2.3 Fee Income ANGEL GROUP CHARACTERISTICS
The majority (71%) of angel groups charge their investors membership fees (Figure 2). Membership fees for individuals range from$250 and over per year, with six groups (50%of those that charge membership fees) charging in excess of $1,000. The remaining 29% of groups do not charge fees. These are all emerging groups (less than five years old). The proportion of groups that charge a membership has been rising year-over-year (54% in 2017; 65% in 2018).
FIGURE 2 Angel Group Membership Fees
10
8
8
6
6
4
4
3
2
2
1
1
1
0
0
0
0
Free
$1 - $250
$251 - $500
$501 - $750
$751 - $1000
$1000+
Membership Fees
Note: there are 13 groups offering both individual and corporate membership
Just over half of the groups (59%) that responded to the survey extend membership to corporate entities, which may include family offices, investment entities, and professional services firms (e.g., law, accounting). These corporate entities may provide sponsorship and other support to the groups, including offering pro-bono services to businesses that are seeking, or successfully raise capital, with the objective of developing long-term commercial relationships with them. Fees for corporations are typically higher than those for individuals – all are above $750 and 80% are above $1,000. Whereas, only 56% of groups charge individuals more than $500, while only 38% of groups have individual membership fees in excess of $1,000.
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ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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