The Impact Angel Group Real Impact. Real Returns

Our Due Diligence Process

The Impact Angel Group

Real Impact. Real Returns.

What are we looking for?

1) Experienced leadership 2) A HUGE market 3) A valuable technology 4) Proof that someone will actually buy the

product or technology 5) A quick and clear path to market 6) A quick and clear path to exit 7) The ability for investors to realize a 5 –

10X return on their investment The Impact Angel

GroupReal Impact. Real Returns.

How much due diligence?

Has due diligence been done by others?

Qualified reference checkers in place?

How much are we investing?What is the timeline?



Our Process



The Executive Summary

Executive Summary Template and Gust.com applications accepted

Typos?Delivered on time?Understandable? Are they responsive?



The First Meeting

Answer initial questions from executive summary

Get to know the entrepreneurCan they communicate effectively?Can you work with each other?



The Second Meeting

Second meeting checklist Pursue more sensitive informationDeeper management assessment:◦How do they handle feedback?◦Have they delivered as promised?◦Are they responsive?



Valuation

Is it logical? Does the math add up?What are their assumptions?Have they done research to validate their assumptions?

Are there similar exits?The Impact Angel


Other Steps

Reference ChecksCustomer CallsInvestment Documentation Review

Venture Board ReviewDocument ReviewCriminal Background Checks



BUT….



TEAM



Reference Checks

Qualified Reference Checkers

Personal and ProfessionalTry to get one away from reference



Reference Questions:If you were a mentor to or manager of this person what

suggestions would you give this person to perform even better in the future?

What surprises will we find (good and potentially not so good) when we start working with this person?

Can you tell me the one thing this person did that significantly impacted the organization they were working with?

Now tell me about a project that didn't go so well, or one where this person had to overcome some barriers. What were the problems, and how did they handle them?



Other Team Tools:

Pairin.comBe an AdvisorBoard Member for a Day



Team Success Indicators

Are they prepared?How do they handle feedback?Can they control the meeting?How do they interact with the team?

Are they focused in meeting?Do they have a focused strategy?



Team Success Indicators

Market understandingAwareness of competitionClear vision?Realistic milestones?



Top Due Diligence Tips:

Ask an expertAsk the marketBecome a userTrust others, but not too much

TRUST YOUR GUTThe Impact Angel


Managing Due Diligence:Confidentiality◦Only share when interest is expressed◦Ask for permission

Non-reliance◦Disclaimer◦Verbally communicate

Slander/Libel◦Avoid email◦Share opinion with others, but be careful



Documents

The Impact Angel Group Real Impact. Real Returns