north venture 360 report overview for angel group managers

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  • 8/14/2019 North Venture 360 Report Overview for Angel Group Managers

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    2008 North Venture Partners, LLC | www.dontgosouth.com | www.northangels.com

    BRINGINGANGELINVESTING

    INTO FOCUS.

  • 8/14/2019 North Venture 360 Report Overview for Angel Group Managers

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    Angel investing isa steep challenge.Dont make it anyharder than italready is.

    1.0

    After forming Angel investment groups to share labor and risk, the challenges

    of early stage investing still havent seemed to disappear.

    Finding innovative new venture investments and then getting a group of

    critically-thinking, high net worth investors to all agree to move forward isnt

    easy, but it certainly can be easier

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    2.0

    North provides services and software to early stage private equity investors

    (Angels). Our goal was to reduce friction in the early stage venture market so

    that the largest possible pool of innovative new companies could grow fasterand create that desirable blend of both economic and social value.

    Most Angel groups are strained under

    the workload that comes with

    investing in a complex and risky

    market. Set your group free byoutsourcing your heavy lifting.

    Far too often Angel groups are so occupied with executing group marketing,

    closing sponsorship sales, driving membership growth, managing investment

    transactions, and coaxing members to volunteer for various tasks, that they

    routinely struggle to find the time to filter through and perform effective due

    diligence on submitted plans.

    If pooling resources into Angel groups can make investing more efficient, why

    stop there?

    By collaborating we can empower innovation together and make Angel

    investing more rewarding for everyone.

    Shouldering All The Weight? We Figured.

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    3.0

    Three years ago North was created by a group of former Virgin executives who

    left the Richard Branson empire to focus on building holistic solutions for the

    early stage investing marketplace. We truly believed that by empowering bothprivate investors and forward-thinking entrepreneurs, we could pave a

    revolutionary new path for fostering tomorrows innovation.

    North is a boutique private equityadvisory firm providing Angel

    investors with world-class duediligence and analysis services.

    We spent nearly a decade researching and working with investors and

    entrepreneurs to find which key factors influence the success of early stage

    ventures, and through our experiences we identified a powerful process to

    apply this knowledge.

    By building a solution that addresses the key friction point that constrains the

    Angel investing market, we believe that we can immediately transform the

    industry in a remarkable way.

    But dont take our word for it, let the research speak for itself.

    An Improved Vision For Angel Investing.

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    A Long Hard Look Pays Off For Everyone.

    4.0

    Deep due diligence is crucial for investing success. Its what guides investor

    decisions, builds trust and confidence, and ultimately determines the overall

    success of the investment. Effective due diligence can be both expensiveand exhausting, but to get investors motivated, nothing less will do.

    Looking at the numbers from the Kauffman research, its no wonder why.

    Comparing investors who spent less

    than the median 20 hours of due

    diligence and investors who spentmore, shows an overall multiple

    difference of 5.9X for those with high

    due diligence compared to only 1.1X

    for those with low due diligence.

    Whether youre an entrepreneur betting your career, or an Angel investor

    betting your capital on an exciting new venture, what type of return on

    investment are you seeking?

    Excerpt taken from Returns to Angel Investors in Groups, a comprehensive study of 539Angel led investments. Robert Wiltbank, Ph.D. and Warren Boeker, Ph. D., 11/2007.

    590% or 110%?

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    5.0

    North provides resources that individual investors or groups could rarely afford.

    If due diligence is the key to preventing losses, and unlocking higher returns;

    Why not leverage a dedicated team of analysts?

    North combines human analysts, a

    collaborative due diligence

    methodology, and data driven software

    tools for scoring, evaluating, andcomparing new venture investments.

    Delivering World-Class Due Diligence.

    The North methodology for evaluating new ventures

    is based upon the combined experience of a pool of

    world class investors and entrepreneurs.

    Our unique collaborative filter based due diligence

    methodology enables constant process improvementbased on input and feedback from seasoned industry

    leaders, investors, and entrepreneurs.

    In the end, we are implementing this filter to evolve

    and improve venture investing for everyone. This

    democratic approach to our methodology enables

    Angel investors to make highly informed decisions

    quickly, and with confidence.

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    6.0

    Conducting market research, background checks, reference calls, and the

    financial modeling that are required to effectively understand a new venture is

    back breaking work. North uses software, systems, and processes to producereliable, high quality due diligence reports quickly and consistently.

    From deconstructing the financials to

    target market analysis; 80 elements of

    each venture are reviewed in detail so

    investors and entrepreneurs can makedecisions based on reliable data, not

    just intuition.

    20+ Pages of Rigorous

    Due Diligence

    Insights & Scoring

    Across 8 Categories

    Comparative Graphing &

    Written Analysis

    Performance Chart &

    Executive Summary

    Up-Close Evaluation; Nothing Less Will Do.

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    7.0

    Utilizing a combined human and database-driven due diligence process, North

    analysts score ventures across 80 elements, providing finely tuned data

    backed analysis and insights across all critical aspects of each venture. Northalso contracts with Lexis Nexis for additional background checking on

    potential issues that could affect the investment decision.

    The North Venture 360 Report cuts

    through the subjective spin of any

    business plan, arming investors withboth human insights and the supportive

    data they need to make a more informed

    go or no go decision.

    Smart Decisions Based On Data, Not Drama.

    Eliminate Risk: Entrepreneurs and investors might not

    like what the report has to say, but everyone should

    realize that neither investors or entrepreneurs are wellserved by spending weeks, or months trying to move a

    venture forward if it is fundamentally flawed.

    Accelerate The Venture: An objective third party

    analysis can either quickly generate meaningful

    conversations with investors, or it can give an

    entrepreneur the direct and honest feedback they need to

    dig in and re-tool their business to put it on the right path.

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    8.0

    Historically the cost of deal screening and due diligence has rested on the

    investors shoulders. Given the most common response entrepreneurs hear is

    No Thanks in the form of a template rejection letter, why would it warrant anyinvestment on behalf of the entrepreneur?

    By enhancing the value an entrepreneurreceives from the application process(20+ page analysis of their ventures

    strengths and weaknesses), investorscan now flip the cost of due diligenceonto the shoulders of the sell side ofthe equation.

    The value of the Venture 360 Report is clear for entrepreneurs, its an insightful

    tool that gives their venture the best possible shot at being considered for

    funding. Worst case, if rejected, the report provides triage of what they needto do to fix their business and make it more investor ready.

    When entrepreneurs compare the Venture 360 Report cost to the expense of

    trade shows, travel, consultant fees, or investment banking fees, the value is

    clear and the decision is uncomplicated.

    Flipping The Cost/Benefit Relationship.

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    10.0

    North covers roughly 80% of all new ventures. While our roster is deep enough

    to cover the most common areas of innovation, we cant provide reports on

    everything under the sun. Venture 360 Reports are completed in 7-10 businessdays and are scheduled on a first come first served basis.

    North provides Venture 360 reports

    across 7 broad markets enabling us to

    cover about 80% of submissions.

    Chances Are Weve Got You Covered.

    Media & Entertainment

    Consumer Products & Services

    Software & IT Services

    Mobile Devices & Applications

    Business Products & Services

    Retail / Distribution

    Sustainable Industries / Energy

    North Market CoverageFor each industry there are various

    economic models, industry standards, and

    consumer behaviors. Each of these unique

    factors is incorporated into the venture

    evaluation. The strength and accuracy of the

    North database of reviewed ventures is

    enhanced by our market segmentation.

    Note: The overall scoring and analysis outputis calibrated to seek the greatest possible

    economic return regardless of market sector.

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    9.0

    Angel groups use North to filter more investments and increase the quality of

    their yield. Minimize risk by working with North for consistent and fast venture

    analysis. North offers Angels a software licensing program that can enable yourteam to access North tools to produce reports at a reduced cost.

    North works closely with Angel groups

    to ensure that were seamlessly

    integrating with their existing venture

    investing process to increase dealthroughput and improve yield.

    Team Up With North Without Missing A Beat.

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    Monthly Submissions Initial Review Secondary Review Due Diligence Investment

    1+ 3

    Overcome resource limitations by

    working with North to quickly createdue diligence analysis reports.

    + 6

    Typical Angel Group Deal Filtering Process:

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    11.0

    North provides confidential Venture 360 Reports for Angel groups, independent

    investors, investment bankers, and entrepreneurs that are looking for objective

    insight and feedback on their venture investments.

    Your Next Move: Email us to request a

    sample Venture 360 Report right now

    by clicking here.

    Then take complimentary test drive:

    Qualifying Angel groups are eligible

    for one free Venture 360 Report.

    We are happy to answer any questions you may have. Email us by clicking on

    the address below, and well set up a time to chat:

    [email protected]

    Heading North Is Easier Than You Think.

    Northern California

    1729 Telegraph Ave.

    Oakland, CA 94612

    Southern California

    4316 Melrose Ave.

    Los Angeles, CA 90029

    Read more about what we do at:

    www.dontgosouth.com