Lasse Chor - the man behind Growing Investors - gave an introduction to the doe's and don'ts on angel investors. How do you find the right investor, how do you work together and how do you get them to invest in the first place.

1. Angel Investors 101 (’n’ stuff)…
Aarhus University, November 1st, 2017
Lasse Chor
lassechor@gmail.com
Phone: +45 26 54 41 53

2. Hi! I’m Lasse Chor
@chorDK
Inusect

3. I’ve seen more than
500 investor pitches
in the last 5 years…

4. …some were good

5. …some were bad

6. …some really SUCKED!!!
(big time)

7. …what annoyed me the most

8. The worst ones was because of
own goals and simple mistakes…

9. And THEY
could Easily
have been
avoided!

10. ANGEL INVESTORS
THE PROFILE OF AN ANGEL INVESTOR
RAISING MONEY FROM ANGEL INVESTORS
DO’S AND DON’TS
(1 ON 1 TIME…)

12. TANSQ
Rule no.1

13. What did I just
tell you?

14. TANSQ
THERE ARE NO STUPID
QUESTIONS

16. The Investor Ecosystem in DK
Source: http://inno-overblik.dk

17. Kapitallandskabet

18. The Angel Investor

20. What is a business angel
- Successful entrepreneurs and/or wealthy individuals
- People investing their own (earned/saved) funds
- (Maybe) smart money
- Typical ticket size DKK 250k-5mio.
- Patient money
- Operates on their own and/or in syndicates

21. Business angel pros/cons
pros cons

23. Raising money with
business angels
Do’s and don’ts

24. Before -> During -> After…

25. BEFORE…

26. Start planning early…

27. Know your key metrics from the start
CAC/MRR/LTV/Churn/Net burn
https://a16z.com/2015/08/21/16-metrics/

28. Get the investor involved even though he/she won’t invest
(yet)
Send updates/work with the investor as an advisor

29. What question is easier to answer?
Do you want to invest?
vs.
Do you want to follow us?
(Ceptu)

30. *Get rid of passive shareholders in the early days
*Stay in control…
Make your company investable…

31. DURING…

32. Pitching investors…
- Pitch as many as necessary (NOT as many as possible!)
- Don’t be a pitch tramp…
- Be open about who you are pitching - encourage syndication!
- If you have 15 minutes <> do NOT use more than 15 minutes…

33. “Cold emailing”
vs.
Networking and
introductions

34. Understand
and negotiate
the terms
(Preferences,
syndication,
commitment…)

35. Make clear
rules for the
process
Make urgency
Set deadlines for closing
Stay in control

36. Typical time to decide (1-6 months)
Investors…

38. Valuation!
A huge challenge for both startups and investors
62%: The valuations of the startups are too high
41%: I don’t have time at the moment
40%: I haven't found any interesting investment opportunities
32%: The risk is too high
28%: I have to exit existing investments first
25%: Lack of knowledge to invest
25%: Required capital needed is too high
16%: I have bad experiences from investing in this type of companies
16%: I don’t have enough capital the coming years
12%: I don’t know anyone who I can syndicate with
2014 investor survey showed a potential of 750 M DKK in Region Midtjylland
“Which barriers prevent you from investing more capital in startups?”

39. Pre-money or post-money
Pre-money valuation
Pre-money valuation
The value of the company before
receiving an investment
The value of the company after
receiving an investment.

40. 1. Do your homework and embrace xls
Many ways to go about it – let’s look at 4 of them
2. Rule of thumb
3. Entrepreneur classic
4. The Keystones ”back of an envelope” toolSource:
Keystones

41. 1Valuation
Do your homework
and embrace xls
2Valuation
3Valuation
4Valuation
1
2
3
Do your homework…
• Make a solid spreadsheet, know your numbers, cost/revenue structure
• What’s invested so far + a premium
• Discounted cash flow
Do desk research
• Find public deals, benchmarks in the market, multiples
• Research the investors you are approaching
Ask around…
• Ask investors that are not investing in your company, peers that have
just gone through a similar process or advisers in the community

42. 1Valuation
2Valuation
Rule of thumb from
Silicon Valley
& Finland
3Valuation
4Valuation
Silicon Valley
A start-up is equal to USD 1 million ...end of story..
1. Excellent idea – PowerPoint presentation EUR 100,000
2. Product works – prototype ready EUR 250,000
3. Market functions – customers purchased EUR 500,000
4. Business established – steady purchases EUR 1,200,000
Sweat Networks Equity by Sami Etula, FiBAN, 2015
FiBAN

43. 1Valuation
3Valuation
2Valuation
Entrepreneur
classic
4Valuation
How much capital do we need?1
How much ownership are we prepared to give up?
2
= valuation
Capital needed
Ownership offered
= 5,000,000 post-money
1,000,000
0,2

44. 1Valuation
3Valuation
4Valuation
2Valuation
Keystones
valuation tool
DKK 0 250.000 500.000 2.000.000 4.000.000
Problem/need
in the market
Problem/need in the
market not clear
Solution is
”nice to have”,
not ”need to have”
We document ~10%
savings/benefits
compared to current
solutions
We document ~25-
30% savings/benefits
compared to current
solutions
”Disruptive”
~50% savings/
benefits
Team
Idea-stage, no full
time resources
involved
1 founder/owner
working full time
2 founders/owners
working full time
3 or more with both
tech experience and
commercial business
knowledge
Exit track record:
Has previously
accomplished exits
for investors
Stage
Idea and concept is
described
Technology being
developed
Proof of Technology
e.g. beta level
Proof of Concept
X number of custo-
mers have imple-
mented the solution
Proof of Business
X number of paying
customers
Revenue X DKK
Solid customer
traction
Finance needed
primarily for sales
and marketing
Market position
Company is not
known in the market
place
Solution known by
the first x number of
potential customers
and decision makers
Specific dialogue/
pipeline and
negotiations in the
value chain
Strong customer and
partner relations, an
established part of
the value chain
Market leader in a
specific niche
Documented, strong
traction
Rights
No patent
opportunity
Patent research Patent application Positive outlook for
patent application
Patent granted
Pre-money valuation: 4 + 0,5 + 2 + 2 + 0 = 8,5 M DKK

45. Raise as little as possible to take you to the next step…
Understand the term “value inflection point”

46. AFTER…
- Involve the angel - but you are the captain
- Keep the angel in the loop with ongoing status
updates
- If syndicate: Have one person from the syndicate
as primary contact person
- Use the angel in following funding processes
- Start prepping for next round!

47. Insights from the
deal room…

48. Make an investor
due diligence…
Entrepreneur is the
new rockstar ->
investor is the
new entrepreneur

49. Understand your investor
(fund size and risk profile)

50. Have some skin in the game you
spoiled (student) “wantrapreneur”

51. “SU is just dyslexic spelling for free
Seed Funding”

52. Do not cite Kant unless he is
your largest frickin’ client!

53. Avoid getting a
“maybe”!
Cope it

54. (Especially for male
entrepreneurs…)
Nobody will
invest in a
blind visionary

55. Be realistic

56. If you aren’t - why should the investors then
be excited about your company..

57. Never EVER send
pitch deck before
the presentation…
Send a summary!

58. Finding the perfect match…
Remember it’s about people and chemistry more
than anything else…

59. Final remark…

60. INVESTORS are not THERE to love you - they are
always trying to find the one reason NOT to invest

61. When is the best time to look for
an investor?
When you don’t need the money!

62. Who is the best investor in the world?
Your clients!

63. Tonight: 200 #AARSOME entrepreneurs at Ridehuset for an #AARSOME Townhall event
November 7th: Shareholders’ agreement, vesting and The Hub (Kammeradvokaten/Danske Bank)
November 10th: #AARSOME community breakfast @ Navitas
November 21st: #AARSOME investor office hours @ Navitas
More info: https://facebook.com/aarsome/events

64. THANK YOU...
Lasse Chor
lassechor@gmail.com
Phone: +45 26 54 41 53

65. The perfect pitch deck
(By Danske Bank / The Hub)

66. The Investor Pitch

67. A walk through of:
The Hub Pitch Deck Example…

68. Overview of the 12 slides
Intro slide
Summary/overview
Problem and pain
Solution/demo/secret sauce (painkiller)
Business model
Customer/market/go-to market
Competition
Milestones
Team
Financials/metrics
The ask/opportunity/why invest
Summary

69. HappyCamper
Find your next guest
Investor Presentation May 2016

70. Founded in 2013, HappyCamper is an online
platform facilitating the rental of privately owned
holiday campers.
About HappyCamper
Since start-up HappyCamper has achieved more than 300%
revenue growth year-on-year.
300% growth
HappyCamper offers 42,000+ holiday campers to rent in 22+
countries and the site is available in 5 languages and 9
currencies.
22 countries
HappyCamper uses a subscription advertising model similar
to HomeAway - where holiday home owners pay a recurring
fee to advertise
Subscription advertising model

71. Problem: Camper owners don’t know how to find rental guests
Camper rental is relatively new, and camper owners are daunted by the challenges
of finding rental guests, advertising and managing a schedule
1
2
3
Camper owners do not wish to spend time promoting their camper
Vacationers are not always aware of the opportunity to rent a camper, advertising
is necessary to make them aware of this option

72. Show the problem…
Tell a story....

74. Solution

75. Each Subscription includes
1. Listing on HappyCamper with 24 pictures and property
management tools.
2. You own HappyCamper .com domain.
3. Personal telephone number for receiving guests
enquiries. Call tracking, SMS alerts.
4. Facebook business page for your camper.
5. Social marketing tools to reach and promote offers to
previous guests / network.
6. Google Advertising campaign in 5 languages worth
DKK75 to kick-start guest traffic.
7. Unique SEM tool for camper owners to boost their
advert.
Product offering: Visibility, Promotion, Access
HappyCamper.com

76. HappyCamper Business Model
The business model has already been validated by HomeAway
Private Camper
Owners
Camper owners pay a
subscription of DKK300
per month or DKK2200
per year
Holiday rental
guests
Guest enquiries are sent
to owners by SR
messaging system (with
email and sms alerts)
HappyCamper.com Holiday rental guests
have +42.000 campers to
choose from
Book online for Agency
Partners and send
enquiries to private
owners

77. Huge addressable market
• Self-catered holidays are a high growth travel
segment.
• Renting a camper is 60% less expensive than a
hotel room and offers easier access to outdoor
activities and the freedom to change location.
• 21m campers in US and Europe alone.
o About 6m of those are available for third part
rental - and increasing
• DKK200 million in yearly booking revenue in the
US and Europe alone.
The typical customer – intro package
A camper owner who is using the camper for her
own holiday but can be tempted to earn extra
income with minimal effort
The typical customer – full package
Already renting out camper and fed up with
difficulties of advertising and impractical booking-
management
Customer and Market Overview
60%
Less expensive
21 million
Campers in the US and EU

78. Exposure
Extensive marketing
Listing only
HappyCamper is the only
player providing extensive
marketing at a reasonable
price
Price
>10% of rental income <10% of rental income
HappyCamper
Competitors
Why we are different
HC

79. ✓ Markets have received
HappyCamper with great
enthusiasm - similar to
original Scandinavian
markets
2013
1st version launched
Our first market launch was
well received with 500 beta
customers
2014
2 partners added
Key partners provide access
to key customer segments
✓ SpejderSport agreement
on in-store advertising
targeting outdoors
segment
✓ Interrail agreement
offering “train and
camper” package deal
5 new markets added
Roll out in southern and eastern Europe
✓ Italy
✓ Greece
✓ Spain
✓ Poland
✓ Latvia
Mobile app launch
Allowing camper owners to
easily access their schedule
Growth in new markets
The indications are that
2017 will provide high
growth in new markets
2015 2016 2017
Major milestones and future roadmap

80. George Nielsen
CEO & Co-founder
Business development and
partnerships.
Serial entrepreneur, consulting
experience working with EU
projects, teacher at DTU, and
football player.
MSc. Business Development.
Patrick Olson
COO & Co-founder
Marketing and product vision.
Has been involved in more than
15 startups and 5 successful
exits.
Executive MBA from CBS.
Svend Jensen
CTO
Product development and
team lead.
More than 8 years experience
working as a developer in
areas such as betting and data
security.
MSc. IT from ITU.
Philippe Hansen
Fullstack Developer
Hardcore developer.
Full stack developer with more
than 8 years of experience
developing cross platform
games.
MSc. IT from ITU.
Meet our team

81. 2013 2014 2015 2016e
Revenue
Variable costs
Contribution margin
Key fixed costs
Sales, marketing, administration
EBITDA
Liquity
Financial overview / metrics

83. We are looking for DKK1,200,000 for 20% of
HappyCamper to take us to the next level
• Spending DKK600,000 on building our own advertising engine
• Spending DKK600,000 to break into key Asian markets
We are especially interested in an investor who understands the Asian
market and has contacts there
Investment opportunity

84. ✉ info@happycamper.com
Danneskiold-Samsøes Allé 41
1434
Copenhagen
Denmark
Get in touchJoin us today
www.happycamper.com
HappyCamper

85. Opening (handshake or elevator)
P
I
T
C
H
B
O
D
Y
… so that’s why (conclusion)