We do not make recommendations on investment. We screen ventures to make sure they meet the highest quality standards, but each member is responsible for his or her own diligence efforts and investment decisions.
- We focus on creating entrepreneurial successes in your local environment by cultivating ventures that our members engage. At the same time, we scour the country looking for great early stage opportunities for private equity investing.
- We fully review corporate documents.
- We fully review business plans.
- We fully review IP.
- We fully review market, company, and team information and backgrounds through searches and phone interviews.
- We have the management team submit to psychometric evaluation so we can get a handle on their individual and team strengths.
- We call upon the experts in various markets across the network to lend assistance in the review process to ensure we have reviewed all the critical variables.
- We spend a month with the team traveling to our various chapters and get to see them under pressure.
SharkTank has done a disservice to the industry by making everyone think angels swoop in and save inventors that are on their last leg by buying controlling interest in these businesses for pennies and then managing them. The reality is this is not a social welfare project. We are only looking strong teams with innovative companies and business models that have proven they can execute a business plan. We don’t want to run your company. We want you to run your company! We come in when you are ready for market launch. We typically buy between 5% and 25% of a company and invest between $50k and $500k.
We help companies by putting them in our competitive selection process in a Darwinian way. By working with the companies to refine not just their pitch, but by giving a 360-degree review of their business model, we help them sharpen their thinking about their own business. And, we work with companies we in which we invest to build strategic relationships, including future funding partners.
Our process is oriented around two rounds of funding. We intend to make smaller, fast investments at the late seed to early Series A stage. Then, we work with our portfolio company to prove their revenue model and lead or participate in a second larger round to get these companies past the new “Chasm of Death” called the Series A Crunch.
Go to our website, The Angel Capital Group -> Apply for Funding. This starts a formal process that we take very seriously. We require a standardized platform for sharing your deal information with our investors across the country. All our dealflow comes through this portal. It gives us the ability to quickly tell you our level of interest in your venture and it serves as the basis for our diligence reports to our members. If you apply, you will receive a response.
As a general rule of thumb, we do not sign NDA’s. And, few professional investors will – Why Investors won’t Sign NDA’s, Forbes. The reason is simple. We have to perform diligence on your company. We have to talk to folks that you recommend, and they further recommend, about you and you company. We can’t incur liability simply by performing the required diligence to ascertain your uniqueness in the market. Under rare circumstances, such as a need to protect critical, unfiled intellectual property, we will consider it.
The “I could tell you, but would have to shoot you” line does not work with investors. Our members all sign nondisclosure terms in their membership agreements with ACG, but remember, you are discussing your venture with hundreds of investors across the country. You should be prepared to discuss your uniqueness in a way that does not give a way the farm.
If you have any doubts, you should consider filing a provisional patent. You are always encouraged to talk to your IP attorney or patent agent in this process. There are numerous sites on the subject and several reputable online services that will assist you in doing so, such as: IdeaShares and the School of Invention
We are looking for “A” teams with “A” products that meet our criteria. We have to love your product. We don’t invest in “muffin-in-a jar” companies. But, once that hurdle is crossed, the critical information is knowing your competition and focusing on your marketing, sales, and exit plans. We have to love the team and we have to love their ability to execute and return capital. The most important thing you can show is how our money comes back with confidence.
Most of our investors are entrepreneurial themselves. They are founders of professional companies, successful entrepreneurs, and executives of corporations that understand the startup process and want to stay involved. They are ideal mentors for the management teams and for new members who wish to be successful angel investors. We have a process for mentoring aspiring angels to become successful, sophisticated investors, and it’s exciting and fun. Imagine yourself in the garage with Jobs and Wozniak and you wrote the first check. It is high risk, but high reward model. You don’t have to be a sophisticated private equity investor to join, but you do have to be willing to learn!
Angel investing takes time, money, and discipline. It is a fun way to seek better-than-market returns and see how our economy works from the ground floor. Clearly our investors want to make money. So, to a great extent, money is the yardstick to measure success. But, inside every angel is a desire to see deserving teams create outstanding companies and earn life-changing money. We all know when founders make money, we do. When it all works, it is a thing of beauty. The beauty of angel investing is you get to do the right thing and profit from it.
- We are a national syndicate of angel groups and funds growing in both geography and numbers. So, we match the best of your local and regional deals with the best deals available in the national market.
- We are the only angel group that offers the comfort of a fund and the flexibility of investment of a club.
- We cultivate local companies to create expertise and provide access to ventures you would never otherwise have access to outside of your local environment.
- At scale, all deals will be local to an ACG chapter. Therefore, we will have human resources local to each deal to monitor and assist each portfolio company.
- We provide a social environment for you to interact with your peers to share knowledge, expertise, and personal experiences.
- We screen deals for quality control.
- We ensure investor friendly terms.
- We provide strength and buying power of numbers.
- We provide the platform for ensuring a diverse portfolio.
- We provide a platform that allows you to invest as much as you wish when you wish to invest it without concern for venture specific investment minimums.
- We provide you current information on your deal pipeline, your portfolio, and its performance at your fingertips.
- We are active investors once the investment has been made. We work with the companies to identify their needs and search out member base for resources to help them reach their goals.
- We work with investors at the next level to both protect your interests and to ensure our portfolio companies get the resources they need to be successful.
- ACG will invest in either C-corp or LLC structured entities. We do not invest in S-corps.
- We invest in equity deals (typically preferred shares) through either Series Seed or National Venture Capital Association style terms.
- We will invest in Convertible Notes (into preferred equity) with discount, interest, and a valuation cap features.
- We will invest in Revenue Sharing (royalty style) deal structures.