SCALE ANGELS REQUIREMENTS AND EXPECTATIONS
All 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. 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, 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.
Scale Angels are expected to be active participants in our investment process. This includes attending our screeenings and forums and joining due diligence teams. Our expectation is that Scale Angels will participate on two due diligence teams per year and/or lead a deal. The requirement is to participate on one deal team per year ($25,000 initial minimum per deal).
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. Scale Angels will be required to be active in providing this support.