How to select Angel Investors and effectively pitch to them

1. i.MATCH
Effective Pitching to Angels & Selecting Angel Investors
Aydin Senkut
Founder & Managing Director
twitter.com/asenkut
www.felicisvc.com
© 2009 Felicis Ventures LLC

2. Aydin Senkut – Felicis Ventures
Bringing operational excellence & scaling experience to funding start-ups
 First Google Product Manager & Head of International Sales
 Angel Investor with 50+ investments, 11 exits
 Among the top 25 Tech Angels according to Businessweek (March 8, 2010)
Acquired by Acquired by
IAC AT&T
Mixer Labs
Acquired by Acquired by
Intuit Twitter
Acquired by
Acquired by Google
Shanda Games
Acquired by Acquired by
Google Microsoft
© 2009 Felicis Ventures LLC

3. Angel Investors in VC Ecosystem
Idea Start up Intro Rollout Growth Expansion Maturity
Inv. Banks / PE
$10MM - 100MM+
Grants of up to $1MM
Acquisition Stage / IPO /
Mergers
Revenue / EBITDA
Angel Investors
$10k – $1MM Investment Banks & PE
Funds
Venture Capital
Friends, Family or Funds
Grants
Individual Angels / Groups /
Boutique VCs
© 2009 Felicis Ventures LLC

4. Finding Angel Investors
…with a “POSITIVE BIAS” towards your company
Timing Areas of Interest
Strong Connection
To YOU or Your Domain
Referral Source Domain
Expertise
© 2009 Felicis Ventures LLC

5. How to Select Angels ?
Different Types of Angels
“Hobby”
“Money” “Expert”
Family
Professional &
Friends
© 2009 Felicis Ventures LLC

6. Targeting the Right Angels
Consider your stage and capital needs
 Angels or Angel Syndicates most effective when round is less than $ 1M
Lead / Anchor Investor
 Find the lead investor (usually financial lead as well)
 Help determine the terms / watch the deal
Angel Syndicate
 Make sure targeted [angel] investors are:
 Active
 Have domain expertise
 Are interested in your field / company
© 2009 Felicis Ventures LLC

7. Getting to First Meeting
Become a “known quantity” – Referral is key
Introduction / Referral
 Sending “Cold” emails are likely to be unproductive
 Referral from a “known or trusted” source is best (university, previous company, lawyer, etc)
 Meet target investors in action (ie Conferences, Events, Activities)
Follow up Material / What to Send
 Brief summary in email (shorter the better – ideally one paragraph)
 Executive summary (1 page)
 PowerPoint Deck (shorter the better)
© 2009 Felicis Ventures LLC

8. The Pitch – Part I
For Successful Pitch, Minimize the 5 “Perceived Risks”
1. Funding Risk
 How much of the round is spoken for ? Who else is investing ?
2. Team Risk
 Is this the right team to do it ? Who is missing ? What is the track record ?
3. Execution Risk
 Confidence in the team’s ability to execute the vision, on plan, on time, efficiently
4. Market Risk
 Is this the right market ? Does the product fit a major pain point ? Is it the right time ?
5. Exit Risk
 Potential for this company to be acquired or an IPO
© 2009 Felicis Ventures LLC

9. The Pitch – Part II
Main Goal of Meeting 1 is: Get to YES or Meeting 2
Suggested Contents / Outline for a Good Pitch – Top 10 Points to cover*:
1. What do you do? What customer need do you address? (business card rule)
2. Who is on your team? How are they relevant? Who is missing?
3. Introduce the product and the benefits
4. How big is your market? Why is the market ready now?
5. What is your go to market strategy?
6. Where are you now? How much traction do you have?
7. How do you grow fast ? What is your vision to become leader in your space ?
8. What is the [realistic] competitive landscape?
9. What will you use the funds for ? (Add financials & projections if you have)
10. The Ask – how much do you want and where will it take you?
Appendix: Anything you think will come up in questions
*Thanks to Rebecca Lynn from Morganthaler Ventures for her input
© 2009 Felicis Ventures LLC

10. Valuation
It’s Cyclical and Depends on Supply & Demand
VALUATION OF SEED ROUNDS*
All amounts in millions
*Source: NVCA
© 2009 Felicis Ventures LLC

11. Tips to Remember
DOs and DON’Ts of Successful Pitches
DON’T DO
Make it a monologue Your Homework
Underestimate Risks Stand Out
Miss Facts ASK for Action
© 2009 Felicis Ventures LLC

12. Aydin Senkut
twitter.com/asenkut
www.felicisvc.com
Confidential – Copyright Felicis Ventures LLC
© 2009 Felicis Ventures LLC