Who is BFF with who in the VC world? CB insights tells us who. VC’s & investors overlap #investors #relationships
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Tag: Angel investor
Fueling Startups and Diversity: 9 Reasons to Innovate, Dominate, and be Diverse #NovaScotia
Is Nova Scotia pushing towards an innovation-driven system? Signs are emerging, encouragement to seek international markets, more sandboxes for entrepreneurs, and the new $50 million dollar fund for small to medium sized businesses in Nova Scotia and more diversity!
There are world famous eco systems for startups like China. The central government predicts the surge of money to support private entrepreneurs will generate new growth. The government’s investment in young companies is part of a larger push to reduce the country’s reliance on fixed-asset investment and develop an innovation-driven economy.
In 2013, according to Fortune Magazine, venture capitalist invested $33bn in US – more than 4 times the amount invested in entire European Union. Then, there’s Silicon Valley, $8.67bn in 2013 compared with just $1.44bn in Europe. Creating, and nurturing entrepreneurs through eco systems for startups in Nova Scotia helps push to innovation driven systems.
Then, there is diversity. There are numerous reports, and research that identify enhanced innovation and creativity as benefits that flow from a more diverse workforce. Diverse employees, entrepreneurs, leaders bring fresh perspectives and different types of views. Many countries support diversity and innovation – resulting in well managed diverse teams – that are more productive, creative and more effective than teams that are alike.
In Canada, there are reports of a wealth of skilled and talented people not engaged in the workforce from the immigrant workforce, Canadian born visible minorities, youth, mature workers, persons with disabilities and Aboriginal Peoples. Engaging diversity in Canada’s labour force and recruiting immigration are solutions for recruitment challenges and skills shortages.
Where the Nova Scotia Economy Is Moving the Fastest:
Innovation, Diversity, & Domination
It seems like OneNS is right on the money giving entrepreneurs and others opportunities to innovate and diversity.
The 9 areas of support for startups, and diversity in Nova Scotia are the following:
- Innovation – If you own a small to medium sized business in Nova Scotia there is a new $50-million private equity fund
- Innovation – If you need assistance and are a small to medium sized business owner there are more sandboxes for you. There are more places where you can experiment with new ideas and access mentors, investors and help you hone your skills.
- If you are looking to incubate your startup, there are several sectors working together to expand your startup.
- There are groups working together (students, business networks and community groups) discussing issues – ideas leading to action.
- If you are a startup or student startup, university presidents are working to improve role of institutions as incubators for innovation and entrepreneurship.
- Assistance to expand your startup to Asia.
- Innovation in tidal power or forestry sought for Nova Scotia.
- Partnerships and programs helping youth and newcomers transition in workplaces and feel more included.
- Diversity is one of the private sectors’ national goals.
Year 2015 marks many changes in Nova Scotia. Innovate, Dominate & be Diverse #NovaScotia
The oneNS Coalition builds on the earlier oneNS Commission.
^ 41 % Shift to equal female & male office
Results report shifting an office environment from all male or all female office to an office of equal amount of females and males may help your bottom line and increase productivity up to 41 percent!
Basically, what does this really mean?
This has been compared to a baseball team made up of only catchers….well they could share experiences, equipment, tips and so on, but would they perform well on the field?
So, having more workplace diversity might help with your bottom line. ^ 41 %
Original article:
http://newsoffice.mit.edu/2014/workplace-diversity-can-help-bottom-line-1007
Investing No Longer Depends on White-Male Stereotype report 30 Under 30 VC’s
Investing no longer depends on white-male stereotype reports 30 under 30 VC’s
Investing is not longer depending upon a white-male stereotype even though several Silicon Valley icons still make the list. This year’s 30 under 30 list of VC’s reveal 8 female investors out of 30, along with investors from India and Taiwan, Venezuela and Ukraine.
8 Female Investors out of 30 VC’s
Alex Banayan (Alsop Louie Partners) and Stephanie Weiner (Bain Capital Ventures) both started investing in their teens. Stephanie is a founding member of Dorm Room Fund. Alex is writing a book about his career advising Lady Gaga to the Department of Education.
Female investor First Round Capital’s Cee Cee Cheng, (27 years old) Director of Dorm Room Fund started as a peer-to-peer investing platform that’s backed 60 student startups.
Then there is the most powerful investor in Silicon Valley – he’s 29 years old and the president of Y Combinator that gets 10,000 submission each year. He’s Sam Altman, and his startup, Loopt, sold for $43.4 million!
Ilya Golubivich, is 29 and a managing partner of I2BF Global Ventures that backs companies launching satellites and mining for precious minerals on asteroids.
Blaze Byers is 29 and a general partner at Google Ventures. Chetan Puttagunta is 28, and rose from associate to partner at NEA in just three years.
There is also Nitesh Banta, 28, and Peter Boyce II,at 24 years old that both joined the list for founding Rough Draft Ventures, providing funding up to $25,000 to dozens of student entrepreneurs.
Young investors, more female investors, and immigrant investors represent the changing face of technology and investing!
Read more at:
http://www.forbes.com/30under30/#/venture-capital
Entrepreneurship & Innovation —–Dalhousie venture projects & entrepreneurship
To educate
Entrepreneurship & Innovation
Dalhousie venture projects by students
http://www.youtube.com/watch?v=_1o-5P1yTf8
Anyone can be an entrepreneur. Dalhousie’s New Venture Creation course, taught by Angelo Dossou-Yovo, is designed to expose you to the issues, problems and challenges of creating new ventures and to provide you with the opportunity to explore and develop venture ideas.
Lana & Larder update:Excited to be invited again – to evaluate venture projects by students for the Faculty of Management, Entrepreneurship and innovation.
Location Dalhousie University, Kenneth C. Rowe management building, room 1007, 6100, University Ave., Halifax, Nova Scotia, Canada, B3H4R2
Bachelor of Commerce group Day 1 Wednesday, November 26th, 2h30pm-4hpm
http://www.dal.ca/faculty/management.html
Bachelor of Management group Day 2 Monday, December 1st, 2h30pm-4hpm
18 reasons investors back emerging Canadian companies ($8.8 billion & rising)
‘Investors back industry surging in Canada’
18 reasons why investors, government and foundations back growing marketplace in Canada
1. Foundations and mainstream investors are backing social ventures and making this industry surge.
2. Social ventures almost go side by side a coherent Corporate Social Responsibility (CSR) strategy (please review information below on CSR).
3. Eight point eight billion dollars in investment is focused on Canada’s social venture companies and is expected to hit $30 billion over next decade.
4. The government of Canada is also part of this momentum developing partnerships and exploring social finance tools.
5. The Ontario government has a social enterprise strategy that aims to make the province the top jurisdiction for the sector on the continent.
6. British Columbia has a social innovation council.
7. Quebec has pledged to develop its social economy.
8. The Canadian Task Force on Social Finance recommended that the country’s foundations, which collectively have $36 billion in assets, allocate 10 per cent of their capital in mission-related investing by 2020.
http://sig.uwaterloo.ca/feature/final-report-of-the-canadian-task-force-on-social-finance
9. Recent progress of thesocially responsible investment (SRI) movement provides evidence that the marketplace is developing both social and environmental criteria to supplement traditional financial criteria used to make investment decisions.
10. Market indexes and professional firms provide information to mutual funds, private equity funds, venture capital funds, commercial banks and other financial market investors about a wide range of corporate characteristics, including governance, human resource management, health and safety, environmental protection and community development.
Examples SRI indexes: the Dow Jones Sustainability index, FTSE4 GOOD 100 Index, Jantzi Social Index Canada, Innovest, Calvert CALVIN Social Index and KLD Domini 400 Index.
11. Firms with social citizenship records and a real commitment to corporate responsibility are arguably more sustainable, better managed and, therefore, better long-term investments.
12. Tony Fell, Chair of Royal Bank of Canada Capital Markets, stated, “the ongoing vitality of our communities is both in our long-term business interest and in the interests of a healthy, vibrant country….”
“No enterprise operates in a vacuum.”
13. Global demographic pressures of a global aging population means government will not have extra money to find new solutions, and should look at non-traditional sources of capital, says, Antony Bugg-Levine, New York City-based chief executive Nonprofit Finance Fund and chair Global Impact Investing Network.
14. Younger investors are quickly being drawn into impact investing and providing capital. The MBA programs and post-secondary courses on social finance often are over-subscribed.
15. Sally Osberg, president and chief executive of the Palo Alto, California-based Skoll Foundation, says the industry is exploding, and has invested about $400 million in the past 14 years to almost 100 social businesses around the world.
16. Royal Bank of Canada has put $20 million toward socially responsible investments, while Toronto-Dominion Bank (along with the Ontario government, KPMG and Alterna Savings) back Ontario Catapult Microloan Fund.
17. On January 17, 2013: A new report by the Responsible Investment Association reports that responsible investment (RI) assets in Canada continue to climb, showing growth in virtually every major market segment and outpacing growth of total assets under management.
The Canadian RI Review 2012 shows that assets managed under sustainable and RI guidelines in Canada grew by 16% from June 30, 2010 to December 31, 2011. By comparison, total assets under management grew by 9% same time period.
18. Social ventures being founded in other countries. The U.K. is home to the world’s first social impact bond and is creating several social investment funds. In the U S, both Morgan Stanley and Goldman Sachs expanded to impact investing.
A corporate social responsibility strategy is based on:
integrity
sound values
long-term approach
offers clear business benefits to companies
helps make a positive contribution to society, and
provides the business an opportunity to show their human face.
Corporate social responsibility (CSR) companies usually:
- engage in open dialogue and constructive partnerships
- (with governments at various levels, intergovt., non-governmental organizations, local communities & others);
- recognize and respect local and cultural differences;
- maintain high, consistent global standards and policies; and
- are responsive to local differences and take on specific initiatives.
Canadian companies benefit from CSR activities.
Husky Injection Molding Systems Ltd. expended considerable energy developing and implementing its Purpose and Core Values initiative, which emphasizes people, the environment, the community and ethics. The company reports that this approach has led to governments issuing various permits faster than previously. The firm also reports that a $4.2 million investment in environmental and health and safety programs resulted in estimated savings of $9 million, including fewer injuries and lower absenteeism among employees.
Montréal-born eco-designer Joanna Notkin discovered that most cotton and wool products are finished with chemical processes and that cotton crops use more than 25 percent of the world’s pesticides, which often seep into the water table. Notkin established the home furnishings company LoooLo in an effort to minimize the environmental impacts of the textile industry, one of the world’s worst industrial polluters. LoooLo products receive considerable media attention because they use specially sourced, organically grown or chemical-free, and compostable materials.Why is CSR important?
Many factors and influences, including the following:
- Companies becoming multinational companies and global supply chains. Factors related to human resource management practices, environmental protection, health and safety and others.
- Governments recognize CSR.
- The United Nations, the Organisation for Economic Co-operation and Development and the International Labour Organization have compacts, declarations, guidelines, and principles that outline social norms for acceptable conduct.
- Advances in communications technology, such as the Internet, cellular phones make it easier to track corporate activities and disseminate information. Non-governmental organizations now regularly draw attention through their websites to business practices they view as problematic.
- Consumers and investors show increasing interest to support responsible business practices and want more information on how companies are addressing risks and opportunities related to social and environmental issues.
- Citizens in many countries are making it clear that corporations should meet standards of social and environmental care, no matter where they operate.
- Increasing awareness of the limits of government legislative and regulatory initiatives to effectively capture all the issues that corporate social responsibility addresses.
- Businesses recognize that adopting an effective approach to CSR can reduce risk of business disruptions, open up new opportunities, and enhance brand and company reputation.
Raise $1.5M online Canada, Ontario leads proposed Changes
Ontario leads proposed regulations for raising money online for small business and new rules in Canada
– up to $1.5 M thru registered crowdfunding sites. (proposed by the Ontario Securities Commission).
Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia will also follow the lead and publish (propose?) the Ontario proposal.
(Maximum of $2,500 in single investment & $10,000 per year per investor. )
As crowdfunding rules propose regulations change in Canada – small businesses get opportunities to raise $1.5 M online and Linkedin has crowdfunding platform! http://lnkd.in/dtk6-vv
Mirroring ‘Silicon Valley’ & Moving innovation in Canada
Government of Canada supports Angel Investment & Angel groups
Government of Canada supports Angel Investment & Angel groups
Angel groups are still pretty young in Canada, with 50 % of the angel groups, only around six years old (2008).
It was a time when many took the world finance crisis challenge and turned it into an opportunity. Around 2008, I organized a mission with the Federal government to take select female led companies from Atlantic Canada to receive investment readiness training and angel investment from New York City and Astia.
Astia was founded in Silicon Valley in 1999, a non-profit that propels women’s full participation as entrepreneurs and leaders in high growth businesses. Programs include: access to capital, ensure sustainable high-growth, and develop the executive leadership of the women on the founding team.
David Rose from gust.com was one of the people teaching Canadian based companies how to get investment readiness. David S. Rose is a serial entrepreneur who crossed the aisle and became one of the country’s leading angel investors and then founded Gust filling a major need in the rapidly growing world of early stage investing. David personally raised tens of millions of dollars of capital, names Inc 500 list CEO, country’s fastest growing private companies, and described as a ‘world conquering entrepreneur’ by BusinessWeek.
Since 2008, there’s been a recent hike in angel investment, in part thanks to government programs that match dollars invested by angel investors.
Angel investors and angel funds help propel innovation and Canadian businesses forward. Small business owners are typically the ones looking for angel investment. In Canada, reports state that small businesses result in the most job growth for Canada (small businesses defined as 100 employees or less).
These startups need angel investment to move forward and government agencies continue to put large amounts of effort into angel investments and angel groups in Canada and move innovation forward.
Angel investors and new angel funds continue to increase in Canada and fuel Canada’s innovation!
In general, the public is starting to understand angel investing a bit better – with the trend of angel investing on television many are beginning to understand the importance of angel investing. There are shows like The Dragon’s Den, SharkTank and ThePitch. This all helps create awareness for Canada’s angel investment industry.
There are many funds supported by the government of Canada for entrepreneurs.
http://www.nrc-cnrc.gc.ca/eng/irap/index.html
The Industrial Research Assistance Program (IRAP) provides innovation and funding services customized to specific needs to accelerate Canadian business growth through innovation and technology.
http://actionplan.gc.ca/en/initiative-section/business-innovation
The Business Innovation fund is a federal initiative that may match every $1 invested by an angel investor with 50 cents of federal funding.
MaRS Discovery District is an accelerator located in Toronto spurring on more VC and angel investment in startups. There’s Hyperdrive, INcubes & NACO, (representing 28 angel groups & 1,500 investors across Canada). In Ontario, alone, there are 13 angel groups.
NACO reported the number of angel investments rose 50 per cent in 2011 from 2010. The value of angel investments jumped 134 per cent in 2011 from 2010. The average angel investment deal was worth $614,000 in 2011, up from $442,000 in 2010.
Another example of the government of Canada providing investment, in part, is Chip Care, a healthcare Canadian company that closed phase II of financing with an investment of $2.05 M to support development & commercialization.
Venture Capital Action Plan
Boris Wertz is a general partner at Version One Ventures since 2013. A micro fund focused on early stage consumer, Internet, e-commerce, SaaS & mobile companies with above target $19 million with the help of BDC Venture Capital and others.
It may be “one of the top 10 seed funds in North America,” & only celebrating its 1st birthday!
‘”I continue to be surprised at the level of support for Canadian entrepreneurs with the government programs. There are conversations that need to be had about the efficacy of the direct versus indirect investing and services model. And it seems like this is happening at many levels from the Venture Capital Action Plan.” said Boris Wertz.’
http://www.pehub.com/canada/2014/01/27/super-angel-boris-wertzs-seed-fund-makes-quick-ascent-to-north-americas-top-10/
In Vancouver, there is GrowLab, a startup accelerator
Is Canada mirroring ‘Silicon Valleys’ answer for innovation? Angel investment and angel funds continue to grow & move innovation with the government of Canada’s blessings & support.
Top 11 Tips – A ‘Cheque’ List for Angel Investment #angelinvestor
12 March 2013 by Lana Larder
Angel investors are wealthy individuals and Angel groups that invest in seed, start up and established companies. These investments can be riskier, and Angels want to achieve higher returns. (for example start ups are riskier than established companies)
Are you investment ready?
A ‘Cheque’ List for Start ups
- Management Team
- Target Customer
- Market Size
- Competition
- Technology
- Intellectual Property
- Sales Strategy
- Profit Potential
- Capital Needs
- Exit Strategy
- Business Plan
There are many things angel investors may want to know before they invest in you or your company. The following are the top 11 tips for startups that seek angel investment:
- Is your Management TEAM driven? What’s the ‘jockey and the horse’ like? Are they experienced? Are they coachable, and willing to let go of some of their control to outside investors?
- Do you know your Target Customer? Have you identified your market segment? Is there a significant demand for your solution?
- What is your Market Size? Are your projected revenues large and growing?
- Have you identified your potential Competitors? Do you understand your company’s differentiation points? Will true barriers to entry help you maintain a competitive advantage?
Nike differentiates its brand. The company has relationships with top key athletes and designs performance focused products.
Nike is an example of one of the many high performers found in most industries.
Over time, a company’s differentiation and execution matter far more than performance.
Research reports four times as much that a company’s differentiation and execution matter more than the business it is in.
All industries have leaders and laggards.
Leaders are more than likely the ones most differentiated.
5. Have you proved the concept behind your product, service or technology? Is this confirmed by data or experts? How will you commercialize?
6. Have you protected your intellectual property? Are you sure you are not infringing on patents or trademarks?
Try FREE Risk Quiz
A friend of mine Mary Juetten founded Traklight in the US.
Affordable software that helps you identify, protect and leverage your idea for a startup, invention, or business)
Visit www.traklight.com
7. What is your sales strategy? Do you have a plan to penetrate the marketplace? How will you do this? Will your sales be done internally, with a direct sales team or with external partners? Achieved pre-sales or contracts?
8. As a start up can you demonstrate profit potential, high margins (plus 15 %), cash flow growth, and growing market share and valuation?
9. What are your capital ($) needs? What do you need to finance growth activities, including product development, recruiting key staff, launching sales and marketing?
10. Do you have financial projections? Income Statement, cash flow & balance sheet based on realistic assumptions.
11. Do you know your exit strategy?
Angels usually look for a return of at least 10 X initial investment within 5 to 7 years.
Raising money from an Angel Investor “If the jockey is good back the jockey.”
Your ASK & Raising Money from your Angel Investor
How much Capital? Intros? What’s the end goal for the meeting?
Capital Raise:
Stage / Size/ Round:
Investment Terms: Ex: Pre-Money Valuation Expectations / Range
Current Investors in Round: Founders, Friends, Angels
Monthly Burn Rate? / How long will new $ last (runway)?
Prior Investment Rounds: Size? Investors?
Valuation?
How can an angel value a your company if it has no revenue or customers?
From what I’ve heard, angel rounds are sometimes notes that convert into preferred shares when a VC comes along with a “professional” valuation. This can work because the angel gets to convert into preferred at typically a higher valuation at a time not too far into the future. Yet, most angels want to do a high level valuation calculation so that they can get a estimation of expected return.
The Dave Berkus method is useful and easy to use. There are also other ways to determine pre-money valuation of pre-revenue companies like the Scorecard Method and the Venture Capital Method.
Dave Berkus for 36 years ran two companies, then in 1993, he heard the angels call. After 86 investments with a total of 144 rounds, 39 exits and 17 profitable. His IRR is 97 %. Ninety per cent of profits come from four exits.
He says entrepreneurs should have passion and be able to follow advice. He prefers software and entrepreneurs that are coachable, and not create risk for investors.
Core philosophy – deals that create opportunity with relationships. Be flexible, and coachable .
Dave Berkus poses the question to angel investors? ‘”Luck or brains that make a good angel investor?” Increase your brain power.
Is it the jockey or the horse? The management – the jockey, or the horse – the company.
What do Angels look for typically?
Usually don’s invest in lifestyle.
Some companies get left behind cause they can’t grow fast enough.
Angels & VC markets:
Angels invest earlier stage, less money and in more companies, whereas
VC’s invest more money in less companies.
Angel investors want control and early exits.
VC’s often want to change management, angels more able to coach the entrepreneur.
Angels are satisfied with a 10 X return on investment. Angels typically invest in early stage, approximately $250,000.
Successful angel strategies ( for the Angel Investor)
Plan two rounds to control profitability
Learn to syndicate angel groups
Look for investments for exits goal of 3 to 5 years ( usually 7 years )
Ideal portfolio 5- 10 % in angel investments (1 out of every 10 is when you make money)
Spread them out (on board to add value) or passive investment
Take your time investing – restrict 2 to 3 first year
Value the investment – how much is the company worth? Depends upon ….
How big can the company get?
Way too many ways to evaluate a company.
The Berkus method – evaluate companies before revenue.
Four risk values:
- Idea
- Where has the management and company been? Prototype take away some of the risk
- Confidence in the Management team to break even?
- Jockey – Marketing risk cut through all the news to get through to the marketplace?
Make a small evaluation predicting the beginning of the maximize of your investment.
Can this business be sold at 10 X?
Can it achieve break even? If not, dilution? Can your entrepreneurs or founders leave when the company when it exits and be happy?
Too much dilution?
Evaluate deals for success & annual returns
Dave Berkus shares his successful Angel investing story and how he bet on the jockey – greendot invented the debit card. The largest card processor in the world = when he made the idea – he had a friend that would put together mastercard and Berkus invested.
Ten years later, 110 X (3.5 % of all shares traded).
Entrepreneur is now a billionaire.
“If the jockey is good back the jockey.”
INVESTOR. Dave Berkus. “Rock star” “Right on the money”
The numbers below are maximums that can be “earned” to form a valuation, allowing for a pre-revenue valuation of up to $2 million (or a post rollout value of up to $2.5 million). Usually, start-up valuations are kept low to allow for the risk taken by the investor and for the investment to achieve a 10 x increase in value over its life.
THE BERKUS METHOD TO VALUATE YOUR STARTUP
If Exists: Add to Company Value up to: Sound Idea (basic value) $1/2 million Prototype (reducing technology risk) $1/2 million Quality Management Team (reducing execution risk) $1/2 million Strategic relationships(reducing market risk) $1/2 million Product Rollout or Sales(reducing production risk) $1/2 million
Halifax finance news 