships.cfm - from the Thypin Oltchick Institue for Women Entrepreneurs Start-up Law Firms: Goodwin Procter; Nixon Peabody; Gunderson Dettner; Dentons; Lowenstein

11. THANK YOU Elizabeth Crowell Market Lead, Astia Angels NYC @egcrowell

12. MEET SOME ANGELS Network is solid and ready to help you secure warm leads Business plan or investor deck ready Financials are in order Be passionate and back up your passion with datapoints Do your homework Prepare a term sheet or offering OR develop with a lead investor ATTEND EVENTS & CONTINUE TO GROW YOUR NETWORK

13. OUTSIDE INVESTMENT EVALUATION You & Your Team Scrappy Coachable Skin in the game Stage  Idea  Product  Company  Business Market  B-B: high 100’s  B-C: 100K+ You Market Stage

14. OVERALL TRENDS Upwards of $60billion invested annually between angels and VCs Friends & Family invested between $50-75 billion every year Rise in number of businesses launched + increase in angel investing = Series A crunch It’s cheaper than ever to start a business – $10K

15. BEFORE YOU GO ASKING ANGELS….START-UP CAPITAL + ADVISORS Start-up Capital Bootstrap Friends & family Grants & Business Plan competitions – equity- free! Non-profit training + micro lending Network of Advisors Professional services Industry-related Personal