1.6 Level of Collaboration
Lone Wolf, Angel Group Member, Angel Fund How active or passive as an investor are you? Do you want to do it all yourself? work with a small group of people you already know? become a member of an Angel group? invest in an Angel fund or Angel sidecar fund? For many Angels, the answers to these questions may vary from deal to deal, and depend on their capacity and who else is co-investing. If you choose to join one of the numerous Angel groups across Canada (see the member directory at www.nacocanada.com for a list of Angel groups in Canada), you can benefit from many aspects of membership: • Access to a regular deal flow of investment opportunities • Pre-screened investment opportunities can save time • Opportunities are presented in a consistent format • Investment presentations by entrepreneurs are regularly scheduled • Opportunities to network, co-invest, and make new friends with other Angels • Share the workload of due diligence and deal negotiations • Educational opportunities • Access to an array of experienced consultants and advisors Angel groups work in many different ways. In some cases, for example, First Angels Network from Atlantic Canada, the group manager will find, select, complete due diligence and negotiate the deal, then present the deal to the members, who make their own independent yes/no investment decisions. Other groups, for example, the VANTEC Angel Network in Vancouver, are run by volunteers who perform preliminary screening and organize events where the Angels meet prospective investee companies. Any Angels interested in potentially investing then meet separately in private to organize due diligence and negotiate a deal. If you choose to collaborate with others, how hands-on do you want to be in the investment process itself? Do you want to be more active or passive than the average Angel? Do you want to take on a lead role or let someone else drive the process? Do you want to hire others to check references, evaluate the code, audit the books, and draft agreements? Or do you want to do it yourself? Again, the answers may vary from deal to deal.
Angel Co-Investment
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Angel Fund Investment
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27 A Practical Guide to Angel Investing: How to Achieve Good Returns
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