Angel Capital Summit 2010 Roundup


A small step toward the Triple Bottom Line (Part 2 of 2)

Chia-Li Chien | Dec. 20, 2010

Continue from part 1...

Part 2. Presentations (from the entrepreneurs to investors). There were 39 companies pre-selected by deal screeners from the 131 submissions received for the Angel Capital Summit. I helped screen a few of the companies, and can tell you first hand it’s really hard to pick and choose which one to listen to. I naturally had a real interest in seeing how the companies I selected did.


A. Two out of the ten deals I heard would compel me to invest if I was the investor. After being in the financial industry for many years, I tend to be conservative in any type of investing. Therefore, I purposely chose traditional types of businesses that I related to because I knew their industry well. I naturally turned away things that I didn’t understand.


B. Contract Smart and Boomerang Asset Recovery were my final picks to invest in. Why? Both companies fundamentally are software companies and I owned a software company and was in that industry for 15 years previously. My candidates service traditional industries such as construction and government, of which I am familiar. Here are the other reasons I was impressed with these two companies:

  • Strong marketing process with defined market makers and clear Go-To-Market action plan.
  • Innovating existing services.
  • Proven positive cash flow with realistic growth projection.
  • Strong management team, which demonstrated 10,000+ industry hours per owner.
  • Have repeat clients.


C. Things to do while presenting to investors. There is obviously a certain flow of presenting to investors. Basically you should address the who, how, what and why. For the most part, here is the list of components I heard throughout the day:

  • Market issues, opportunity, solution and target market.
  • Business model
  • Market research for proof of concept
  • Growth Pro Forma of next 3 to 5 years
  • Competition
  • Capital amount and the use of funding
  • What the exit looks like


D. Things NOT to do while presenting to investors.  There are many things that could go wrong once the owner opens the floor for Q&A. Many owners missed the mark on Q&A because they did not do the following:

  • Take control of the Q&A. Don’t let one particular audience member take over the floor. Take control and ask nicely to speak to that one person after the session. Otherwise, other people may not get a chance to get their questions answered.
  • Answer the questions. In many situations, the assumption of the answer was just dead wrong. Think about why people are asking that question. Don’t simply assume you know you’re right; specifically ask why you are obviously wrong.
  • Show your confidence. People are buying your confidence. It is something that no one can fake. If you don’t have it, have someone else present on your behalf. It certainly will not break the deal, but if you are not a natural public speaker, just be a back-up to answer technical questions. Your key is to win the funding, not to show off your speaking skills. Investors want to know how you will make their money worth investing. Again, this is a sales presentation.


Well, if you missed the event, this should give you some idea of what happened at Angel Capital Summit. Don’t miss the next one if you have an entrepreneurial idea you want to present to investors. Preparation is the key, but in order to help you make the most of the opportunity, there are 250 volunteer hours contributed to each presenting company to ensure successful funding. You can always re-use what you prepare for Angel Capital Summit for other events such as Southeast Venture Conference.



Here is my presentation and handout about “5 Deadly Business Sins to Avoid” if you missed this. See what others are saying about my workshop. Remember “Triple Bottom Line” is your goal – being the best choice for your customers, employees and investors.

Chia-Li Chien, CFP®, CRPC, PMP; helps entrepreneurs to creating business value that transforms their world.  She is the author of Show Me The Money and columnist for WomenEntrepreneur.com & Fox Business online.   She is available for consulting, speaking engagements and workshops.  She can be reached at http://www.chialichien.com or jolly@chialichien.com.

 

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