BRINGING

ANGEL
INVESTING
INTO FOCUS.

© 2008 North Venture Partners, LLC | www.dontgosouth.com | www.northangels.com

1.0

Angel investing is
a steep challenge.
Don’t make it any
harder than it
already is.
After forming Angel investment groups to share labor and risk, the challenges
of early stage investing still haven’t seemed to disappear.

Finding innovative new venture investments and then getting a group of

critically-thinking, high net worth investors to all agree to move forward isn’t
easy, but it certainly can be easier…
 Shouldering All The Weight? We Figured.
North provides services and software to early stage private equity investors
(Angels). Our goal was to reduce friction in the early stage venture market so
that the largest possible pool of innovative new companies could grow faster
and create that desirable blend of both economic and social value.
2.0

Most Angel groups are strained under

the workload that comes with
investing in a complex and risky
market. Set your group free by
outsourcing your heavy lifting.
Far too often Angel groups are so occupied with executing group marketing,
closing sponsorship sales, driving membership growth, managing investment
transactions, and coaxing members to volunteer for various tasks, that they
routinely struggle to find the time to filter through and perform effective due
diligence on submitted plans.

If pooling resources into Angel groups can make investing more efficient, why
stop there?

By collaborating we can empower innovation together and make Angel

investing more rewarding for everyone.
 An Improved Vision For Angel Investing.
Three years ago North was created by a group of former Virgin executives who
left the Richard Branson empire to focus on building holistic solutions for the
early stage investing marketplace. We truly believed that by empowering both
private investors and forward-thinking entrepreneurs, we could pave a
revolutionary new path for fostering tomorrow’s innovation.
3.0

North is a boutique private equity

advisory firm providing Angel
investors with world-class due
diligence and analysis services.
We spent nearly a decade researching and working with investors and
entrepreneurs to find which key factors influence the success of early stage
ventures, and through our experiences we identified a powerful process to
apply this knowledge.

By building a solution that addresses the key friction point that constrains the
Angel investing market, we believe that we can immediately transform the
industry in a remarkable way.

But don’t take our word for it, let the research speak for itself.
 A Long Hard Look Pays Off For Everyone.
Deep due diligence is crucial for investing success. It’s what guides investor
decisions, builds trust and confidence, and ultimately determines the overall
success of the investment. Effective due diligence can be both expensive
and exhausting, but to get investors motivated, nothing less will do.
Looking at the numbers from the Kauffman research, it’s no wonder why.
4.0

“Comparing investors who spent less

than the median 20 hours of due
diligence and investors who spent
more, shows an overall multiple
difference of 5.9X for those with high
due diligence compared to only 1.1X
for those with low due diligence.”
Excerpt taken from “Returns to Angel Investors in Groups”, a comprehensive study of 539
Angel led investments. Robert Wiltbank, Ph.D. and Warren Boeker, Ph. D., 11/2007.

Whether you’re an entrepreneur betting your career, or an Angel investor

betting your capital on an exciting new venture, what type of return on
investment are you seeking?
590% or 110%?
 Delivering World-Class Due Diligence.
North provides resources that individual investors or groups could rarely afford.
If due diligence is the key to preventing losses, and unlocking higher returns;
Why not leverage a dedicated team of analysts?
5.0

North combines human analysts, a

collaborative due diligence
methodology, and data driven software
tools for scoring, evaluating, and
comparing new venture investments.
The North methodology for evaluating new ventures
is based upon the combined experience of a pool of
world class investors and entrepreneurs.

Our unique collaborative filter based due diligence

methodology enables constant process improvement
based on input and feedback from seasoned industry
leaders, investors, and entrepreneurs.

In the end, we are implementing this filter to evolve

and improve venture investing for everyone. This
democratic approach to our methodology enables
Angel investors to make highly informed decisions
quickly, and with confidence.
 Up-Close Evaluation; Nothing Less Will Do.
Conducting market research, background checks, reference calls, and the
financial modeling that are required to effectively understand a new venture is
back breaking work. North uses software, systems, and processes to produce
reliable, high quality due diligence reports quickly and consistently.
6.0

From deconstructing the financials to

target market analysis; 80 elements of
each venture are reviewed in detail so
investors and entrepreneurs can make
decisions based on reliable data, not
just intuition.

20+ Pages of Rigorous Insights & Scoring Comparative Graphing & Performance Chart &
Due Diligence Across 8 Categories Written Analysis Executive Summary
 Smart Decisions Based On Data, Not Drama.
Utilizing a combined human and database-driven due diligence process, North
analysts score ventures across 80 elements, providing finely tuned data
backed analysis and insights across all critical aspects of each venture. North
also contracts with Lexis Nexis® for additional background checking on
potential issues that could affect the investment decision.
7.0

The North Venture 360 Report cuts

through the subjective spin of any
business plan, arming investors with
both human insights and the supportive
data they need to make a more informed
‘go’ or ‘no go’ decision.
Eliminate Risk: Entrepreneurs and investors might not
like what the report has to say, but everyone should
realize that neither investors or entrepreneurs are well
served by spending weeks, or months trying to move a
venture forward if it is fundamentally flawed.

Accelerate The Venture: An objective third party

analysis can either quickly generate meaningful
conversations with investors, or it can give an
entrepreneur the direct and honest feedback they need to
dig in and re-tool their business to put it on the right path.
 Flipping The Cost/Benefit Relationship.
Historically the cost of deal screening and due diligence has rested on the
investor’s shoulders. Given the most common response entrepreneurs hear is
‘No Thanks’ in the form of a template rejection letter, why would it warrant any
investment on behalf of the entrepreneur?
8.0

By enhancing the value an entrepreneur

receives from the application process
(20+ page analysis of their venture’s
strengths and weaknesses), investors
can now flip the cost of due diligence
onto the shoulders of the ‘sell side’ of
the equation.
The value of the Venture 360 Report is clear for entrepreneurs, it’s an insightful
tool that gives their venture the best possible shot at being considered for
funding. Worst case, if rejected, the report provides triage of what they need
to do to fix their business and make it more ‘investor ready’.

When entrepreneurs compare the Venture 360 Report cost to the expense of
trade shows, travel, consultant fees, or investment banking fees, the value is
clear and the decision is uncomplicated.
 Chances Are We’ve Got You Covered.
North covers roughly 80% of all new ventures. While our roster is deep enough
to cover the most common areas of innovation, we can’t provide reports on
everything under the sun. Venture 360 Reports are completed in 7-10 business
days and are scheduled on a first come first served basis.
10.0

North provides Venture 360 reports

across 7 broad markets enabling us to
cover about 80% of submissions.
North Market Coverage
Media & Entertainment
Consumer Products & Services
Software & IT Services
For each industry there are various
economic models, industry standards, and
consumer behaviors. Each of these unique
factors is incorporated into the venture
evaluation. The strength and accuracy of the
North database of reviewed ventures is
enhanced by our market segmentation.

Mobile Devices & Applications

Note: The overall scoring and analysis output
Business Products & Services
is calibrated to seek the greatest possible
economic return regardless of market sector.
Retail / Distribution

Sustainable Industries / Energy

 Team Up With North Without Missing A Beat.
Angel groups use North to filter more investments and increase the quality of
their yield. Minimize risk by working with North for consistent and fast venture
analysis. North offers Angels a software licensing program that can enable your
team to access North tools to produce reports at a reduced cost.
9.0

North works closely with Angel groups

to ensure that we’re seamlessly
integrating with their existing venture
investing process to increase deal
throughput and improve yield.

Typical Angel Group Deal Filtering Process:

Overcome resource limitations by

working with North to quickly create
due diligence analysis reports.
70

30 +6
+3
8 1
4
Monthly Submissions Initial Review Secondary Review Due Diligence Investment
 Heading North Is Easier Than You Think.
North provides confidential Venture 360 Reports for Angel groups, independent
investors, investment bankers, and entrepreneurs that are looking for objective
insight and feedback on their venture investments.
11.0

Your Next Move: Email us to request a

sample Venture 360 Report right now
by clicking here.

Then take complimentary test drive:

Qualifying Angel groups are eligible
for one free Venture 360 Report.
We are happy to answer any questions you may have. Email us by clicking on
the address below, and we’ll set up a time to chat:

northventure360@dontgosouth.com

Read more about what we do at: Northern California Southern California

www.dontgosouth.com 1729 Telegraph Ave.
Oakland, CA 94612
4316 Melrose Ave.
Los Angeles, CA 90029