filling that “equity gap” in your investment search! jock milican, equity gap

Jock Millican

Hillington Park Innovation Centre

11th Sept 2014

What Investments Interest Equity Gap? Investments that will make a return (with a clear exit plan)

The people running the business

Opportunities where the investment will facilitate a step change in the business

Intellectual Property

Businesses at or near revenue

Key Questions Business Angels Have What is the market size / competitors

What are the key people like

How are they going to get to market

What is unique about the business/product?

What is the Exit Plan?

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What the Business Angels will want Board Representation

Ownership (20-45%)

Input to the Business

Costs paid by Business

Legal Clauses

Typical Process

Send Business

Plan

• ‘Short BP’ – keep full one for later •Max 4 pages •Will be one of many plans read by all members

Find a Business

Angel

•LINC •Word of mouth •Talk to the Gatekeeper

Plan is Reviewed

•Plan is circulated around members •Remember that each investor could be sent 10-20 each month • If sufficient members show interest then…

Present to Syndicate

•20 mins presentation •20 mins Q&A

Due Diligence

•Discussion amongst investors •Questions by email •Possibly further presentation •Detailed Due Diligence

Investor Decision

• Individual investors decide whether to invest

Legals

• Shareholders Agreements

• Memo & Articles

• etc

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Summary If you get an opportunity to start a business of your

own take it – most exciting and scary thing you will do

Find a business angel to help you through the process

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