FAQ for the Angel Investor

Q. If I attend a forum, will I be bothered by consultants and/or service providers?

A. Absolutely not. We work very hard to protect our members so that they can feel comfortable in the company of peers. We maintain a strict policy that no one should ask for a business card, but if it is offered then you may take it of course.

Q. If my expertise is in one domain such as Real Estate, how will I know how to judge an opportunity such as a medical device or technology deal?

A. We try to offer very diversified opportunities. As a member of InvestIN Forum, you will see a wide variety of deals. While you may not understand all of these, other members will understand those deals and can help clarify the value proposition if you are interested. Many investors only want to invest in what they know; this is also acceptable. Simply let us know your interests.

Q. If I am interested in a deal outside of my expertise, how will I gain a better understanding?

A. If you participate in due diligence with someone who has domain expertise, over time you will feel more comfortable diversifying your portfolio of angel investments. Our members are very helpful toward each other. In addition, you may participate in a Kauffman Foundation seminar or workshop.

Q. I have never invested as an angel, but would like to investigate these opportunities. What is the first step?

A. Please contact your local community president, and, if you qualify, we will invite you as a guest to a meeting. After attending a few meetings, you can decide if you are still interested and comfortable with the forum. Then, you simply fill out an application and pay your membership dues. When you do join, take your time before you invest in your first deal. Learn before you jump. Read the recommended reading, join a due diligence team, then start small on a deal that has a lot of traction.

Q. What is the minimum amount I can invest in a deal?

A. Most deals have a minimum of $50,000. Some are $25,000. The average for experienced investors is $50,000 to $100,000 with some angels making individual investments of $250,000.

Q. Do I have to make a minimum number of investments in a year?

A. No, but if you are not making investments (i.e. cutting checks ), then we will question why you are a member and probably not renew your membership. The InvestIN Forum is for active angel investors.

Q. Will the Forum tell me what to invest in?

A. No, you must make your own personal decision after performing due diligence.

Q. If I decide to cease making angel investments, can I remain a member?

A. The InvestIN Forum is for active angel investors.

Q. During a meeting can I ask questions and make comments?

A. We prefer you not interrupt the entrepreneur. We wait until he/she is finished. Their presentation is normally twelve minutes in length with eight minutes left for questions from the audience. After all the presentations (and the entrepreneurs have left the room), as a group we discuss the deals. Notes are taken so we may provide feedback (the good, the bad, and the ugly) to the presenter. Members and possible future members are invited to participate in this process.

Q. May I contact any of the presenters after a meeting if I am not on a due diligence team?

A. We prefer that you join the group. With many experienced investors coming from diverse backgrounds, you will always benefit from knowledge outside of your own expertise.

Q. How are the deals closed?

A. Each investor is responsible for their own deal, term sheet and documentation. However, there are several resources available where a novice investor can get support. See our Recommended Reading and feel free to contact persons under your chapter's Local Resources.

Q. Am I permitted to visit other InvestIN Forum chapters and see the deals that they have?

A. Absolutely. As long as you are a member in good standing.