For Angel Investors
BusAccel is facilitating the establishment of one or more Angel investor funds in northeast Iowa. Investors participating in Angel funds have the opportunity to invest in early-stage companies prior to an initial public offering.
Investments in these private companies can be higher in risk than traditional public companies, but are intended to offer a superior return commensurate with the level of risk.
Angel investors can and do make individual investments in privately held companies. Typically in these deals, entrepreneurs publish a private offering memorandum that communicates the terms of a "round" of financing. The price, shareholder rights and other terms are predefined, are equal among all participants in the round and are typically not subject to negotiation once the round has broken escrow.
In an Angel fund, high net worth individuals and institutions pool investment capital together. Benefits of participation include:
- Is Increase buying power by increasing average transaction size
- Spread risk by participating in more deals
- Obtain more influence in selection of exit windows via board seats
- Secure rights to participate in subsequent offerings
- Share deal review and due diligence expenses
In contrast to individual investments, entrepreneurs commonly "shop" terms with Angel funds prior to formally launching an investment round, enabling Angel funds to negotiate terms. Decisions are made by the participating investors in accordance with their by-laws.
BusAccel will facilitate formal and informal opportunities for prospective investors to meet.
- Is Angel investing right for you?
- Angel fund form and structure
- Due diligence
- Structuring the deal
- Valuation
- Exit windows -- cashing in
On behalf of entrepreneurs, BusAccel will present prospective investment opportunities to Angel funds for their review and consideration.