Introduction to Angel Investing

How to Start! Step 1: Set Goals Set a Limit to the total amount of money and time you want to invest in Angel investments: • Speak with your spouse and financial advisors • No more than 10-15% of your total portfolio is recommended, but that varies widely (see the NACO Guidebook, A Practical Guide to Angel Investing) Set a Target Number of Companies • 15+ is recommended or perhaps 2-5 investments per year • NOTE: You may want to start off by investing in an Angel Fund to gain diversity while you get more involved individually in a smaller number of companies (see Section 2.4 in NACO Guidebook, A Practical Guide to Angel Investing) Set your Average Investment Amount per Company • Many recommend starting at $10-25k per investment round • Don’t put all your money into an investment at once – save some for future rounds (“keep your powder dry”) Set your Level of Involvement • Assess your Interests and Value Add • Decide what role you want to play in the selection of companies, due diligence, deal-making, corporate governance, and post-investment involvement Find Other People to Collaborate and Share Risk • Go to Events in your local entrepreneurial ecosystem • Participate in an Angel Group • Take NACO Angel Academy Educational Modules • Go to Investment Summits 2 Set Goals Introduction to Angel Investing 1 How to Start 2 Set Goals 3 Pick Good Companies 4 Make Good Deals 5 Grow Good Companies 6 Get Your Investment Back

Visit www.nacocanada.com for more information.

| Introduction to Angel Investing: How to Start