Angel groups benefit entrepreneurs through exposure to a wider set of potential investors, and a structured process that facilitates a relatively quick and efficient investment decision. Angel investing represents a significantly large and growing portion of early-stage capital available to startup companies. We encourage you to read the Angel Investing 101 andConsidering Valuation sections if you are new to angel investing.
Is an Angel investment right for me?
It is important that you understand who we are, how we operate, what we look for in potential investments, and what we expect in return. Angels typically invest between $25,000 and $100,000 per transaction individually, and from $250,000 to $750,000 as a group. Angels invest in one to four transactions per year. On average, angels are patient, with an average term for holding an investment of eight years. For the risk and added value they provide, angels seek returns of at least ten times their investment. SWO Angels receive a large number of business plan submissions each month. Our funding process involves a thorough screening process where approximately 2-3 companies per month are selected to present to our members for funding consideration.
What is an Angel looking for?
We evaluate based on management team, market opportunity, growth potential, as well as other factors. To stand out from the rest of the crowd, make sure that you meet our investment criteria and that you are fully prepared with a polished business plan and presentation.
What is an Angel Investor?
Angel investors are high net-worth individuals who invest in high risk, early-stage ventures by reserving a portion of their total investment portfolios to provide emerging companies with seed and startup capital through direct, private investments. Their goal is to achieve higher returns than the typical public markets provide. Most Angels are active investors – who contribute their time and experience, as well as offer introductions to valuable contacts essential to the company’s success – because they enjoy the thrill of helping entrepreneurs grow their businesses. To maximize the value added, most angels specialize in industries or technologies they understand, and invest only in companies within close geographic proximity.
What is an Angel Group?
Angel investor groups vary in structure, from formal to informal. Formal groups follow strict participation requirements that guide members’ minimum investment activity and event attendance. Some groups pool members’ capital to make investments on the group’s behalf, while others allow individual members to invest in specific deals of interest.
Learn more about our Angel Group.
What do we look for in companies?
We invest in companies that offer exceptional opportunities for high returns on investment. This usually implies companies with the potential to achieve high growth, strong market position, and sustainable advantages. We generally invest in companies that we believe have the potential to grow to more than $10 million in annual revenue within five years. This should be in either a developing market or in an existing market with national scope.