The following are course descriptions of the ACA / ARI New England Angel Education Series workshops scheduled for Winter 2014:
(Information on past workshops can be found here)
Investment Process & Due Diligence. (Feb. 2014) This session will provide an overview of the process by which Angel investment groups find companies for potential investment, from initial screening through due diligence, on the way to negotiation of deal terms and closing. Screening is the primary means of finding the one deal in a hundred that appears to be attractive to the angels – and can be a candidate for deeper examination, i.e., due diligence. Angel investors use a variety of due diligence methods – some more rigorous than others – before making an investment decision. We will describe the different due diligence models that local angels and angel groups go through prior to making an investment. Experienced angels and angel group managers will give examples of their due diligence, and several due diligence templates will be available for participants as resources. This session will also provide an overview of the terms of a typical angel investment, including valuation; the mechanics of term sheets; drafting the deal documents; and closing. The session will also touch on the ongoing process of monitoring the investment, both as an individual investor and as the person designated to be the investor group’s representative on the company’s Board of Directors. It will conclude with a discussion of exits, both good and bad.
Valuing an Early Stage Company. (Feb. 2014) Determining the likely funding requirements of an early stage company can help ensure that a deal is structured properly and that the projected company valuation has a good chance of being attractive to next stage funders. There are numerous ways to calculate valuations – revenue, income, cash flow and even Black-Scholes but in early stage investing is usually based on comparables and desired investor return requirements. Senior angels around the country have built some interesting “valuation methods”. This session will allow time to review these approaches.
Deal Terms. (Feb. 2014) This course reviews key concepts of private preferred stock equity investment deals. Each key term that defines an angel’s ownership position will be reviewed. These include those defining the economics of the deal, including pre-money valuation, option pool size, liquidation preferences, anti-dilution and dividends will be examined. In addition, the other key terms affecting investor control, governance, monitoring the investment, maintaining ownership, and management rights will also be reviewed.
Jean Hammond – Member, Golden Seeds, Hub Angels Investment Group, and Launchpad Venture Group
Jeremy Halpern – Partner & Director of Business Development, Nutter McClennen & Fish LLP; and Director & Member of Investment Committee, MassVentures