Why be part of Angel Capital Group as an investor?

We have amassed hundreds of great minds, subject matter experts, successful entrepreneurs, and venture-style investors from around the nation who share diligence, expertise, experience, connections, and industry insight on ventures to identify irresistible opportunities. If you wish to learn, learn from the best. If you wish to participate, work with the best. Join us or start a chapter.

In 2014, accredited angel investors directly invested $24 billion into nearly 70,000 early-stage companies, according to estimates by the Center for Venture Research at the University of New Hampshire. That’s more than all other venture capital firms combined were able to deploy in early and seed stage deals during the same year.

That’s jobs. Life-changing (and life-saving) technologies. More sustainable products. Wealth creation for a new generation of spirited Americans. All this at a time when the national focus was on American decline, outsourced and obsolete jobs, and failed politics.

Front Line Of Innovation

How did this industry evolve and where are we now?  Our CEO, Eric Dobson, presented at the inaugural IdeaCon Expo give a brief history of the angel industry.

In short, Angels are the true front line of innovation in America. Though many Angels enjoy the 20+% annualized returns offered by early and seed stage deals, the motivations run much deeper. Love of community, love of entrepreneurialism, and a passion for growth are all part of the appeal. And while Angel stereotypes cast an image of some genius “Master of the Universe” living in Silicon Valley, the fact is that Angel investors operate in nearly every city across America.

Angel investing isn’t about shooting for the moon. It’s about playing the numbers and working the odds. Angel Capital Group was founded to create an environment where Angels could experience all the thrills of funding their own futures, and make money doing it.

Membership Overview

We have learned lessons from both Moneyball and Steve Jobs – “if you want to beat the market numbers, you have to “think differently”.” We embrace the role and function of a traditional angel group, but think differently.

Access To Deals

Through membership in the Angel Capital Group you will receive all the services of a major private equity firm while still maintaining total control over your money.  Whether you are located in a city where we have a chapter, fund, or you want to be an online, virtual member, our services will give you access to some of the best private companies in the country.  You can review our new member packet and ACG overview document for additional membership and process information.

Our members pay annual membership fees of $1,500 and are asked to commit to invest at least $10,000 per year.  We are seeking individual investors who want to invest between $20,000 and $100,000 per year in startup ventures, and understand the high risk nature of these ventures. If this describes you, please contact one of our Chapter Presidents about an invitation to a meeting.

We hope you will join us in funding the future.

Sign-up and start investing today!

What We Believe

We believe in investing smaller amounts individually in larger numbers of companies – statistically, this is a winning strategy.

We believe in investing in middle America because we find outstanding teams, who no longer have to live on a coast to access resources to create highly productive companies, at valuations that make sense.

We believe that standardized, professional diligence is the key to selecting the very best deal flow in the nation and a winning portfolio.

We believe our speed of investment (two months from yes to a wire) is a key advantage for our network.

We believe our model is ready to scale across the US to create the first “community equity banking system.”

We believe that participation in an established angel group is key to reducing your risk in angel investing.

We believe this is the way we restore America’s economic greatness one community at a time.

If you believe these things, please contact us about becoming a member. To learn more, keep reading or just get in touch. Our monthly chapter meetings are the best way to experience what true Angel investing is all about.

Benefits Of Membership

We love to let our members do the talking on this one. The following list consists of common statements from members of our local network chapters on why they joined and what they get out of membership with Angel Capital Group:

  1. It’s a great way to stay connected to innovative, cutting edge developments in business, healthcare, and more.
  2. I get to meet and build relationships with other like-minded, successful entrepreneurs.
  3. I gain the benefit of many experienced investors from various backgrounds when considering whether or not to invest in a deal.
  4. I see better deals through a group than I could see through my personal network.
  5. I can send deals that come to me personally through Angel Capital Group and gain access to the due diligence, legal, accounting and deal structuring fees paid for through my membership fees, and also access more capital than I could (or should) personally contribute to a deal.
  6. I get to see deals from everywhere in the country, not just in my backyard.
  7. Dedicated staff handle all the details so I can focus on funding exciting entrepreneurs and innovations.
  8. Companies I invest in have access to the professional networks of every Angel Capital Group member, as well as staff resources and connections.
  9. Investing alongside other Angels lets me deploy smaller amounts of capital across more deals. I don’t have to dump all my Angel money in a small handful of deals.
  10. DEMABuilding strategic partnerships with complimentary networks and associations to bring value to the members, such as the Domestic Estate Management Association.

Our Services

Every service we offer is designed to promote our portfolio strategy: we want our Angel members to spread their chips evenly across 20+ deals of every type, from every industry and across multiple regions. No one can pick winners, but we can all put the math in our favor.

Reasons to avoid this portfolio strategy typically involve high legal, accounting, and due diligence expenses, lack of deal flow, inability to provide sufficient capital to an entrepreneur, and lack of information post-funding. When we set up Angel Capital Group, we knew we had to create a suite of services that empowered the individual Angel investor to adopt an early stage portfolio strategy that consistently generates results. Here’s what we offer:

  • Deal Sourcing

  • Managing The Pitch

  • Due Diligence, Legal, Accounting & Deal Structuring

  • Funding

  • Portfolio Tracking & Management

Deal Sourcing

We source hundreds of deals each year from nearly every region and industry by leveraging multiple locations and a national brand presence. These deals are screened by our in-house analysts; only the most compelling, potentially game-changing deals are passed on to our members for review.

Due Diligence, Legal, Accounting & Deal Structuring

Membership fees cover all due diligence, legal, accounting, and deal structuring expenses. Our in-house team also manages theses processes to ensure a streamlined investing experience. We’ll say it again: everything is covered under your annual membership fee.

Managing The Deal

We ensure that funding applicants provide the necessary financial documentation, executive summaries, and other due diligence items Angels need to make informed decisions before the presentation. Meeting attendants also receive our Chief Financial Analyst’s comprehensive review of each deal opportunity to supplement formal presentations.

Funding

Each investment round is made through a unique special purpose funding LLC to protect our investors. This drastically improves our ability to stay connected and benefit as portfolio companies move through additional rounds of funding.

Portfolio Tracking & Management

Every deal is entered into our online portfolio management platform (powered by Venture360). Angel Capital Group managers as well as portfolio company financial contacts provide investor updates, changes to financials, and performance data over time so that Angels can remain informed about their overall portfolio holdings.

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Why Angel Investing?

When someone knows you’ve got money, they’re after you.” -Angel Capital Group member

The Noblest Investment

All the financial strategies and profit motives aside, individuals that excel with Angel investments have a single undeniable quality: they’re enthusiastic about entrepreneurship and what small businesses and innovative ideas bring to communities and the world through jobs, new technologies, lifesaving medical treatments and devices, and ingenuous products. Unlike anything else you can do with your money, Angel investing offers the opportunity to experience and invest in innovation directly. We truly are funding the future.

Diversification

We don’t advocate for putting all your money in early and seed stage investments for the same reason we wouldn’t advocate for putting an entire 401(k) into Facebook stock. It’s not safe. But diversification is more than just spreading wealth across multiple publicly traded companies. Post-IPO is just one of many stages of growth, but it’s where most people hoard their personal capital. And let’s face it: by the time a company has gone public, 9 times out of 10 they’ve already experienced their meteoric growth years and are settling down to the equivalent of a nice middle-aged existence.

True portfolio diversification requires a pragmatic spreading of the proverbial chips across all stages (public and private), multiple industries, multiple regions, and multiple investment types. But the barriers to entry for investors seeking all of the benefits private equity has to offer are great: the typical venture capital firm has a minimum investment amount of $1,000,000, charges average annual management fees of 2%, and takes 20% of the profits off the table when exits occur. It’s safe to say no one just “tries out” private equity. You lock up a substantial amount of capital for a very long time. None of this encourages diversification.

Angel investing, by contrast, consists of much smaller bets on a much wider variety of deal types, industries, and regions. Done through a group like Angel Capital Group, investors can invest as little as a few thousand dollars per deal if they wish, relying on the group’s collective fundraising to attract higher quality deals and fully fund ambitious companies. That means that while each individual early stage investment carries a certain amount of risk, savvy investors can achieve a stable portfolio with high growth potential by placing a high volume of scattered bets. It is this strategy that consistently achieves 20+% returns for Angel investors, but it requires patience, level-headedness, consistency, and a group dynamic that incentivizes the longview.

Upside Potential

Percentage-wise, the most growth ever experienced by any company occurs between startup and the Series A financing round–about $1.2 Million. Friends and family members tend to front the first $50,000 to $100,000, though on occasion certain wealthy families may contribute more. On the whole, though, Angel investors are responsible for the continuity and development of businesses between $100,000 and $1.2 Million. Venture Capitalists have difficulty reaching below the $1 Million mark and maintaining success rates without incurring excessive due diligence costs, and there’s only so much money one can raise from their personal network. Simply put: without Angels, nothing would get done. (OK, maybe some things, but not nearly as quickly and a lot of great ideas would die on the drawing board.)

The stats are fairly well known: about 1/3rd of Angel investments go belly up, 1/3rd will do OK, and Angels shoot for 10x return on capital on the rest to achieve total portfolio IRR in the 20+% range. Great groups that facilitate diversification, leverage members’ wisdom and insights, and provide full-cycle representation and monitoring as portfolio companies progress to potential exits, can mitigate some of the risks while maximizing the potential for higher returns. But the diversification strategies laid out above are by far the biggest factor in protecting upside potential.

So how does 20+% compare? It’s approximately equal to the returns promised by venture capital firms, while the S&P 500 over the last 10 years averaged 11.8%.

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