9. Angel Conference Model
20-60 companies apply
20-40 investors join LLC
$5500 for each investor
10 weeks of due diligence
Workshops for Angels and Entrepreneurs
Large Final Event
15. Angel Investing Distribution of Returns
60
50
40
Percent of Exits
US: Overall Multiple: 2.6X
UK: Overall Multiple: 2.2X
30
20
10
<1X
1X to 5X
5X to 10X
Exit Multiple
10X to 30X
>30X
16. Distribution of Returns by Venture Investment
60
Hold: 3.0 yrs.
50
$80M
Percent of Total Exits
40
Hold: 3.3 yrs.
Overall Multiple: 2.6X
Avg. Holding Period: 3.5 years
30
$60M
20
$40M
10
$20M
Hold: 4.6 yrs.
Hold: 4.9 yrs.
Hold: 6.0 yrs.
0
< 1X
1X to 5X
Blue bars: % of exits in that Category
Green Bars: $’s returned in that Category
5X to 10X
Exit Multiples
10X to 30X
> 30X
18. As a reminder: Angel Investor Performance Project
More than half fail to return
capital
Wins take longer to exit than
losses
“Asset Class” return of approx
2.6X
10% of exits = 90% of cash
returned
www.AngelResourceInstitute.org
19. Estimated Multiple of AO as a Portfolio
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2006
2007
2008
Multiple by year, if portfolio were cut off after that year
Assumes even investment in every presenting company
Underspecified Terms/Dilution as an imaginary portfolio
2009
2010
2012
AIPP
20. 5 Types of Angel Groups
Angel Networks 98%
Managed Angel
Funds - Founders
Coop
Passive Angel Funds
– Side car funds
Active Angel Funds
– Oregon Angel Fund
Angel Conference
21. Cities with Angel Conferences
Portland ( Since 2003 )
Bend
Corvallis/Eugene ( Since 2009 )
The Gorge
Medford
Seattle ( Since 2012 )
23. Where are they now?
Tracking the Angel Oregon Alumni
Willamette University Angel Fund
24. Median Early Stage Pre-Money Valuation
$2.5M
$1.5M
Median
$3.7M
3rd Quartile
$6.6M
1st Quartile
$0.11M
*Including all rounds with angel groups before Series A
6/2/13
*
25. Robert E Wiltbank, Ph.D.
wiltbank@willamette.edu
www.Willamette.edu/~Wiltbank
26. Angel Investing Distribution of Returns
60
50
40
Percent of Exits
US: Overall Multiple: 2.6X
UK: Overall Multiple: 2.2X
30
20
10
<1X
1X to 5X
5X to 10X
Exit Multiple
10X to 30X
>30X
27. Distribution of Returns by Venture Investment
60
Hold: 3.0 yrs.
50
$80M
Percent of Total Exits
40
Hold: 3.3 yrs.
Overall Multiple: 2.6X
Avg. Holding Period: 3.5 years
30
$60M
20
$40M
10
$20M
Hold: 4.6 yrs.
Hold: 4.9 yrs.
Hold: 6.0 yrs.
0
< 1X
1X to 5X
Blue bars: % of exits in that Category
Green Bars: $’s returned in that Category
5X to 10X
Exit Multiples
10X to 30X
> 30X
28. 60
50
Percent of Exits
40
2X better multiple for
20+ due diligence
30
20
10
<1X
1X to 5X
5X to 10X
Exit Multiple
10X to 30X
>30X
29. 60
50
60% better multiple for deals
related to industry expertise
Percent of Exits
40
30
20
10
<1X
1X to 5X
5X to 10X
Exit Multiple
10X to 30X
>30X
30. Follow-On Investment from Same Angel Investor
60
50
30% of deals had follow on
investments.
Percent of Exits
40
3X better multiple in deals
where the investor did not make
a follow-on investment.
30
20
10
<1X
1X to 5X
5X to 10X
Exit Multiple
10X to 30X
>30X
32. Diminishing Returns to Invested Capital
Private Acquisition Size from ‘96 to ‘06
Only 15%> $50M
6/2/13
33. … But Trending Up at Year End
Median Angel Round Size Reaches Five Quarter High in Q4 2012
$M
$1.50
$1.25M
$950K
$950K
$900K
$850K
$1.00
$500K
$550K
$550K
$620K
$690K
$0.50
$0.00
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
*Angel rounds include angels & angel groups only
*
34. Median Early Stage Pre-Money Valuation Stays the Same in 2012
$2.5M
$1.5M
Median
$3.7M
3rd Quartile
$6.6M
1st Quartile
$0.11M
*Including all rounds with angel groups before Series A
*