Presentation to be given by Gerard Buckley to Cohort 4 at Incubes Accelerator on Wednesday July 31.

1. Accessing Capital From an Angel
Investor Network
Your First Professional Investment
Who, What, When, Where and How?

2. Agenda
• 90 Second Company Elevator Pitch
• Who is an Angel Investor
• Angel Network in Canada
• NACO 2012 Survey
• Halo Report – Q 1 - 2013
• Angel Investing is a changing
• Maple Leaf Angels
• The Benefits for Entrepreneurs
• Q & A

3. MLA

4. Who is an Angel Investor
• A person prepared to invest money their money
• A person who can add value to the company
• An accredited investor as defined by OSC
• A member of an angel network
• The majority of angel investment in Canada is
completed by individuals >85%
• Estimate of Cdn Angel Investment is 916mm in
approx 1500 companies

6. Angel Network’s in Canada
• NACO – National Angel Capital Organization
• 32 Angel Groups in Canada
• They have collectively about 1500 investors
• Three large groups accounted for 58%
• The majority have fewer than 50 members
• 50% of groups set up since 2008
• Vast majority do volunteer due diligence
• 13 Angel Groups in Ontario

7. National Survey of Canadian Angel
Groups Investment Activity 2012
• 139 Investments in 2012 totaling 40.5 million, an
increase from 2011 of 134 investments and a
decrease in investment from 82.4M
• Average investment is $314k down fr $614k
• 50% of angel groups made over 6 investments in
2012, an increase of 20% over 2011
• 82% - Ont & Que, 16% West, 2% Atlantic
• ICT (54%), Life Sciences (23%), Clean Tech (10%)

8. Angel Resource Institute – Halo Report – Q1 - 2013
• Median Angel Round Size trends up to $680K from $650K
• Early Stage Pre-Money Valuations remain stable at $2.5M
• 81% of deals occur in angel groups’ home states
• 75% of Angel Deals are Syndicated
• Median Round Size $1.5M up from $1.44M when co-invested
• Share of Deals by Sector - Internet 36.8%, Healthcare
18.7%, Mobile & Telecom 16.6%, Software (non-
Internet/mobile) 6.2%

9. Angel Group Benefits
• Qualified Opportunities
• Opportunity referral
• Increased Capital Diversification
• Great Valuation and Favourable Terms
• Networking
• Portfolio company mentoring or engagement
• Shared Due-Diligence
• Advisory Board and BOD Roles

10. Traditional Angel Network is
Changing
• Currently Southern Ontario Angel Investment
community is fragmented with 13 groups
• Government programs ( IAF, MaRS, OCE, IBI)
• Online - Angel List, The Funded, Gust
• Y Combinator, Tech Stars, 500 Start-ups
• Incubators & Accelerator funds
• Crowd funding such as kickstarter.com and equity
crowd funding will follow
• Super Angels & Micro-VC’s

12. Maple Leaf Angels Corporation
• Toronto Bay Street based and in existence since 2007
• MLA has invested in 22 companies since inception in 2007 for
$9,600,000
• Registered with the OSC as a Exempt Market Dealer
• Currently 45 members
• MLA conducted a strategic renewal in Nov 2011 with a new
business plan released in January 2012 and a new BOD
elected March 2012
• I became Chairperson, Board of Directors, Jan 2013

14. Entrepreneur Benefits
• Large capital source
• Broad pool of Knowledge & Contacts
• Efficient Process
• Capital Connections
• In many provinces there is investor tax credit
• Leverage sources of funding (IAF, IBI, BDC)

15. Equity Capital Life Cycle
Cash flow
Salesand
profit
Introduction Growth Maturity Decline
Time
R & D Pre-Seed
& Seed
Start-Up
Sales
Round 1 Round 2
Grants
/ Love
Money
$
Angel
$
VC $ VC $
Exit
Angel
$
Concept and
product
development
Profit

16. What Angels Look For
• High anticipated growth rate
• Experienced management team
• Sustainable competitive advantage
• Barriers to entry
• Clear strategy for commercialization
• Proof of concept or enterprise level validation
• Business model anchored in Reality
• Investor exit strategy

17. Five types of Angel Investors
1. The Coach Angel Investor
2. The Do’er Angel Investor
3. The CEO of a Public Company Angel Investor
4. The Spectator Angel Investor
5. The Boss Angel Investor

18. Three factors that appear to
impact investor outcome
• Due diligence time: More hours of due diligence
positively related to greater returns
• Experience: An angel investor's expertise in the
industry of the venture being invested
• Participation: Angel Investors that interacted with
their portfolio companies at least a couple of times
per month mentoring, coaching, providing leads and
monitoring performance experienced greater
returns.

19. The Application Process
• Start with www.mapleleafangels.com
• There is a full education section for
entrepreneurs
• You apply using www.gust.com
• Selection Committee
• Monthly Member Meetings
• Due Diligence
• Term Sheet

20. Target Investee Companies
• Companies who are in seed and early
stage, two for each meeting if the quality can
be found
• In technology, provided they are backed by a
member who is willing to sponsor
• Great management
team, valuation, technology .......

21. Selection Criteria
• The stage, quality of the management
team, valuation and technology of companies are
more important than the sector criteria
• Quality is more important than quantity
• The best of the best should only present and the
number of companies presenting should be limited
to one or two, introduced by someone who is willing
to sponsor or lead the investment and due diligence
process

22. Selection Criteria
• Select the very best in seed and early stage
• Seed investment amounts should be from $250k to
$500K and early stage investments should be from
$350k to $1,500K
• Deal flow of members – both group investments and
private or small group investments should be tracked
and reported on, with clear communication on which
investments went through MLA’s group due diligence

23. Future Topics
1. Bootstrapping a Company & Exec Summary
2. Preparing a Pitch for Investors
3. Terms to expect from an Investors Term
Sheet
4. Accessing Capital from a Angel Network
5. Forming an Advisory Board
6. Pros of Cons of accessing Venture Capital too
early & some of the pitfalls to avoid

24. Gerard Buckley, BBA, FICB, ICD.D
President and CEO
Jaguar Capital Inc.
(C) 416-884-9522
(W) 416-646-6789
g.buckley@jaguarcapital.ca
www.jaguarcapital.ca
@jaguarcapital
@gerardbuckley