Dive into Angel Investing s 2024 0502.pptx

A workshop for Aspiring Women Angel Investors

1. Dive into Angel Investing: A Workshop for Aspiring Women Investors May 2, 2024 Seattle Angel Conference Workshop Elaine Werffeli

2. Who are Angel Investors Angel investors are accredited investors who provide financing with their own money for early-stage startups usually in exchange for convertible debt or ownership equity or SAFE 3

3. Accredited Investor defined Annual Income : An individual who makes a gross income of more than $200k ($300K with spouse ) for at least 2 years with ongoing expectations for the next year Net worth : An individual (or married couple) whose (joint) net worth exceeds $1M , excluding the value of a primary residence. Trust Management : Someone managing a trust with more than $5M assets 3

4. Increase Awareness of Opportunity to Angels that simply don’t have their wings yet 5.3 Million* individuals are “defined as those having investable assets of US$1 million or more, excluding primary residence Source: *2018 World Wealth Report compiled by Capgemini; **2010 Census 4.5 Million** Households made over $200K (3.9% of US HH) Only capturing 3%-6% Of this potential today

5. Angels are responsible for funding a significant % of Deals in the Ecosystem accelerating innovation Source: Q2 2021 Venture Monitor by PitchBook and NVCA

6. Women Angel Investors now represent 40% of all Angels in the US 29% 20% 26% 25% 26% 19% 22% 12% 13% 11 % 17 % 12 % 14 % 9 % 5 % 30% 30% 34% 40% Source: Center for Venture Research

7. The rate of growth of Female Angels has been significantly greater than Non-female Angel Investors ..keep momentum Source: Center for Venture Research

8. There is a positive cycle between Angels and Entrepreneurs that creates long term growth Angels Entrepreneurs 55% of Angel Investors were previously a founder or CEO of their own startup Increasing number of successful Entrepreneurs in the short run can help the number of Angels in the long run Source: The American Angel: Report from ACA and Wharton Entrepreneurship

9. Female Angel Investors and Women Owned Businesses seeking funding growth is on similar trajectories

10. Companies with Diverse Executive teams are more likely to outperform their peers Source: McKinsey & Company Diversity wins 2020 – How Inclusion Matters

11. What do Angel Investors do? Review Founder Pitches Perform Due Diligence Invest their own money

12. Angels – All don’t always Invest the same way As Individuals In Groups

13. Series B+ $25K - $1.5M $2M - $7M $10M+ Series A Customer/Problem Fit Source: iBusinessAngel.com Problem/Solution Fit Product/Market Fit Product/Channel Fit Expansion @ Elaingelinvest $100M $10K $1K

14. % of Total Deals in US Regions 2022 Halo Report

15. Diversify your Overall Investment Portfolio Invest only a portion of your net worth dependent on your risk tolerance. Typical guidelines: up to 5% - 10% of net worth $1M Total Net worth ~ Up to $100K towards Angel Investments $5M Total Net worth ~Up to $500K towards Angel Investments $10M Total Net Worth ~ Up to $1M towards Angel Investments

16. Diversify the Angel portion of your Portfolio Create an Angel Portfolio and diversify within that Own a minimum number of good quality companies to spread out the risk because of the high failure rate. (20+ or more) With $100K to purchase 20 investments check size would be $5K With $500K to purchase 20 investments check size would be $25K With $1M to purchase 20 investments check size would be $50K This is why Seattle Angel Conference (SAC) investment size is $5K Lower amount is easier to start and build a portfolio of investments

17. Why Do Angels I know Invest? Financial Return Diversification of net worth Help new job growth – local economy: about 4 jobs per Angel Investment Have a front seat on latest innovation trends Meet like minded colleagues who have become friends Expand Personal Growth and Learning A way to Give Back via Leverage Experience through advise and mentorship to Start-ups Share learnings with new Angel investors High Energy and the Enthusiasm is contagious Personal happiness and fulfillment – in making a difference Its Fun!

18. My Personal Journey into Angel Investing I didn’t know I was accredited Found a place to “Learn by Doing” with Seattle Angel Conference and never left Been investing for over 10 years Portfolio 30+ startups Starting to see positive results: 10% have Exited 15% have Closed 75% are Active Learning a ton and continue to do so Meet great people along the way

19. Panel Discussion

20. Panel Questions What first intrigued you to think about Angel investing? How did each of you get into angel investing? How did you feel during the early experience? How many investments do you have in your portfolio? Did you choose to invest by yourself on in a group?  Why? Have you invested with other groups have you invested in? How was that experience different? What are the reasons you are participating in Angel Investing? Have your why’s changed over time? What keeps you investing if you are active today? What would you wish you knew before you started? What advice would you have to someone who is new to Angel Investing?

21. Q&A