For the company looking for investment, we can take you through the whole process. We have acted for many companies looking for funding, ranging from start-ups and university spin-outs to large multinationals, and the team has particular expertise in the healthcare, golf and leisure, technology and renewables sectors. We have lawyers dual-qualified in both Scots and English law, and are happy to act in relation to investments being made into English companies or investments being made by investors under English law.
We are happy to refer to LINC any companies looking for investment, or any person interested in joining an angel investment syndicate, and are always interested to hear from anyone looking to make equity investments. To discuss any venture capital, angel finance and equity investment matter, please contact Chris Allan or Vikki Long. See all our people. All the research shows startups and SMEs are the net job creators of modern economies. Find as many ways as possible to educate the media, the government, the wider community that supporting high-growth companies matters; make people aware of the benefits to the entire economy of making this work, of encouraging more entrepreneurs, of making smarter entrepreneurs and of helping to make more and smarter angels.
We need to encourage more angels to increase the amount of capital available, because the more capital there is available the more likely people are to diversify and thus the more capital there is for different sectors to develop new products, and we need more angels to bring different skills into the mix.
There is so much going on in social media and some of the new technology, for example, that you almost have to find a way to search out the recently cashed-out, under year olds because they can make a material difference to understanding the current consumer market for those sorts of companies. Nature and consequences of the globalization of angel investments across a variety of geographies with varying levels of venture capital markets and other forms of risk capital.
Read more. The focus is on promoting fair, efficient and transparent markets, which means more useable disclosure documents for investors, but also appropriate exclusions so that regulatory burdens are more proportionate to the risk of potential harms being addressed. A clear understanding of the application of these exclusions by early stage companies, their investors and advisers is therefore an important component of the vigour and health of the early stage ecosystem.
Books & Publications
Within these three categories there are two key exemptions applicable to angel investors. Satisfying the conditions of these exemptions minimises the risk of action by a disgruntled founder or fellow investor. In our recent discussions with the FMA two additional issues have been clarified with respect to small offers:. Eligible investors may self-certify but a third party must verify the self-certification; either a lawyer, chartered accountant or authorised financial advisor. There was some initial concern that verifiers of eligible investor certificates would be unwilling to do so because they were left exposed due to the subjectivity implicit in making this assessment and the risk that the previous experience could be found to be insufficient.
By way of example, if a person, wishing to make an investment in a start up company, cites previous experience in trading listed stocks, a third party lawyer, counter signing the certificate can be comfortable in doing so as long as:.
- The Corporate America Survival Handbook: A Cornucopia of Essential Information.
- Phased Array Antenna Handbook.
- Introduction to Business Angel Investing.
- Invest To Exit A Pragmatic Strategy For Angel And Venture Capital Investors?
In summing up, unless there is reason to believe that the actual facts stated in the certificate are incorrect or the certificate does not include statements that it is required to include, the offeror will be able to rely on an eligible investor certificate and no action could be brought against the independent advisor on the basis that their only role is to advise the relevant person as to the consequences of self-certifying as an eligible investor. We have been assured there is no need to certify angels on a deal by deal basis. The small offers exemption often referred to as an SOE is a personal offer of equity or debt securities:.
A personal offer is one made to, and that may only be accepted by, a person who is likely to be interested in the offer having regard to:. It is also important for an angel backed company to be aware there is an obligation on them to notify the FMA within a month of the relevant accounting period that they have made a small offer. In clarifying the extent of this obligation the FMA made it clear the issuer need only report once a year on a very simple basis:.
Investors will not be able to take up any offer unless they clearly meet the criteria of FMCA Schedule 1 exemptions. It is also important to be aware that relying on this exclusion requires the company raising funds to be very careful that ONLY those people who fit into one of the personal offer categories receive the offer. It is of course common for angel investor networks to notify their existing members about new offers, and those members may then pass on information to others. The FMA have made it clear that they are very happy to be approached if anyone has concerns about advertising.
A number of angel networks operate nominee companies. These entities hold the shares of their members who invest in any individual angel deal. The nominee in most of these instances operates as a bare trustee holding the shares for the individual angel. The nominee structure minimizes the number of shareholders on the capitalization table. In our discussions with the FMA we have been assured that the nominee structure does not limit the usefulness of the small offers exemption.
We explored a number of different factual scenarios with the FMA that lead to different assessments of how the FMCA applies, but in general, to reiterate the point just made, we were advised that the small offers exclusion does not prevent investors investing through a nominee company. Where a nominee company holds shares on bare trust for an underlying investor, the effect of the FMCA is that the underlying investor is still receiving an equity security therefore the underlying investors count in the investor limit, because they are still being sold financial products.
The impact of the advice we have received is that it is necessary for AANZ members to keep clear records, on a deal by deal basis of the relevant exemption under which individuals are investing. In an ideal world, all this would be more straightforward and we would have unequivocal advice that the way we are operating is legally robust and all participants are safe. There is no such thing as an ideal world! The AANZ is nevertheless satisfied the FMA has a high level of understanding about how we operate and even more fundamentally about our intention to do so in good faith within the confines of the Act.
Terrific to see the acknowledgement they have given to the wider ecosystem including angel investors in their success to date. The funding round was led by US technology venture group Madrona Venture Group and comes as they were expanding their Wellington office and opening their US headquarters in Seattle, Smith said. First published on nzherald. In this great story, angel backed company Balex Marine talk about their aspirations for the business of getting boats in and out of the water and their aspirations for raising their second round of funding.
As the founding VP for the Malaysian Business Angel Network, Raiyo played a key role in establishing the current angel investor community in Malaysia and has also established, developed and managed angel networks in Hong Kong and Singapore, and works with angel clubs and associations across Asia and the West. Raiyo is MD and Partner for Mercatus Ventures, a Malaysian-based early stage venture firm that invests in, and takes a hands-on role to develop, regional ventures.
He is also a Partner in Serendipity Ventures, a Hong Kong-based boutique venture management firm, where he personally invests in early stage ventures and takes them to market. Only a handful of seats remain. Be quick to register yours. Antonia and David Speight are the entrepreneurs behind Acuite, a cloud-based web application that provides real-time visibility into the performance of construction projects.
David said current solutions did not allow users to access information with the kind of timelines needed in the fast-moving environment. The process gave them confidence there was a market for their concept and in October last year they came up with a visual concept for Acuite. They presented it to three major construction companies, convincing them to come on board as trial customers and have since been developing the software with those industry partners. First published on Nzherald. One of the most powerful things angels can do for a venture is provide commercial introductions.
In this terrific story by Caitlin Sykes, John Wadsworth of Unovent provides a terrific example of this…. John Wadsworth is the inventor of home ventilation system Unovent, which launched on the market last year.
DCP - Diffusion Capital Partners
Unovent has a brand partnership with Showerdome — a company that produces a moisture reduction product for bathrooms. In August last year I decided I needed to get some serious investors on board for Unovent, so I did a presentation to the Enterprise Angels angel investment group in Tauranga. Maurice was already a shareholder and director of Showerdome, and he could see we were chasing the same customers, so he and Dan came on as shareholders of Unovent, and Maurice also came on as a director. Because we had this common shareholder and director, and we had this market link with Showerdome, it just made a lot of sense for us to listen very carefully to what Maurice had to say about how they had developed the Showerdome business, and to look at their business plan.
From time to time we get asked by those people if they could also represent Unovent. And thirdly, we both have a DLE promotional brochure for our product, and Showerdome will put one of ours in with their goods when they send them off and we do the same.
Throughout the year both companies have been running prize giveaways in various publications, and recently for the first time we completed the draw of a large prize comprising an Unovent system and a Showerdome. Also, for every house to be effectively made comfortable and healthy, there needs to be effective heating, effective insulation, and effective ventilation plus a Showerdome to get rid of moisture.
- Introduction to scientific computing: twelve projects with MATLAB.
- Your Money or Your Life!;
- Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders!
- Equine Podiatry: Medical and Surgical Management of the Hoof;
So there is potentially the opportunity for us to do a range of things with organisations that work in those other areas as well. Enterprise Angels is a shareholder in the incubator through its sidecar fund EA1, and sits on its investment committee.
Both Sides of the Table
That involvement could include providing expert guidance and appropriately qualified directors for the incubated company. Mr Murphy said the Scion nanofibre research was at too early a stage for angel investors because the commercial possibilities were still being worked out. Bay of Plenty-based Onesixone has developed a software-hardware solution, which bridges the gap between industry standard DJ software and entertainment lighting systems.
IPO, based in Dunedin, is developing a point-of-care bovine mastitis diagnostic test, which will guide antibiotic treatment decisions.
Both Sides of the Table
The technology only requires minimal laboratory requirements through vet practice or on farm, a simple sampling procedure. Mr Jones said he was not yet able to provide details of the third company, which was in the software sector, for reasons of business confidentiality. We tend to stick to NZ sourced angel stories, but Hamish Hawthorn from Sydney Angels busts some frustrating angel investor myths in this story. Check it out. Reasons for a poor assessment can include inexperience in the marketplace or a poor previous track record. What are common criteria for screening investments?
Typical criteria may include any or all of the following:. Industry Geography Market and growth potential Personal integrity and attributes of the entreprenuer Track record of the management team Quality of the referral source Background of the board of directors. What types of securities are used in angel seed or start-up rounds? Companies that anticipate pursuing venture capital in later rounds sometimes structure their seed round as convertible debt.
The convertible debt securities can be structured to permit the next round of investors e. The convertible debt mechanism eliminates a potential disagreement over price.
Convertible debt, while pragmatic, can be risky since it assumes the next round of funding will happen fairly quickly. Thus, most angel investors seek preferred stock with priority rights over the founders and any other prior investors. Typically, these priority rights relate to liquidation and voting. Convertibility rights allow preferred stockholders to convert to common stock at some predefined conversion rate typically upon a sale of the company.
Participating rights allow angels to be repaid their original purchase price plus unpaid dividends, if any and then share in the remaining assets as if they held common stock. How much do angels typically invest? Angel investors are typically low percentage owners, e. As a consequence, they cannot exert formal control. Therefore, they look for contractual control through board participation, restrictive and affirmative covenants on operational matters such as compensation and capital investments, structural issues such as sales of assets and purchases of other businesses, and on equity matters such as participation in future financing rounds.
They will also look to anti-dilution clauses and similar protective provisions. What are the exit strategies preferred by angel investors? Putting aside ROI, IPOs are the most glamorous exit strategy, but acquisition transactions are cleaner and provide the investor with easier access to cash.