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Angel Investing: Helping Innovators Bridge

The Valley of Death

NAS-GUIRR and ACA

Workshop

1:00-5:00 PM Linda L. Smith, Moderator

Vice-Chair, Angel Capital Assn.

Member, Sierra Angels Northern Nevada

ANGEL CAPITAL ASSOCIATION Mission: Fuel success of angel groups and accredited investors

and the early-stage companies they support

• 13,000+ investors

• 250+ networks/grps.

• Accredited platforms

• Family offices

• Every state & 5

Canadian provinces

ACA Angel Group Locations

Angels Fund Majority of Startups

Sources: “Angel Investing Market for 2014, Center for Venture Research/ UNH;

NVCA 2015 Yearbook; PwC MoneyTree

• $24.1 billion

• 73,400 deals

• 18,350 seed

• 33,764 early stage

• 20,552 expansion

• 316,000 individuals

Angel Investors

EARLY STAGE FINANCING LIFECYCLE

Discovery

Proof-of

Concept

Product

Design

Product

Development

Commercialization

Idea Pre-seed Seed Expansion Operating Capital

Friends & Family

Angels

Venture Funds

Founder

Institutional Equity (PE)

Debt Financing

Early-Stage

(Non-equity) - Government / Foundations / Economic Dev Grants, etc.

2014 Angel Group Investments by Sector ($)

32.4% 35.7% 34.9%

39.1% 38.3%

30.0% 29.0%

18.9%

22.7% 24.8%

6.3%

12.7%

16.7%

19.6% 15.3% 8.2%

3.9%

3.2%

4.1% 4.2% 5.7%

4.2%

5.7%

3.8% 2.7% 1.0%

1.1%

1.7%

0.9% 1.5%

16.3% 13.3% 18.9%

9.8% 13.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014

Other

Food &Beverages

Industrial

Software

Mobile &Telecom

Healthcare

Internet

WORKSHOP AGENDA

• Overview: Angels, our ecosystem, and working with research-based start-ups -- Jamie Rhodes

• Break (15 mins)

• Angels Panel Discussion: Jim Hunt, Dan Mindus, Angela Jackson

• Break (10 mins)

• Case Study: Investing in a cure for Lupus –Kelly McVearry

• Wrap Up: Linda Smith

ABOUT OUR PRESENTERS

Jamie Rhodes: CEO, National Nano Materials, Inc Co-founder, E3 Angel Network Founder, Central Texas Angel Network Founder, Alliance of Texas Angel Networks

PANELISTS

James (Jim) Hunt Entrepreneur and Investor Blu Venture Investors Cyber and Physical Security Expert

PANELISTS

• Angela Jackson

• Co-Founder & Managing

Director, Portland Seed

Fund

• Director, Portland State

University Business

Accelerator

• Chaired, Angel Oregon

PANELISTS

• Dan Mindus

• Founder & CEO, NextGen

Angels

• Former Investment

Director, CIT GAP Funds

• Top 100 DC Tech Titans

CASE STUDY:

FINDING CURES & TREATMENTS FOR LUPUS

Dr. Kelly McVearry: Managing Partner, The Hypatia Group Angel Investor, Life Science Angels Former Senior Scientific Advisor, Northrop Grumman Information Systems Serves on Campaign Cabinet, Alliance for Lupus Research $100M Venture Philanthropy Fund Served on Maryland Science Center Scientific Advisory Board and Institute of Medicine Genomics Roundtable

HOW DO THE ‘ACCIDENTAL ANGELS’ OF LUPUS

SCAFFOLD INDUSTRY & GOVT?

The Role of Three Forces: The role of misfortune The spectacular role of

network effects…network of human relationships in the ‘life interface’ of an angel

The role of venture philanthropy and impact investing

THE SPECTACULAR FORCE OF NETWORKS:

THE ‘LIFE INTERFACE’ OF THE ANGEL

Simple cell phone and email infrastructure

Social media algorithms pale

Speed, accuracy and results. No patience for bureaucracy.

Open-minded in a way academics and agencies sometimes are not

THE ROLE OF VENTURE PHILANTHROPY AND

IMPACT INVESTING IN LUPUS

Impact of Alliance for Lupus Research https://www.youtube.com/watch?v

=d7LErQph8bE https://www.youtube.com/watch?v=

5qu8GFpH7wc

https://www.youtube.com/watch?v=F6dHrn8Eqag

Impact of Accelerating Medicines Partnership (AMP) https://www.youtube.com/watch?v

=q1-vwwPSBQM

Impact of Life Science Angels http://lifescienceangels.com/portfoli

o/

Wrap-Up

• Thank You NAS-GUIRR and ACA

• ACA Website www.angelcapitalassociation.org

• ACA Annual Summit: May 9-11, 2016 Philadelphia

• Importance of good Public Policies (laws and regulations) on Innovation Ecosystem