This document discusses angel investors and their role in funding transmedia businesses. It begins by defining an angel investor as an individual who invests their own money and time in early-stage companies in exchange for capital returns. It then outlines different levels of funding for startups, showing where angel investors fit compared to other options like banks, venture capital, and IPOs. The rest of the document discusses angel investors' goals of 10x returns within 3-5 years, their investment process, how to evaluate early-stage opportunities, challenges of transmedia businesses, and reasons for joining an angel investment group.

1. About Angel InvestorsforTransmedia Businesses Presented by: Jordan Green Melbourne Angels, President/Founder AAAI, Deputy Chairman/Co-Founder

2. A Little About Angel Investors An Angel is a person who invests his/her own money and time in an unlisted growth company as a personal decision with the objective of realising a capital return in the foreseeable future. Financial Capital + Intellectual Capital

4. ~16,000 active Angels in Australia

5. $1.4b invested in over 5,000 companies

6. 26,500 jobs fuelled by Angel investment*AAAI National Angel Survey 2009

7. A Little About Angel Investors The Role of the Angel Investor Early stage funding Mentor and coach Business acumen and governance Network of professional advisors, other Angels and other capital Sector knowledge and connections to potential customers, suppliers, personnel and acquirers Design and facilitate exit EXIT

8. A Little About Angel Investors Investment Goals 10x or better return on investment 3-5 years to exit Imply Scalability of large markets, often foreign Strong alignment with entrepreneur Focus on value growth rather than dividends Angels are individuals – it depends!!

9. Deal Flow Personal & Personnel Screening Financial Competition Intellectual Property Evaluation VISIO CORPORATION Markets Business Model $ Terms Sheet Due Diligence $ $ Invest Manage Investment 3-6 months 2-8 weeks 1-6 years 3-6 months Exit Investment Process

10. Valuing Early Stage Opportunities ‘Value is in the eyes of the beholder’ Customers buy benefits Investors invest in the future Management is as important as design expertise Have a plan - certainty for customers & investors Capital Efficiency - Incremental vs. Big Bang Intellectual Capital is ultimately worth more than Intellectual Property Design expertise/reputation Industry knowledge/access Market knowledge/access Technology knowledge/access

11. Two Types of Business Value Growth Business [Value to Sell] Lifestyle Business [A Job for Life] Critically dependent on entrepreneur Low and slow to competitive advantage May take many years to stabilize and achieve scale ROI may be small given low potential valuations relative to time and risk Cash flow and/or customers are valuable to an acquirer Capital captive Business with sustainable value independent of entrepreneur Invest in IP to create competitive advantage Aggressive growth Assets or competencies or customers or cash flow are valuable to an acquirer Capital returns

12. How to Approach Opportunity Know yourself Is your business suitable for an investor? Is your business an appealing investment? Can you work with a business partner? Can you share control? For which investor is your investment opportunity best suited? Would you invest?

13. How to Approach Opportunity Be Prepared Plan a path forward Have the skills and tools to navigate the inevitable detours Know what to expect Know when to walk away Know yourself

14. Transmedia – the challenge! Average Angel investor is over 45 Technical background but, not current Business background but, not web Eyeballs not saleable value on their own Investor is not the user Transmedia is industry convergence, makes exit value & targets harder No transmedia success stories/track record

15. Transmedia – the opportunity!! Emerging markets Low barriers to business entry No dominant player(s) Value built across established industries Value in product not advertising Technically innovative Commercially agile Sparks the imagination – it’s exciting!!

16. Thank you …. melbourneangels.net

17. A Little About Angel Investors An Angel Group is a collection of individual Angel Investors who combine under a common brand with defined rules of membership and conduct to collectively identify, review, select, evaluate, invest in and exit from Angel investments.

18. Why join an Angel Group? Deal Flow Process, Discipline, Best Practices Risk mitigation Diversification by volume Diversification by scope Time Syndication Community Fun!!