filling that “equity gap” in your investment search! jock milican, equity gap
DESCRIPTION
Equity Gap provide an overview of the types of companies they invest in and where they have invested recentlyTRANSCRIPT
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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