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Entrepreneur FAQ's
 

Q. How will I be treated when I present my deal? What if the members don’t understand me?

A. At the InvestIN Forum we admire entrepreneurs, treat them with the utmost respect and make an effort to understand your value proposition.

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Q. So much of my deal is confidential, how can I be assured that someone won’t copy it?

A. Please do not disclose confidential information. We do not sign confidentiality agreements until the due diligence stage (and then they are signed by the individual members at their personal discretion).

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Q. My spreadsheet shows I am going to have $1 billion in revenues in year 3. Shall I include that?

A. Please smile at yourself and come down to Earth.

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Q. Will angel investors want to control the Board of Directors?

A. No. Even when you have three or four angel investors in your Series A Round, you will typically have only one angel on your board; and only if they can be a useful board member. More likely, the angel that leads your due diligence will be appointed by agreement between you and the other angel investors to represent them and distribute regular timely information.

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Q. I have a private placement memorandum (PPM). Can I simply send that in for members to invest in?

A. No. We rarely look at PPMs when first considering a deal. We are business savvy people and want to look at your plan in detail and get to know you and your business. Your PPM should be posted to your virtual deal room for due diligence..

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Q. How long does it take between presenting to the forum and receiving checks?

A. Due diligence typically takes 6 weeks. A lot will depend on you. Taking into account if you have: a good story; the time and discipline to follow-up with the members that have shown interest; prepared your PowerPoint presentation deck properly; a reasonable budget, and have clean corporate records.

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Q. Can I dictate the term sheet?

A. You can try. Open discussions with your angel investors and talk about your "wish list." This is a good starting point.

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Q. Should I use the Discounted Cash Flow method in valuing my company pre-money valuation?

A. It is not appropriate for early stage companies.

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Q. Will members of the InvestIN Forum help me with anything other than cash?

A. Yes. Please don’t hesitate to ask for such things as industry contact referrals.

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Q. I don’t really need help and don’t want to hear anyone else’s opinion. Is it possible to get an angel to invest and cut me a check under these conditions?

A. I doubt it. Forum members have "been there, done that" and like to offer help and invest in companies where the entrepreneur is coachable.

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Q. Who makes the decision to invest?

A. Each member decides individually whether to invest or not. The InvestIN Forum is not a fund and does not broker deals.

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Q. Does the InvestIN Forum want exclusivity on my deal?

A. Absolutely not. We encourage you to present to other angels, venture capital funds and other angel groups.

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Q. Where can I find other forums of angel investors?

A. When appropriate we will promote your deal to other angel groups in our syndicate.

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Q. Am I likely to find anyone who understands my sector in the group

A. Yes, that is highly likely. Our members are extremely diversified.

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Q. Who will be at the InvestIN Forum when I present?

A. Mostly angel investors and a few guests, normally professionals, e.g. attorneys or bankers who refer deals or investors to us.. We also invite a few students who are future entrepreneurs from the business schools at the local Universities. There are no service providers apart from those considering sponsoring the forum or one of its’ events.

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