ATA

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ATA

• Stands for.
• Atlanta Technology Angels

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The (Not So) Puzzling Behavior of Angel
InvestorsATDC Brown Bag SeriesKnox
MasseyATA Managing Director
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Panel Participants

• Clark Gilder
• Microsoft
• Zeewise, Invirtus, Pranama
• (GaTech)
• Wayt King
• Founder, N2 Broadband
• JD Degreebackground in law, engineering (GATech)
• David Cummings
• Founder, HannonHill-B2B software company
• Duke (?)
• Rhys Wilson
• Nelson Mullins
• ATA BOD
• ATA member, active investor since 2000

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What does Knox do?

• Full time Managing Director (2002-present)
• Contact for all Portfolio Companies
• Work directly with all prospective companies
• Work directly with all ATA members regarding ATA
  investments
• Run ATA office, source deals, due diligence, new
  membership, etc.
• Serves on the ATA Board Of Directors
• Serves on the ACA Board Of Directors

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Introduction to ATA

• ATA is a private investment group (not a fund)
  that actively invests in Georgia based
  technology companies, generally at the seed or
  early stage financing stage
• Founded in 1998, began investing in 1999
• SimplyHealth-now Connecture
• ATA Invests between 2M-4M annually
• Includes new investments and follow-on
  investments
• 56 current member investors/125 total lifetime
  members
• Microsoft, Google, PWC, AOL, IBM, UPS, Cienna,
  Turner, ITC, Scientific Atlanta, ATT, many
  other regional and local tech companies

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Every company is unique and important

• To Founders
• To Shareholders
• To Community
• To Customers

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However

• Not every company is equal when it comes to
  funding.
• Not every company fits an particular investors
  profile--no matter how great the company may be

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ATA Investment Criteria

• Technology (broad based)
• Georgia Based companies
• Seed/Early Stage Investment
• VC backable
• 250K-750K in each initial investment
• Able to invest through life of company (future
  financing rounds)
• 1M-3M total
• Equity Investment (no debt, not a loan)
• BOD Seat and/or Observer rights
• Will vacate at appropriate time if necessary
• A company has to meet certain criteria for our
  processes

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ATAs Processes

• Monthly screening process for potential companies
• 1st 2nd week of each month
• 4-5 ATA members
• We meet as a group once a month on the 4th
  Tuesday of the month
• Two 30 minute company presentations
• 2 companies present at each formal meeting
• 25 members at every meeting
• Follow up due diligence meeting within a week
  if interest is high

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ATA Information
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Why was ATA created?- Circa 1999

• Create wealth for investors and entrepreneurs
• Mentor new and repeat entrepreneurs
• Create world class, Georgia based companies and
  entrepreneurs
• Active Investing
• Control over individual investments
• Active partners versus passive LPs
• Bring outside institutional capital to Atlanta

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Additional ATA Facts.

• 38 Companies funded since 1999
• 18 in current Portfolio
• 25M into Atlanta marketplace
• Small 2001 fund, fully invested, now inactive
• 100 financings (initial and follow-on)
• 95 of ATA financed companies receive
  institutional capital
• Created 1000 jobs within GA

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Current ATA Portfolio

• Connecture
• SilverPop
• Servigistics
• Nexidia
• Invistics
• Qcept
• Oversight
• Beacon
• JMD

• Asankya
• Calorie Health
• OpenSpan
• TerraGo
• Zeewise
• SciHealth
• Aretta
• Pranama
• Websingularity

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Angel Money Defined/Angel Models
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What is Angel Money?

• Personal Money
• Checkbook Financing
• Local Focus
• High risk, but high reward
• Flexible Investment Horizon (4-10 yrs)
• 1X-100X Returns expected

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Current Angel models

• 4 Models
• Classic Angel (lone wolf)
• Classic Angel group( angel to VC )
• No VC
• Return of the incubator
• Y-Combinator
• Charles River QuickStart
• StartUp Camp
• Seed Camp, etc
• FBF

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Capital Gap/Angels vs. VCs
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The Need to fill the Capital GapAngel Market
circa 2007
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Angel Investing vs. Funds
Different points of reference for differing
investments
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Suggestions for entrepreneurs

• Start early
• Research the potential investor
• Be patient
• Realize that the investment is long term
• Communicate post investment

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How do you get the money?

• Management, Management, Management
• DO YOUR HOMEWORK on money!
• Use your contacts
• Start early
• 5. Be Patient

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Knox Massey

• Knox.massey_at_angelatlanta.com
• 404-526-6039