Private Sector / Angel Funding for

Entrepreneurial Ventures

Cybersecurity – Unmanned Systems Conference

Jean Peters Board Member ACAManaging Director – Golden Seeds

October 1, 2015

ANGEL CAPITAL ASSOCIATIONMission: Fuel success of angel groups and accredited investors and the early-stage companies they support

• 13,000+ investors• 250+ networks/grps.• Accredited platforms• Family offices• Every state & 5

Canadian provinces

ACA Angel Group Locations

MEMBER GROUPS AND PLATFORMS INCLUDE

Regional/Sector Focused DC/VA/MDAccredited Platforms

EARLY-STAGE FINANCING LIFE CYCLE

DiscoveryProof-ofConcept

ProductDesign

ProductDevelopment

Commercialization

Idea Pre-seed Seed ExpansionOperating Capital

Friends & Family

Angels

Venture FundsFounder

Institutional Equity (PE)

Debt Financing

Early-Stage

(Non-equity) - Government / Foundations / Economic Dev Grants, etc.

ANGELS FUND MAJORITY OF STARTUPS

Sources: “Angel Investing Market for 2014, Center for Venture Research/ UNH; NVCA 2015 Yearbook; PwC MoneyTree

*(12 expansion-stage companies accounted for more than $10 B of this total)

• $24.1 billion• 73,400 deals• 18,350 seed• 33,764 early stage• 20,552 expansion • 316,000 individuals

Angel Investors • $49.3 billion*• 4,361 deals• 194 seed• 2,166 early stage• 3,001 later/expansion• 635 active firms

Venture Capital

ANGEL VS VC INVESTMENT SIZE AND VALUATION

Sources: “Angel Investing Market for 2014, Center for Venture Research/ UNH; AngelListt; NVCA 2015 Yearabook; PwC Money Tree

• $24.1 billion• 73,400 deals

• $2.6M

• $328K

Angel Investors • $49.3 billion*• 4,361 deals

• $5.1M

• $11.3M

Venture Capital Total InvestedTotal Deals

Average Seed/Early Stage Pre-Money Valuation

Average Investment per deal (all deal sizes)

2014 ANGEL GROUP INVESTMENTS BY SECTOR ($)

2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

32.4% 35.7% 34.9%39.1% 38.3%

30.0%29.0%

18.9%

22.7% 24.8%

6.3%

12.7%

16.7%

19.6% 15.3%8.2%

3.9%

3.2%

4.1%4.2%5.7%

4.2%

5.7%

3.8%2.7%1.0%

1.1%

1.7%

0.9%1.5%

16.3% 13.3%18.9%

9.8% 13.1% Other

Food & Bev-erages

Industrial

Software

Mobile & Telecom

Healthcare

Internet

2014 VC INVESTMENTS BY SECOR ($)

Source: NVCA 2015 Yearbook; PwC MoneyTree

Northwest3.6%

Southwest

4.4%

Great Plains3.8%

Great Lakes17.2%

Southeast8.8%

Mid-Atlantic10.5%

New England14.2%

Texas6.2%

New York14.3%

California17.0%

2014 ANGEL GROUP ($) BY REGION

Northwest

2.8%

Southwest

2.2%

M I d w e s t4.3%

Southeast

3.8%

New England

10.0%

Texas

3.0%

New YorkMetro

10.2%

California57%

2014 VENTURE CAPITAL ($) BY REGION

DC Metro

2.1%

All Other

2.8%

Colorado

1.8%

Source: NVCA 2015 Yearbook; PwC MoneyTree