4 October, 2021
11 Hours Online + 9 Hours Homework
€ 1450
Consider the various sources of finance available to entrepreneurs: Beyond basic bootstrapping, there are corporate ventures, angel investors, crowdfunding platforms, accelerators, VCs, banks, public grants, co-investment funds, business plan competitions, technology transfer offices, family offices, private equity investors and stock exchanges. With the notable exception of angel investors, all these sources provide only money, nothing more.
The only true sources of smart finance are angel investors, who are able to influence a country’s economic development by providing more than just money to entrepreneurs and SMEs. They contribute their own know- how, provide mentorship, and share their own networks in contributing to the businesses they invest in. They are thus the main drivers of innovation and the natural leaders of the world’s early-stage investment markets.
The World Business Angels Investment Forum invites entrepreneurs and founders of startup ventures to learn mindset of investors and executives of funds. What are they looking for? What are their investment strategies? What are they learning before making investment? How do they prepare term sheets? How do they negotiate with entrepreneurs while closing deals? What are they looking for in due diligence reports? Why is it more difficult to raise 1M than raising 5M?
The objective of the course is to introduce investor mindset and strategies to those considering raising fund from corporate ventures, angel investors, crowdfunding platforms, VCs, banks, public grants, co-investment funds, business plan competitions, family offices, and private equity investors. The course aims to give the basic principles of investors and to-dos and not-to-dos while raising fund as a qualified entrepreneur and a startup founder.
In 2019, more than 300,000 angel investors invested more than $25 billion in startups in the US, and more than 310,000 angel investors invested more than 6 billion Euro in Europe. The estimated total global market size of angel investment is over $50 billion every year. Angel investors support entrepreneurs in starting up, and they support SMEs as they scale up their businesses, creating hundreds of thousands of new jobs worldwide every year.
This programme will be suited for entrepreneurs, startup founders, professionals (including CEOs) from listed companies or anyone who has an entrepreneurial background, startups incubated at acceleration and incubation centers and techno parks and anyone who wants to raise fund for their businesses. Entrepreneurs who are raising capital or planning exit strategies; successful entrepreneurs interested in becoming an investor or advisor; members of boards of directors of startup ventures.
Across the globe angel investors are investing every day into the highest potential businesses of tomorrow. A well established industry in large mature economies such as those in North America and Western Europe, it is also one that is growing rapidly elsewhere. Understanding which markets are most active and how they are continuing to develop provides clues to younger markets. And those younger markets can teach mature markets some tricks too.
This module provides a detailed explanation of the state of angel investment markets around the world, covering both mature, developing and emerging markets. It covers a description of each market, including angel education activity, statistics, tax breaks, regulation and trends and challenges.
Presentation by the lecturer: 20 min
Zoom breakout session — Getting to know each other and sharing experiences: 30 min
Q&A: 10 min
There are now over one million angel investors across the world. Although the largest volumes of angel investors are in North America and Europe, the numbers are growing fast elsewhere. Angel investing is a risky, exciting and should be rewarding activity and it is not to be undertaken without understanding (or indeed alone). By the end of this module, you will understand how a typical high net worth investor starts their angel investment journey. This module explains issues such as “learning by doing”, timescales, portfolio diversification, expected returns and the roles undertaken by many angel investors in supporting business, on top of the money they invest. The critical issue of deciding what to do for the portfolio company beyond just investing money for shares is explored and the things to consider before accepting a job are covered.
Presentation by the lecturer: 50 min
Q&A: 10 min
Arguably there are as many angel investment strategies as there are angel investors, not least because the definition of an angel investor is someone who invests their own money. Finding the right deals is a fundamental aspect of angel investment; poor portfolio selection will guarantee failure and even great selection will only improve the odds. Whether an angel investor is happy to try and spot unicorns, whilst accepting that the majority of their portfolio will fail to deliver any return, or whether they like to mitigate losses to improve overall returns, or any strategy in between, this module provides the fundamental understanding required to have the best possible chance of making angel investing activity a success rather than a failure.
This module explains how investors find investment opportunities and which ones will be worth investing in, including the different sources of those opportunities. It also shows how they get the right deal flow and covers the key agreements an angel investor will be with when they first see a deal, including non-disclosure agreements and matchmaking agreements.
Presentation by the lecturer: 50 min
Q&A: 10 min
All investors know it is never a good idea to put all your money on black. How to turn angel investment from gambling to investing in an asset class, makes the difference between a smart and a stupid angel investor. Smart angel investors build a portfolio of investments over time based on a coherent investment strategy. Whether the focus is sector, stage or geography – or a mixture of all three – a good angel investor has a focus and becomes expert in investing in line with this focus. They try not to make the same mistake twice and this is a lot easier if the investment strategy is underpinned by logic. They also understand how to tip the balance in their favour by using clever techniques.
This module discusses the timing issues relating to building an investment portfolio, portfolio investment theory and how and when to use third party advisers. Critically it helps entrepreneurs to understand how investors set an investment strategy and contextualise in the foundations of reality.
Presentation by the lecturer: 50 min
Q&A: 10 min
This comprehensive module covers all aspects of due diligence in relation to an angel investment; think of it as a bible that you can return to again and again. There are sections on areas such as commercial, people, financial and IP due diligence. It also covers term sheets and other legal agreements which an angel investor considers while investing, as well as the issue of entrepreneurs undertaking a due diligence exercise on the investor.
Not to be ignored, the module starts with an explanation of the facts and figures showing why due diligence matters. And it takes you step by step through planning a due diligence exercise, identifying the different types of due diligence which should be undertaken and, crucially what warning signs to look for in the due diligence process.
Presentation by the lecturer: 50 min
Q&A: 10 min
Although the lucky angel investor writes a cheque, gets some shares and makes a fortune, most angel investors know that such success stories are flukes. Professional angel investors understand the statistics and know that with so many pitfalls ahead, having the deal cemented in a proper legal agreement will significantly improve the odds. Going through the process of setting the deal terms is part of the due diligence exercise. From the negotiations about the deal investors learn how the entrepreneurs behave in an adult world, whilst the Disclosure Letter written to them just before signing may reveal some surprises not previously anticipated. In this module, you will learn what investors will uncover issues that typically arise when setting the deal terms. It covers the term sheet, negotiating the deal and the timetable for the negotiations, as well as important facets such as the warranties and indemnities, and drag along and tag along rights.
Presentation by the lecturer: 50 min
Q&A: 10 min
The financial purpose of angel investing is to make a return on capital commensurate with the risk undertaken with the money deployed. Whilst experienced angel investors include the enjoyment and fun of investing, plus the opportunity to share experience and help others, in the calculation of the value of their angel activity, at the end of the day, success is defined by the financial returns achieved from both single investments and from the overall portfolio. As the risks are so high, returns must be exceptional on the successes, not least because so many investments will fail to return anything. Realistic angel investors know that ignoring the price at which you invest must be sensible – invest at too high a valuation and not only will overall returns be reduced, but also that the stake they acquire will be smaller than they deserve. This latter issue will work out badly for them as they will have less influence post investment, but also means that they are in a weaker position when new funding rounds take place. The dreaded dilution impact from these later rounds will also reduce returns.
This module comprises a detailed explanation of everything an angel investor knows in relation to valuing an investment, including how to consider this issue when they do not have perfect information. With so many valuation methodologies, potentially providing different answers even the best angel investors can become confused about what the “right” valuation should be. But this module not only explains traditional methods investors use; it also describes the simple and effective “back of the envelope” method used by experienced angels across the world. The module also gives context to valuation discussing areas such as tax incentives, the impact of dividends and the value of voting rights.
Presentation by the lecturer: 50 min
Q&A: 10 min
For investors, getting the price and terms of the deal correct on the way into an investment is critical to optimising the chances of high returns on exit. The deal terms are not only about price and number of shares acquired; other key terms are around shareholders rights, board rights, the obligations of the entrepreneur and good & bad leaver clauses to name but a few. Achieving a successful outcome to the deal negotiation is of paramount importance too.
This module explains how to understand the mindset of both the investor and the entrepreneur and how to set a negotiation framework, before going into considerable detail on all aspects that must be agreed to close the deal. As an additional bonus it discusses how investors might like to behave during a competitive auction. Lastly, it takes you through the final leg of the negotiations.
Presentation by the lecturer: 50 min
Q&A: 10 min
It takes a brave investor to buy a minority stake in a private company and then forget about it. The point of being an angel investor is to add value, but how they go about it will probably be one of the most important factors to the speed of success (or failure) of the business. Get it right (especially in the first 100 days) and the company will be on an upward trajectory; get it wrong and everyone will be seeing delay or, worst, failure ahead. How should they help entrepreneurs? When should they actively not provide any help? What should be looking for post investment? This module unwraps the knowledge of experienced venture capitalists and angel investors, so that entrepreneurs can avoid making obvious mistakes.
The module explains how angel investors deal with their investment from the day they invest until the day they exit. It explains how you they help entrepreneurs and what rewards entrepreneurs should expect. There is an explanation of the different roles they can take so they have influence both inside and outside the board meeting. There is a useful section on how to deal with common problems that arise. Finally it has some useful advice on how to maintain a healthy relationship between the angel investors and the founders.
Presentation by the lecturer: 50 min
Q&A: 10 min
To people who know the angel investment industry well, it can appear that raising funding becomes seriously addictive for entrepreneurs who have been successful once. It is a rare business that only needs one round of funding. If it is growing fast it will need more cash to exploit the opportunities that have been uncovered; it if is missing milestones, but still shows potential, it will need more working capital to keep going whilst the founders and investors try to prove what the business plan suggested.
This module covers both planned and emergency funding rounds, explaining the new types of investors who will join the angel investors on the shareholder register/cap table as a result of them taking place. It covers debt as well as equity funding. Other areas covered are factors such as share option schemes, the costs of raising funding and a typical funding timetable. Extra sections cover areas such as what later stage investors look for (and what they avoid).
Presentation by the lecturer: 50 min
Zoom breakout session — Getting to know each other and sharing experiences: 30 min
Q&A: 10 min
Whilst part of the point of angel investing is the satisfaction you get from the investment journey, achieving the exit is the point at which you can assess whether it was all worth it. And when the exit is very positive, it is not only the time to celebrate the financial rewards but also all the other ones as well, such as getting technologies to market, establishing a business that has created jobs and generated economic development. Exits through, can be very different from a simple sale on just one date by all the shareholders to someone else. You can have secondary activity before the final exit and exits can come in the form of asset sales, licensing, MBOs, IPOs and trade sales.
This module shows you how to plan for an exit and a guideline timetable to follow. It explains the pros and cons of the different exit routes. There is a critical section on how to deal with an involuntary exit as well as a useful exit checklist.
Presentation by the lecturer: 50 min
Q&A: 10 min
Entrepreneurs-in-Residence accepted for the WIPA Start-up Exchange Programmes are awarded a professional certificate featuring their proficiency level on global entrepreneurship and a personal WIPA Identity Card.
