Managing Members, Guiding Presentations and Finding the Right Angel Investor Deals
Angel investing has long been an important source of financial support and mentoring for new and growing businesses, bridging a gap between individual and institutional venture capital rounds of financing or being the only source of external financing. Over the past several years, the number and types of organized business angel groups has grown, and the business models for the groups continue to evolve. These organizations are generally better financed than ad hoc groups of individual investors, but they also face their own organizational and structural challenges. This paper outlines some of the lessons shared among business angel investment groups around North America during an “Angel Organization Summit” held in October 2002.
Best practices shared by the 25 groups participating in the summit include: managing membership participation, coordinating company presentations, finding the right fit for potential investments and working with other investors, particularly venture capitalists and other angel groups.
MANAGING PARTICIPATION OF MEMBERS
Since angel groups are disaggregated organizations of individual investors, one key goal for angel group leaders – whether they are members themselves or hired managers – is to maintain appropriate levels of member involvement and application of members’ expertise. Strong member involvement ensures that the group provides more value-added contributions Continue reading