start up gathering 2015 - 'driving business forward' tssg & south east bic

Tuesday 6th October 2015

John Phelan

Supported by: Members:

Evolving Business Angel Landscapeon the island of Ireland

@HaloIreland

Halo Business Angel Network (HBAN)HBAN is the all-island umbrella group responsible for the promotion of

Business angel investment & the creation of business angel syndicates

HBAN Syndicates & Individual Forums

Boole Syndicate Bloom Equity Irrus Investments SE Syndicate WXNW Syndicate Food Syndicate MedTech Syndicate Other new syndicates under development -

geographical/sectorial www.hban.org

Resources

- Syndicate Guide- Angel & Entrepreneur booklets- Lead Angel Guide- Syndicate Charter

Angel Investing on the Island

Angel funds€9.5mOt

her Lever-aged funds€20.5m

Total €30M Angel & Other leveraged funds through Angel Networks in Ireland in 2014

€9.5m Angel Funds 48 unique deals in 2014 Average Angel investment per deal €197k Average deal value €625k

www.hban.org

Sectors invested 

Ireland USMobile, Internet and Software 45% 52%Healthcare & Medical devices 20% 21%

10%8%

6%

20%11%

45%

Ireland Sector Breakdown

Consumer ProductsEnergy & UtilitiesFoodHealthcare & Medical DevicesIndustrial ProductsMobile, Internet & Software

What to look for in an investor?

www.hban.org

Smart Money

How can the investor add value? Strategic guidance Financial Guidance Market Access As a board member Deep industry understanding

Role & timing of the Investor commitment IF a syndicated deal

What to look for in an investor?

www.hban.org

Previous experience as a business angel

Understand the motivation of the investor

Ensure investor goals are reasonably aligned with other investors

Understand ability of the investor to provide follow on funding

The Boole Syndicate Founded in 2011 18 members Generalist type of Syndicate – with regional focus 16 deals done, close to €2m invested – with 4 follow-on

rounds ICT MedTech Food Digital Media Consumer products

Average Angel investment €20k upwards

Why A Syndicate?Syndicate Benefits Share Risk – diversified

portfolio approach

Pooling of economic resources –ability to invest in more or larger deals

Pooling of skills, contacts and experience Share Workload – greater

due diligence

Capable of reviewing more companies – higher quality investment opportunities

Success Correlated with Domain Expertise

Level of involvement

Level of Due diligence

Strong Entrepreneurial Eco-System

Portfolio Approach

Nesta Report 2009 – Siding with the Angels

9% of deals give 10X return 56% deals <1x return!

How HBAN brings value to the syndicate

Syndicate Charter

Sourcing of companies for syndicate meetings

Companies prepared for pitching - frequently in partnership with Irish BICS

Sample Term Sheet & Supporting Guidance Notes

Online software portal (GUST)

Long-term objective is to have Syndicates self sustaining

Recent exits

Further resources available www.hban.org/resources HBAN’s YouTube Channel (http://tinyurl.com/HBANYouTube)

Including resources from EBAN Congress 2014 Dublin Twitter @HaloIreland

www.hban.org

Sample deals done

Tuesday 6th October 2015

Supported by: Members:

HBAN LOCAL CONTACTS:

Michael Maddock: mmaddock@southeastbic.ieAidan Shine: aidans@hban.org

Cormac Coade: cormacc@hban.org

@HaloIreland