C HAPTER 8: B UILDING A N A NGEL G ROUP
Finding and evaluating deals The Venture Group Acceleration encourages companies, which are looking for financing, to present a business plan for review and follow up. When a potential business seems promising, the group assigns two or three of its members to act as advisors to that business. These advisors spend several months getting to know the people and the company. They attend regular meetings with the company and assist in developing the presentation that will be made to the rest of the group members. Once the advisors are satisfied that the business is worth investing in, the principals will be allowed to present to the other angels. If the presentation sparks interest, the members of the group will match prospective investors with the capital requirements of the company. A major benefit of this approach is that individuals can invest smaller amounts in a number of businesses, thereby diversifying their portfolios and spreading risk. The angel investor education services include peer-to-peer network meetings where information and learning is shared. Keynote speakers cover topics that will help angel investors make better investment decisions and encourage more investments. CONCLUSIONS While there are many models for structuring an angel investor group, there are also a number of critical success factors common to each. Successful groups begin with a core of investors who have experience and share a commitment to angel investing. They select a process that quickly connects entrepreneurs with interested investors or provides constructive feedback to entrepreneurs as well as leverage to other sources of funding and support. These examples show that angel investors will easily find a structure and process that works for them and quickly develop templates and tools to evaluate deal flow. Cultivating the network for deal flow and attracting new investor membership are the ongoing activities that determine the sustainability of the angel investor group.
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