Pitching For Investment Masterclass December 6th 2011 Part 4: Angel Investment John Waddell (Archangels)

John Waddell

FIOS Genomics Ltd Xi Engineering Consultants

Vital Statistics  Year founded: 1992  Number of angels: 100+  Invested by us: £62m  Total w/others: £130m  New deals 2010: 5  Follow-ons 2010: 9  Companies seeded: 76  Active: 26  Failed/Moribund: 37  Flotations: 3  Profitable Sales: 8 (10 trade sales in total)  Companies that have paid dividends: 3

Historical Trends Emerging Almost 1:1 track record for active/exited/dividend paying (52%) versus failed/moribund (48%) Analysis based on number of companies

Current Portfolio  Av investment age: 4.8 yrs  Av investment: £1m  New deals per year: 3  Av number of rounds: 4  Av number of angels: 19  5 profitable companies 83% product focused 17% service focused

Current Portfolio CompanyYearsArchangelTotal Touch8£3.4m£5.4m CXR10£3.1m£4.6m VeriSIM5£1.0m£3.5m Arrayjet7£2.1m£3.4m Reactec7£1.3m£2.3m Vitrology4£1.2m£2.3m Lux Innovate8£1.7m£2.3m MGB Biopharma 1£0.6m£1.8m Indigo7£1.6m£1.8m Flexitricity6£1.4m£1.6m Bloxx7£0.9m£1.6m Ateeda3£0.7m£1.3m Scalar7£0.7m£1.1m TOTAL-£19.7m£33.0m Companies with more than £1m total investment

Process  PLAN  ITERATION/ DUE DILIGENCE  CORE INVOLVEMENT  BOARD APPROVAL  PRESENTATION  BOOK BUILD/ SYNDICATION  FOLLOW ONS

Culture  PROCESS NOT PROFIT  UPSIDE IN THE UPSIDE  FUNCTION OF SYNDICATE (NOT VICE VERSA)  NOT PUBLIC – NOTHING TO FLOAT  DON’T COMPETE

What does “Investor Readiness” mean?  Good deals get backing  Good plans sell deals Team – Product – Market Hard work – Think it through  Clarity of likely returns  Realistic defendable assumptions

Investor Returns so Investors Return  Dividends  Trade Sale  Flotation  PE Sale  Who said exit?

 Joined up Government support  Co-Investment Funds/ Groups  Supportive, talented community  People want to make things happen Not a fund but....

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