What is an Angel?
Angel Investors are high net-worth, accredited investors who, typically, have acquired wealth from decades of business success. They use a portion of their investment portfolios to provide emerging companies with seed and start-up capital through direct, private investments.
Their goal is to achieve higher returns than the public markets typically provide, and they are prepared to accept the higher risk involved.
Most angels are active investors – they mentor the companies in which they invest by contributing time and experience, as well as offering introductions to valuable contacts – because they enjoy helping entrepreneurs grow their businesses.
Most angels specialize in industries or technologies they understand, and invest only in companies within close geographic proximity. Angels may invest on their own, or with their peers, through an organized Angel Group.
What are Angel Groups?
Angel Groups are member-based not-for-profit organizations for accredited investors who live, work or have strong interests in a particular geographic area. These groups have many advantages. They provide investors with:
- Scheduled opportunities to assess quality, pre-screened, early-stage companies that are seeking capital;
- The ability to pool their funds with other Angels and spread their investments among several opportunities;
- A structured investment process called due diligence;
- Tools to support the investment process;
- A community of fellow investors with complementary skills and/or expertise; and Educational opportunities.
Interested in Joining an Angel Group?
Members of an Angel Group must be accredited investors. As well, they are expected to invest a minimum of $25,000 per year in start-up companies (either as a new investment or follow-on investment in an existing company).
There is an annual membership fee that supports the operations of the Group.
The best way to evaluate if joining an Angel Group is right for you, is to participate in an investor meeting. SWO Angels encourages potential members to attend up to three investor meetings and, audit a due diligence session to learn about organized Angel investing.
Intrigued or have questions, email firstname.lastname@example.org for a copy of SWO Angels’s membership package.