The VC/PE Interviews Blog

largest study on the financial returns of Angel investors in North America, released in a new report at Nov the 12, by the Ewing Marion Kauffman Foundation and the Angel Capital Education Foundation, shows that angel investors participating in organized angel groups achieved an average 27% IRR on their investments.

Overall, this set of Angel investors affiliated with Angel groups experienced exits that generated 2.6 times their invested capital in 3.5 years from investment to exit. This return compares favorably to that of other private equity investments, including those of early-stage venture capital. Seven percent of exits generated returns above 10 times their initial investment.

Read the full report at http://www.kauffman.org/pdf/angel_groups_111207.pdf

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Robert’s Linkedin Profile            Robert’s “Business Buyer’s Manual”

Yaron Bazaz: Hi Robert, please tell us a little about yourself

Robert Berman: “Hi Yaron, I’m a born and bred Canadian and proud of it. I was lucky enough to receive my business education in two very dynamic companies. The Plessey Company which was headquartered in the UK and Rockwell International in the US. I originally joined Plessey in their sales department, but not long afterward moved into their acquisition and special operations group.

Plessey was a conglomerate of more than 80 companies with manufacturing plants in 56 countries. The product lines were very broad; telecoms, aerospace, electronic components, sewage pipe, consumer electronics and military electronics just to name a few. The acquisition and special operations group at Plessey had the total acquisition mandate, from finding potential acquisitions, negotiating terms, due diligence, and integration. As well, the group was the corporate trouble shooters, coming in to support operations that were having problems in any area, marketing, production, accounting and human resources. If a Plessey operation, anywhere in the world, lost a senior staff member due to sickness or resignation, someone from the special operations group would be installed as the interim manager.

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Daniel Cohen is a Partner at Gemini Israel Fund , specializing in Internet and enterprise software investments. He sits on the Board of Gemini companies Adap.TV, eSnips, SupportSpace and Verix (formerly Business Events). Danny recently relocated from Israel to Gemini’s Silicon Valley Office, managing the fund’s operation in the US and providing portfolio companies with a direct link to the technology and VC activity in California. In addition, Danny led the creation of Gemini’s Internet Lab, which co-invests funds in Internet companies together with Lightspeed Venture Partners. He currently sits on the Board of the Lab. Previously Danny was a Principal at Gemini, responsible for the Fund’s deal flow and deal sourcing process. Danny began his career as a software engineer at Scitex and was later moved from development to product management at Sagitta and assumed responsibility for the product management team. In 2000, Danny joined the strategic marketing department at Commtouch and was promoted to Sr. Director of Product Marketing. Danny has a BA in computer science and psychology from Tel-Aviv University and an MBA from INSEAD, France.

Listen to the Interview with Danny:

 

 Daniel Cohen Interview for the VC/PE Interviews Blog by Yaron Bazaz: Play Now | Play in Popup | Download

Danny’s favorites business books:

Links:

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Jacob Ner-David is the Managing Partner of Jerusalem Capital I, a seed/early stage VCF focus on Israeli “Technology Enabled Services” companies. Jacob has been a successful serial entrepreneur for more than a decade, creating billions of dollars in shareholder value. In 1995 Jacob founded Ambient (OTCBB: ABTG), a pioneer in the field of data communication, today a leader in the BPL (Broadband over Power Lines) industry. Jacob served as CEO of Ambient from inception until after its IPO in 1998. In 1996 Jacob co-founded Delta Three (NASDAQ:DDDC), one of the first commercial Voice over IP service providers. Jacob served as executive chairman of Delta Three from its inception until after its NASDAQ IPO in 1999. Under Jacob’s leadership Delta Three reached a market cap of over $1.5 Billion. In 1999 Jacob founded NomadIQ, a developer of wireless applications, and served as Chairman and CEO from inception until its acquisition by Omnisky for $42 million in 2001. In 2004 he co-founded DoubleFusion, a media mediation company. In addition, Jacob has also sat on numerous corporate and not for profit organizations. Jacob has a B.A. from City College of New York, and a J.D. from Georgetown University Law Center. He lives in Jerusalem with his wife Haviva, and their five children.

Listen to the Interview with Jacob:

 

 An Interview with Jacob Ner David [ 22:08 m]: Play Now | Play in Popup | Download

Links:

the Jerusalem Capital Jacob’s Blog Jacob’s full Biography

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Bob Chaworth-Musters founded in 1997 the Angel Forum, which is now the oldest Angel group in Canada and is held semi-annually in Vancouver. He is also a founding member and the BC Board Director of Canada’s National Angel Organization (NAO). Prior to that Bob was with CIBC - a major Canadian financial institution with executive responsibilities ranging from corporate and investment banking to private banking in Vancouver, London, England and Bahrain in the Middle East. He also was involved with a seed venture capital fund and a pre-shipment finance fund with the B.C. Trade Development Corp and a discretionary investment management firm for private investors. Bob has lectured on investment funds and advised mid-sized companies, financial institutions and commercial crown corporations. For the past 8 years he has been involved with an electricity and natural gas trading company. He was a Charter Student at Simon Fraser University, earning a B.A in Economics and Commerce and later a M.Sc. in Business Administration from Boston University.

the Angel Forum     

Yaron Bazaz: Hi Bob, How did you find yourself involved with early stage venture capital activities?

Bob Chaworth-Musters: “I was working with a BC Trade Development company where I was involved with a seed venture capital fund and a pre-shipment finance fund. The Company was closed down and I persuaded BDC to become a joint venture partner in the Angel Forum.”

Y.B: In 1997 you founded ‘The Angel Forum – Vancouver’ - now the oldest and largest angel group in Canada. What market pain you identified at the time that motivated you to found The Angel Forum?

Bob Chaworth-Musters: “At BC Trade I was coming across a lot of companies that were too small for institutional venture capital funds and too big for love money. There was no available solution to the problem.”

Y.B: Tell us about the Angel Forum

Bob Chaworth-Musters: “The Angel Forum - Vancouver semi-annually introduces emerging companies to private equity investors. As one of the oldest & largest angel groups in Canada with 100+ investors, its sponsors include leading organizations in BC such as BDC-Venture Capital, PricewaterhouseCoopers, Fasken Martineau and TSX Venture Exchange. Its primary objective is to facilitate investment in emerging companies and presenting companies have raised over $24 million directly through the Forum. Since 1998, Investor Ready seminars for entrepreneurs have been available and now Investor workshops are offered.

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Ean H. Jackson is the President of Analytics Marketing Inc., a strategic consultancy and a provider of business development and fund-raising services for growing businesses. He also serves on the faculties of Simon Fraser University, University of Phoenix and the University of British Columbia where he teaches in the MBA programs. He speaks frequently on business and technology issues and serves on the boards of numerous industry and not for profit organizations. As a mentor for New Ventures BC, he coaches entrepreneurs and startup companies. He is an active angel investor in the social software and Web 2.0 area. His educational background includes an undergraduate degree in Arts from the University of Western Ontario, a graduate degree in Electrical Engineering from Southern Methodist University and a certificate in Internet Marketing from the University of British Columbia. Live with his family in North Vancouver BC.

Ean’s Blog     Ean’s Linkedin Profile

Yaron Bazaz: Hi Ean, How you find yourself involved with early stage ventures?

Ean H. Jackson: “Before having children, my wife and I decided we would take a year off to travel in Asia and Europe. In the months before our departure, a friend asked for some help with sales for his 2-person ISP (Internet Service Provider) in exchange for shares. I gladly complied, then left on our trip and forgot about the shares. More than a year later when I returned home, the company went public. When I read about it in the business pages, I casually remarked to my wife that we made more money traveling than working during the entire year before we left. She pointed out I’d forgotten a zero. Becoming a paper millionaire was positive reinforcement for my first startup experience, but after having participated in about 20 more since, I have to say that I truly love the excitement of the early stage business.”

Y.B: One of your areas of expertise is Web 2.0. How do you feel these technologies will impact the way we market products and services?

Ean H. Jackson: “I’ve been passionate about the software and telecommunications space for over 20 years. Over the years, I’ve participated in several waves of technology innovation that have led to the creation of the Internet as we see it today. (E.g. network infrastructure, commercial ISPs, website development, online marketing.) The current wave, now widely called Web 2.0, looks at the Internet as being a utility that can be accessed through a browser, anywhere, anytime by just about anyone. I’m very excited about how social networking software is making it possible for people from around the world to share and collaborate. I believe there are tremendous opportunities for investors who place their bets carefully in the Web 2.0 space.”

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Ephraim Shoham was nominated as Israel’s Trade Commissioner in Canada in September 2003 and ended his tenure in August 2007. Mr. Shoham’s professional experience began in 1965 when he joined the IDF (Israeli Defense Forces). He then joined Israel’s Ministry of Defense, in charge of Research and Development programs, coordinating multi-disciplinary projects with Israeli and foreign entities. He retired from the IDF with the rank of Lieutenant Colonel. Over a period of 17 years he worked at Israel’s Industrial Cooperation Authority (ICA), entrusted with monitoring, initiating and supporting industrial cooperation activities between Israeli industry and foreign suppliers. From 1990 - 1994 he served as Consul and U.S. Director of the ICA in New York, responsible for industrial cooperation between Israel, USA and Canada. Then from 1996 - 2003, he held the position of Director General of the ICA. Mr. Shoham holds an MBA from the University of New Haven. He attended the Open University, the Israeli Labor Productivity Institute, and the Israeli Defense Force’s Academy of Command and Management. He also attended Bar Ilan University where he received his BA in Public Administration and Political Science. Mr. Shoham is married to Ariela and they have three children.

Israel ’s Ministry of Industry, Trade and Labor, Foreign Trade Admin.

Yaron Bazaz: Hi Ephraim. Two month ago you ended your four years nomination as the Israel’s Trade Commissioner in Canada (2003 -2007). How you sum up your tenure?

Ephraim Shoham: “For me to come to Canada was a great challenge, considering the insufficient level of trade between to two countries. Israel and Canada tend to focus their trade efforts toward other markets. Israel export mainly to Europe and the US and the Canadian industry sell almost solely to the US and not to other countries, including Israel So in those four years I can say the level of trade increase dramatically. Now the level of trade is more than 1.2 billion USD a year which is more then double the level 4 years ago (and not including a one billion US $ a year in Israeli investment in Canadian real estate y.b).”

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I had just published the following question in LinkedIn:

What is your recommended business book?

In the surveys posts I will present relevant questions for the VC and PC community, gather answers and present them with the names of the answerers.  So… this is my first survey. You are welcome to send a comment for this post and share your own preferred business books!  Half an hour later i got the first answers (see below). The full survey with tens of recommendations will be published during the upcoming week. 

Chris Grayson: ·         The Long Tail: Why the Future of Business is Selling Less of More by Chris Anderson ’The Long Tail…belongs on your shelf between The Tipping Point and Freakonomics, offering great insight into the next generation of internet revolution and opportunity.’  Reed Hastings, CEO Netflix; ‘A brilliant and important book - as i-intelligent as it is e-entertaining.’ Robert Thomson, The Times

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