Angel Investing Deeper Dive:
Monday, May 16
Monday, May 16
Angels face many challenges when investing in startup ventures. One crucial, but sometimes overlooked, detail is the impact of new funding on the company’s capital structure. Whether funding comes as equity or debt, the savvy investor needs to understand how this round of funding will impact the ultimate outcome for all shareholders. So early stage investors need to be fluent in the structure of cap tables to understand the impact on their potential returns from current and future rounds of funding.
ACA in cooperation with VentureSouth offers entrepreneurs and investors alike a practical education in understanding the details of cap tables through the lifecycle of a startup venture. This workshop will include a combination of presentations, exercises and a case study to illustrate common cap table mathematics a startup and its investors must consider. Among the important topics to be illuminated are the impacts of: valuation, liquidation preferences, anti-dilution terms, convertible notes, and option pools and vesting.
This workshop assumes some familiarity with basic cap tables, typical deal terms and Excel spreadsheets. (Basics of cap tables can be gained through the ACA webinar on the topic available here). Participants are urged to bring a laptop or tablet computer to the workshop to enable participation in the exercises. While this workshop has been presented previously by VentureSouth, this is the initial offering to other members of ACA. Matt Dunbar, Managing Director of Venture South and a Board member of the Angel Capital Association will serve as lead instructor for this workshop.
Tuesday, May 17
Startup companies fail at an alarming rate, so it is not a surprise that angel investing is a high risk asset class. This workshop explores both the risks and rewards of investing in early stage companies. Learn the specifics of major risk categories and gain insights into the due diligence that is necessary to mitigate these risks. A case study exercise gives participants hand-on exposure to uncovering and addressing risks in this asset class.
Tuesday, May 17
9:00a - 12:00p (Registration and coffee available at 8:30am)
Exit strategies may be one of the most misunderstood aspects of angel investing and this workshop serves to shed a light on how angels and their portfolio companies can work together to achieve the most successful exits. Value creation for angel backed companies is different than for lifestyle companies and the primary difference lies in how we craft the exit strategy. This workshop covers the kinds of exits and how to prepare for each. We talk about what the drivers are for high multiples and how companies can build in value from the very beginning of their companies. The workshop finishes with the “Exit Strategy Canvas” that walks participants through the six key elements of exit strategy. The exit strategy canvas helps boards to create a variety of exit scenarios and work towards optimal outcomes for all.