Angel Assistance
Angel Group Assistance Program
Angels play a pivotal role in the early-stage community. In 2004, they infused $12.5 billion into some 48,000 entrepreneurial ventures, accounting for 80% of the start-up capital in the U.S. When they join together in angel networks, private investors reap the benefits from shared expertise, risk and due diligence responsibilities, and the ability to participate in deals at a higher level with the combined resources a network affords. Angel networks can elevate the investment climate in a region because they tend to make larger investments per company, invest in a greater number of companies, perform more in-depth due diligence, and are more likely to participate in follow-on funding rounds for their portfolio companies.
In an effort to catalyze the creation and ongoing strength of angel networks in the Pittsburgh region, Innovation Works has embarked on an Angel Group Assistance Program. The program will provide funding and in-kind support to groups with at least five members.
Financial Assistance
IW will offer a one-time grant to help offset the costs of running a formally organized angel group. The grant can be used for:
- Professional management
- Costs associated with holding regular meetings
- Due diligence expenses
- Legal expenses related to investments that are not reimbursed upon closing, and
- Purchase of industry research
In-Kind Support
Managing an angel network often involves access to expertise, logistics support and other day-to-day events that can be hurdles for private investors. IW is attempting to reduce that burden by providing:
- IW conference room(s) for group meetings
- Access to industry reports purchased by IW
- Introductions to VC firms and other sources of follow-on funding
- Attendance at IW-sponsored angel deal-sharing and networking events
- Templates for creating pooled investment vehicles
- Sponsorship of angel investor education events
- Periodic briefings on companies working with IW
Criteria for IW Angel Support
IW’s Investment Committee evaluates angel groups for assistance using the following criteria for the group:
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Consists of at least five members, all of which must be accredited investors at defined by the Securities and Exchange Commission.
- The group, or some of its members, must demonstrate a history of making investments in private companies, preferably, early-stage technology companies.
- Commit to investing at least $200,000 (aggregate) in early-stage technology companies in the next 12 months.
- Commit to pooling its investments into a single entity for the purpose of making each investment when it is economically practical to do so.
- Hold at least six meetings per year, at which potential investments will be reviewed.
- Track data about its investment activity
- Does not charge companies for the opportunity to present to the group.
Angel groups who are interested in applying for assistance may contact Matt Harbaugh at Innovation Works at mharbaugh@innovationworks.org or 412-681-1520.
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