ACA New England Angels

The following are course descriptions of the ACA / ARI New England Angel Education Series workshops scheduled for Fall 2011:
(Information on past workshops can be found here)

The Angel Investment Process (Oct. 24, 2011) An entrepreneur needs capital. Angel investors would like to invest in situations that have the potential of high returns. This session will concentrate on how these two get together, work together, and then part company. It will begin with screening – finding the one deal in a hundred that appears to be attractive to the angels; an overview of due diligence; a discussion of the terms of a typical angel investment, including valuation; the mechanics of term sheets; drafting the deal documents; and closing. The session will continue with 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.

Instructors:

Jeffrey Arnold – Boston Harbor Angels
Lucinda Linde – Walnut Venture Associates
Christopher Mirabile – Launchpad Venture Group

Deal Terms. (Oct. 24, 2011) 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.

This course also reviews key concepts of private preferred stock equity investment deals including pricing & deal economics; investor control & governance; and terms for monitoring & preserving the investment, maintaining & increasing ownership, and liquidation preferences. Norms for term sheets designed to be ‘friendly’ for syndication and for future investments will be covered, as well as ‘safe’ convertible notes. Current trends in angel deals and specifically east coast angel deals will be reviewed.

Instructors:

David Verrill – Hub Angels Investment Group
George Simmons – Cherrystone Angel Group
Jeremy Halpern – Nutter McClennen & Fish LLP

Investment Process & Due Diligence. (Dec. 5, 2011) 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.

Instructors:

Norm Meisner – Beacon Angels & Launchpad Venture Group
Christopher Mirabile – Launchpad Venture Group
Sheryl Schultz – Golden Seeds

Valuing an Early Stage Company. (Dec. 5, 2011) 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.

Instructors:

Jean Hammond – Golden Seeds, Hub Angels Investment Group, Launchpad Venture Group
David Verrill – Hub Angels Investment Group

Guiding Growth: Counseling Startups as a Coach, member of the Board of Advisors, or member of the Board of Directors. (Dec. 5, 2011) One of the most important roles an Angel investor has is helping a first-time CEO understand the difference between an occasional business coach, an advisory board member, and a member of the board of directors. We will review the responsibilities of each of these differing roles from an angel perspective. Further discussions will be devoted to exploring what it means to be a Board Member of an early stage company. Besides the fiduciary responsibility and associated duties that come with being on the Board, board members can also help shape a great board process while providing substantial advisory support that can be part of the magic that can help grow strong companies. The second part of this session will be a panel discussion that will take questions from the audience about board experiences and the changing role of the board at various stages of company growth.

Instructors:

Ham Lord – Launchpad Venture Group
Joe Caruso – Bantam Group
Michael Mark – Walnut Venture Associates