Introduction Venture Capital Angel Investors（一）.pdfVIP

I N T R O D U C T I O N NAFTA Institute Buyer meets Supplier– June 11th and 12th New Mexico Venture Capital/Angel investing. Goals of Presentation Describe the small company financial eco-system Introduce Venture Capital Funding Introduce Angel Investing New Mexico Angels-President Former Cabinet Secretary New Mexico Taxation and Revenue Assisted in creating two start-ups Angel investor since 2003 Vice-President Business Development Financial Management Services—financial services company President of Tafoya and Brainerd Partners LLC- consulting company Small Company Financial Eco- system Entrepreneur funds company Friends and Family Micro Lenders—WEEST Corp; Loanfund, Accion Angel Investors Seed-GAP venture funds Venture Capital Funds Venture Capital Funds What Are They? How Do They Come Into Existence? Individuals like you and me or companies create Venture Capital funds. Venture Capital Funds How Do They Get Their Funds? Venture Capital funds raise money from high worth individuals, pension funds, university endowment funds, state investment funds, and insurance companies. Venture Capital Funds Why? Return On Investment!!!; Diversification of Assets Venture Capital funds usually promise their investors a 25% to 30% yearly return. Diversity of investment dollars across asset classes for investors Venture Fund Economics- Example Assumptions $30 Million Dollar Fund 2% Management Fee For Venture Capitalists 20% Management Fee Back End Percentage 30% Promised Return To Fund Investors Five-Year Investment Period Venture Fund Economics The Numbers $30 Million Dollar Fund 2% Management Fee Per Year = $600,000 Per Year $3 Million Management Fee Off Of the Top $27 Million Left To Invest Venture Fund Economics The Numbers A Typical Fund Makes Ten I