Investors

Smart Money

CEO Angels Club is an organization of active investors supported by a dedicated management where members make their own investment decisions. Therefore we are looking for for prospective members who will be active investors and participants in selecting and mentoring high quality growth companies. We expect our investors to be involved in the success of the investees and help them pro-actively.

Ethics and Reputation

This is a closed and private community of senior executives and top local entrepreneurs that share a very strict Code of Ethics and Good Reputation . Any membership is considered if it is followed by current member recommendation. It is highly advised that prospective members meet a current CEO Angels Club member and get an endorsement for membership.

If you are an investor and interested in being considered for membership, please contact us here: angels@ceoclub.bg to submit your candidacy for membership. If you seem to be a good fit, you will be contacted by our professional staff to discuss next steps, which will include meeting some members , attending at least one meeting and submitting an application.

Benefits of Joining The Angel Group

SYNDICATION

Decrease investment risk (invest in more startups); decrease deal costs (e.g. due diligence, legal fees, organize meetings/pitches).

SUPERIOR DEAL-FLOW

The management team of the club is focused on generating deal leads; Every member is also responsible for referring deals.

PRE-SCREENING OF THE BAD-MADNESS

There are really crazy ideas/founders out there that can waste huge amount of your time and energy.

GATEKEEPING

Keeping low profile/anonymity if you want

SYNERGY IN TERMS OF DEAL MANAGEMENT/EXIT

Improved deal terms as a result of investing collectively

NETWORKING

Learn from each other, do business & have fun together.

GOT ANY QUESTIONS?

Are you interested in becoming an ivestor!

An individual who invests his own money, typically in small amounts, and typically very early in the cycle of a company – often known as a startup.

Group of individual investors organized together with the goal to invest in companies for profit. They normally support investees with other non-financial resources such as expertise, contacts and own time

1.The Average Annual Return from angel investing is 25 %; This is the best Investment Asset Class if done properly. For comparison here are the returns from other asset classes: Banks – 1%, Bonds – 3%, Stocks – 7%, Hedge funds – 10%, Top VCs -15%

2. Pro-active investor, adds value, has fun
Entrepreneurship without the responsibility

3.Angel Investing is about to take off – power of technology is doubling and costs is being halved
443 of today’s Fortune 500 were not there 60 years ago. Global startup boom expected to be the next global growth driver.

∙ 50% of startups fail completely
∙ 20% return original investment
∙ 20% return profit 2-3 times the investment
∙ 9% return a profit of 10 times
∙ 1% return a profit more than 20 times
∙ The law of big numbers – The average result obtained from a large number of trials (experiments) should be close to the expected value and will tend to become closer as more trials are performed
∙ So, the more companies we invest in the more likely we are to succeed to make profit

∙ Financially stable individual
∙ No more than 10% of free cash
∙ Pro-active investor. Adds other value than money
∙ Long-term view. This is not a short-term game
∙ High tolerance for risk/failure
∙ Even temperament
∙ Strong people skills
∙ Self-discipline
∙ Willingness to learn
∙ General love for startups

∙ Invest in the first deal they see
∙ Without thorough due diligence
∙ Outside domain of expertise
∙ At too high valuation
∙ Investing in fewer deals
∙ Not reserving capital for follow on
∙ No long term goal, patience
∙ Dragging the investment process unnecessarily
∙ Demanding too much
Angels should not structure the deal and equity terms in such way that founders loose interest/motivation and/or later stage investors are reluctant to join because of that.

∙ Have fun
∙ Entrepreneurship without the Responsibility
∙ The Joy of giving back
∙ The Social Side – Networking
∙ Keeping up with the world. You can learn a lot by putting your money in a business and by evaluating the pipeline.

CAC is looking for active members. If you are not making investments or contributing to the growth of the group, then the CAC is not the right group for you.

Angel investing by nature is a risky proposition. Like other investment classes, it has been shown that risk can be reduced by diversifying across a broad portfolio of angel investments.

∙ Successful angels Invest in at least 20 companies in the long run (some in 80)
∙ Average investment – 25 000 $ per company
∙ But Investment range can be from 5K to 500 K$
∙ Normally 5 to 10 angels are joining together
∙ 40 companies are reviewed to have 1 deal
∙ Individual angels receive 5-50 pitches p/m and groups 100 and more

∙ 30% from the deal flow are invited for a preliminary screening review
∙ 10% are invited to pitch to the full group
∙ 2% receive funding from at least some members of the group

The 7 Things You Think You Know About Business Angels

Investment as a process

The following steps should be used as a frame to help you understand the investment process dynamics as things might change on a case-by-case basis.

CEO Angels Club is proactively sourcing a good pipeline of various deals through the local startup and founders ecosystem including:

The Founders Institute graduates and network
CEO CLUB NETWORK
∙ Local VC ecosystem (startups too early for them) and other accelerators (startups graduating)
∙ Startup events
∙ Startup and professional organizations
∙ All members are a great source of new and interesting deals

∙ All deals are going through Website to fill in specific application form – LINK
∙ CEO and support staff make first screening, interviews entrepreneurs if necessary and offers it to Selection Committee (Board Members or another appointed by the Board)
∙ Selection Committee selects a few and then they are given the opportunity to complete the coaching process by CEO and make a presentation at a group meeting
∙ Coaching – CEO coaches startups to ensure that companies present the right information in an effective format
∙ Startup founders pitch in front of the members for 15 in with Q&A, followed by group discussions at group meetings
∙ All deals will be available for additional review to all members online all the time

∙ Group meetings are held 4 times per year (each Q). The CEO communicates the time and place well in advance to all members so they can plan it
∙ The meetings a private and limited only to members and the pitching startups
∙ Sometimes there could be additional educational presentations
∙ Starts with founders’ pitches and then groups discussions + networking/dinner
∙ They will normally start at 19:00 p.m. and be during a working day

∙ The group discussions are held only amongst angels; founders and guests are asked to leave.
∙ ‘GO or ‘NO_GO’ purpose of the discussion but also share additional information about market, product, founders and especially how to give the right feedback to the “NO” founders
∙ IMPORTANT – We use it as a learning experience for new members

∙ Once a startup is found promising, interested angels form a group of to further evaluate the opportunity and divide up the duties based on expertise and free-time preference
∙ The might also delegate the due diligence to be organized by the CEO (who will use external approved DD and LA experts)
∙ Investments are still being made on individual basis

∙ During the DD, interested investors will verify the statements made in the business plan, presentation, and financial projections. They will thoroughly research the team’s background and track record.
∙ CEO can lead the investment evaluation process as extra cost may apply to use a pre-selected partner (depending on the type of expertise required – e.g. cutting-edge technology expertise or just financial/feasibility audit)
∙ Members can choose to form their own DD committee and split the work amongst them selves
∙ CEO can still participate in negotiating the structure of the investment (along with the lead-investor)
∙ Voting as a group to make the investment or not is possible but individual investment decisions can apply; the important thing here is the opportunity to have equal split if we have a positive scenario – e.g. 10% equity are split evenly amongst 5 angels at the same evaluation at the same round
∙ An initial discussion of valuation and terms will happen early in Due Diligence to make sure the two parties are within working distance of each other and that Due Diligence can proceed

∙ The subset group that will participate in a given deal decides on the type of legal vehicle but normally it will be local Ltd or AD company
∙ General & Basic Term Sheet will be available to the members at no extra cost
∙ Once agreement with founders are reached and more funding is required/possible, interested angel group members might present a term sheet that defines the structure of the investment deal – including type of equity and board of director’s representation to ALL CAC members again

When all parties are satisfied with the terms and language contained in the term sheet, the deal can be executed. Closing the deal is only the beginning of the angel funding process. It is expected that investors will provide the company with access to their network of value-added contacts and offer their guidance for the growth and success of the venture.

It is up to the member to decide the level/type of next stage involvement after the investment round is closed – e.g. board seat/advisory role, etc.

∙ Nominee of subset group’s board seat
∙ Updates to the whole group with investees progress

Requirements to become a member

FINANCIAL RESOURCES

You declare that you have the financial resources to be an angel investor and understand the risk associated with angel investing.

RECORD

You have track records managing and building successful companies either as entrepreneurs or operating executives.

NETWORK

You form an extensive peer network of domain expertise and contacts for subsequent funding, talent and technology.

DEDICATION

You dedicate significant time and effort to our activities, including attending meetings, identifying and analyzing investment opportunities, helping other members.

BE READY TO INVEST

You agree to invest at least EUR 10,000 and participate in at least one investment per year.

RECOMMENDATION

You are recommended by another CEO Angels Club member following a meaningfull relation.

Included in the membership fee services

PROPOSAL FUNNELING (DEAL FLOW GENERATION)

PRE-SCREENING

MEETING ORGANIZATION – COMMUNICATION AND ORGANIZATION

4 MEETINGS PER YEAR – INCLUDES VENUE BOOKING AND MEALS

PITCHING ORGANIZATION

COACHING TO ENTREPRENEURS

INTRODUCTIONS (TO ENTREPRENEURS/OTHER ANGELS)

STANDARD TERM SHEETS

GROUP DEAL NEGOTIATIONS

ПРЕГОВОРИ ЗА ГРУПОВИ СДЕЛКИ

ONLINE DEAL-FLOW MANAGEMENT PLATFORM

Delivered ad hoc if requested and not included in the membership

DUE DILIGENCE

Due Diligence

LEGAL SERVICES

Legal Services

INVESTMENT ANALYSIS

Investment/valuation analysis

Become a Member

Our members pay an annual membership fee and sign a code of ethics. They are asked to attend at least 3 out of 4 club meetings anualy. They can also follow the deal-flow online.

If you are interested to apply to become a member check

A list of all members that would like to be disclosed can be seen bellow (coming soon)