Why Investors join an Angel Investor group or network
Solo Angel Investing is Time Consuming
Individual angel investors have little support for due diligence, deal structuring, diversification through co-investing and then post investment collaboration all the way to a exit. These are the challenges:
- Sourcing of good quality deals takes time
- Meeting entrepreneurs takes travel and meeting time
- Reading investor packages is time consuming
- Due diligence is usually 40+ hours per deal
- Need opinions from friends and industry experts
- Term sheet negotiations
- Legal hurdles and cost
- Post-investment management
Improving Angel Returns
A number of studies in recent years point to ways to improve return on investment.
Tracking Angel Returns, Wiltbank and Brooks, November 2016:
- Angel groups average 2.5x return (22% IRR) and 4.5 years before exit
- 30 percent of exits returned more than the orginal investments
- 10% of all exists generated 85% of the returns
- Bigger wins take 9-10 years to exit
Returns to Angel Investors in Groups, Wiltbank and Boeker, November 2007:
- Time spent on due diligence translates in better investment outcomes
- Investors who spent more than 40 hours saw a 7.1 multiple
- Investors who spent 20 hours a 5.9x and less than 20 hours a 1.1x
- High industry expertise in the area of the invested venture delivered twice the returns
- A higher interaction with portfolio companies delivers a higher exit for 3.7x
- A lower interaction of a couple of times per year delivered 1.3X
Join the Angel Forum to Collaborate
- Pre-screening improves quality of deal flow
- Dividing up due diligence work eases the pain of 40+ hours required
- Variety of industry sector experience available
- Pick and choose the deals you like
- Negotiate term sheets with the strength of a group of investors
- Get to know and work with the entrepreneur
- Have fun with like minded investors
- Potential for deal syndication with other groups and our partner funds e-Fund and WUTIF
Angel Forum Members are
- Active private equity investors
- Able to contribute time, wisdom and experience to companies
- Accredited investors
- People who enjoy building relationships with other members
Angel Forum Annual Membership Comes With Benefits
- No Forum attendance fees
- Access to Angel Forum Slack channel (for deal-flow, due diligence)
- Discounts to educational courses and workshops
- Automatic associate membership of NACO
- And - importantly - the ability to network and syndicate their angel deals