C HAPTER 8: B UILDING A N A NGEL G ROUP
The Band meets on the first Monday of each month over dinner and companies are given one hour to make their presentation. Following the presentation, the candidate is asked to leave. The members of the Band then go around the table to vote “yes”, “no” or “yes but.” “Yes but” requires the company to provide further information; if satisfactory, the vote becomes a “yes.” As soon as four “no’s” have been registered, the deal is dead. Once a decision is made to pursue an investment, the major conditions of a term sheet, such as valuation, are considered. Follow up discussions to resolve the “yes buts” are performed by phone and e-mail. If the e- mail message has not been responded to within five business days, then the recipient is deemed to be in agreement with the e-mail. The Band actively works with other syndicates or early venture capital groups to raise larger amounts of money for potential investments. In its first 18 months, the Band invested in four deals with another two in progress. Four other opportunities, which had been approved by the group, fell through during negotiations and final due diligence. Decisions as to valuations are made at the group level, where parameters are set defining minimum or maximum values. It is then up to the champion to negotiate the specific terms with the company. LONDON ANGEL NETWORK - THE TECH ALLIANCE VENTURE GROUP London is home to many leading institutions, including University of Western Ontario, Fanshawe College, and major hospitals and research centres. Many residents and graduates have started innovative companies in the life sciences, information technology and advanced manufacturing sectors. Recognizing that these start-ups and early-stage companies require capital, a number of angel investors and other stakeholders have formed a network with the goal of bridging gaps in early stage financing and promoting small business growth in London. Over the years, the London Venture group has taken advantage of several government programs to assist network angel investors and innovative businesses. The group has also attracted a significant number of volunteer members who provide support to high potential companies at no cost. Over time, a list of investors has been compiled that is used to contact angels regarding investment opportunities. There is no pooling of funds and decisions regarding investments are left to individuals. That being said, investors have followed each other on deals after other members have completed the background research and due diligence. The London Venture Group joined the TechAlliance to share resources and to expand the number of volunteers and angels available to assist in the growth and success of innovative companies. The TechAlliance Venture group offers acceleration services to the businesses and angel education services for potential angels. These are discussed below.
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