NoCo Angels
RMI2 is working with members of the investor community to launch NoCo Angel Network, the first organized angel investor network in Northern Colorado. This network will bring together entrepreneurs needing financing for their businesses with private investors interested in investing in regional technology startups. The goal is to increase the pool of investment capital available to fuel the creation and growth of Northern Colorado startups while providing a platform and structure for education, risk reduction, and social interaction for investors. The group held its first informal event in October 2007 with more than thirty private investors attending and plans to go live with further events in 2008.What is an Angel Investor?
An angel investor is an individual who makes direct investments of personal funds into a venture, typically early-stage businesses. Because the capital is being invested at a risky time in a business venture, the angel must be capable of taking a loss of the entire investment, and, as such, most angel investors are high net-worth individuals. These individuals are nearly always accredited investors. “Accredited Investor” as defined in the Securities Act of 1933 for individuals means: “a natural person who has individual net worth or joint net worth with the person’s spouse that exceeds $1 million at the time of the purchase;” OR “a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year”.
What is an Angel Group?
An angel group is a formal or informal group of active angel investors who cooperate in some part of the investment process. Key characteristics of an angel group are: control by member angels (who manage the entity or have control over the entity’s managers), and collaboration by member angels in the investment process.
What is the NoCo Angel Network?
The NoCo Angel Network is an angel group in Northern Colorado. It facilitates the introduction of entrepreneurs to potential investors through presentations and other mechanisms. The Network consists of individual angel investors interested in financing privately-held companies or ventures typically in an early stage of development. The Network is focused on potential investments in the Northern Colorado area.
Is membership in Network restricted?
Yes. Please see the What is an Angel Investor? section above, and review the entire content of the Membership Agreement.
How do I learn more about Angel Investing?
Network conducts periodic training programs for members as part of its continuing education program regarding angel investing. Periodically, the Network has speakers on relevant topics as part of the group meetings. Members also learn from other experienced NoCo Angel group members.
Is there a minimum or maximum amount of money I may invest?
Individual angel investments are typically in the $25,000 to $50,000 range, per company. However, negotiations with individual companies may create opportunities with investment amounts that differ from the typical.
How will presenting companies be selected?
A company that wishes to present to the Network must submit an application, including a summarized business plan and a nominal fee. The Selection Committee of the Network will then review the plan for suitability for presentation. Suggestions regarding strengthening presentations will be made. If selected for presentation, the company will pay the presentation fee and be invited to a meeting of the Network.
May I invest in addition to the amount invested by the group?
Yes, additional investments are at the discretion of the individual angel.
How is due diligence conducted?
One of the great strengths of angel investing is the opportunity to share knowledge and experience during due diligence. Usually, after a company presents, Network members interested in investing in the company will meet and develop a plan for due diligence. Taking into account members’ background and expertise, the group assigns due diligence tasks to members. When the due diligence is complete, all contributing members report on their findings. The group then decides whether, as individuals, they wish to invest.
How is the Network run?
The Network is a Colorado non-profit and is governed by a Board of Directors. It is not a non-profit in accordance with IRS regulations and therefore, may pay taxes.
How is the Network funded?
The Network is funded with member dues and sponsorships of supporting organizations. The expenses of the Network include meeting expenses, member relations and communications, education expenses, public relations, and website development and maintenance.
Please visit http://www.nocoangels.com for more information. Please click here for membership inquiries.
