INVESTING SCALE ANGEL REQUIREMENTS AND EXPECTATIONS
Investing Scale Angels must be “sophisticated investors.”
Investing in early stage companies involves a high degree of risk. Potential investors must independently assess the merits and risks of early stage investing and make all of their investment decisions independently. All investors are strongly encouraged to seek legal and other professional advice prior to making such investments.
Research from the Angel Capital Association and the Kaufmann Foundation shows a dramatic increase in returns from angel investing the more investments that are made. Investing Scale Angels will be encouraged to build a diverse portfolio of a minimum of six to eight companies during a three to five year period. To achieve this, Investing Scale Angels are expected to invest in two to three deals per year, but the requirement is to invest in at least one deal per year.
Investing Scale Angels are requested to be active participants in our investment process. This includes attending our screenings and forums and joining due diligence teams. To benefit from your engagement, we ask Investing Scale Angels to participate on two due diligence teams per year and/or lead a deal. Our suggestion is to participate with one deal team per year (typically, $25,000 investment per deal, until a minimum threshold of $250,000 is reached per proposed investment).
Angel investors are typically actively engaged with their portfolio of early stage companies, including board roles, providing advice and mentoring and connecting entrepreneurs to prospective clients, strategic partners and potential acquirers. Investing Scale Angels are frequently actively involved in providing this support.