Investment Process
AIF evaluates every opportunity that meets our investment criteria through the systematic process described below:
Screening
AIF requires all companies interested in presenting to the investor group
to first submit a summary of their business which covers all the major points we should know, including
summary financial projections, in order to determine if you will be invited
to present to our Screening Committee.
Summaries should be submitted via Internet: http://www.angelsoft.net/apply/angelinvestorforum
Once we review your one-page summary, we will let you know the next steps. We make every effort to respond to all applicants, however if you do not hear from us within
three weeks, you may assume that your application has been passed.
Exploratory Contact
Those reaching favorable consensus are
invited to provide additional detailed
information through a subsequent in-person meeting. Companies that demonstrate an attractive investment opportunity are considered for presentation to angel members at an AIF regular meeting.
Presentation
Typically, two companies present to angel members at each regular meeting.
The meetings are not public and are by invitation only. Prior to the meeting,
AIF management works with each presenting company to
ensure that the presenting
company is
focusing its presentation on the critical issues that are
the
main interest of potential investors. After each presentation is
concluded,
entrepreneurs are excused and
AIF members discuss the presentations. A signup
sheet is then
passed around for individual members who
are interested in
the company.
Due Diligence
Opportunities for which members indicate a significant level of interest
enter the AIF due diligence process. This process begins at the regular meeting
when a minimum of three interested members volunteer to participate
on a due
diligence committee and to negotiate the investment. The Managing Director
of AIF serves to coordinate initial due diligence, but responsibility is
totally in the hands of the potential investors.
Investment
Should a decision to invest be made, AIF will provide a standard set of
documents to be used in the following stages. Hence, there
will be only one
negotiation, only one term sheet, and only one set of documents. However,
each AIF member will have an independent investment decision, which will
be reflected in the documents. AIF has no responsibility in any kind of agreement
(formal or informal) between the funded company and the individual investors.
Syndications
When appropriate, AIF will syndicate deals
with institutional venture capital
firms, investments banks, or other angel organizations.
Costs
There is a $25 charge to submit materials to AIF. There are no other fees associated with the application process. If an investment is negotiated, all legal fees would be paid for by the closing proceeds. AIF takes no warrants
or commissions for the capital raised through
the forum. One of our members typically
serves as the liaison with the Company and
is compensated in options for their work on
the advisory board or Board of Directors.
Confidentiality
As is the case with most Angel groups and Venture Capital firms, AIF does not sign
specific non-disclosure or confidentiality agreements with presenting companies. We
do recognize the importance of confidentiality for the applicants and we do our best to preserve the confidence that you show by sharing your information with us. AIF members are required to sign a blanket recognition of the need to preserve confidentiality. If you have any questions, please contact us.