with certified ARI workshops and programs
ARI has heard from many in the startup support community that they are interested in building awareness about and capabilities in angel investing, often as a one of the ways to build entrepreneurial and economic growth in that city. ARI has a variety of ways and ideas for interested people to establish or help build angel groups and investing, educate a variety of entrepreneurs and investors, and make sure all parts of the ecosystem are connected.
Host a Program
ARI is the leader in educating investors, entrepreneurs and the startup community on best practices in early-stage equity investment deals. We travel throughout the world and become a part of each community that we visit by working with hosts, entrepreneurs, and angel investors to establish new funds, to prepare startups for funding, and so much more. If you are interested in possibly hosting an event, take a look at ARI's list of programs and workshops. It takes a minimum of 30 days to plan a workshop due to the marketing and travel arrangements required.
FAQs for Startup Support Community
Q: What is an angel investor? Are there special requirements?
An angel investor is a high net worth individual who invests directly into promising entrepreneurial businesses in return for stock in the companies. ARI recommends that all angels meet the wealth or income requirements for "accredited investors" set by the US Securities and Exchange Commission.
Q: What is an angel group?
Individual angels are joining together with other angels to evaluate and invest in entrepreneurial ventures. The angels can pool their capital to make larger investments.
Q: What are the benefits of belonging to an angel group?
Angel groups often offer a variety of benefits: high quality investment opportunities, diversification of investments, share due diligence with subject matter and industry experts, networking with talented people, education and training, and a chance to promote growth in your community, among others.
Q: Is there an angel group located near me?
As angel groups are located in nearly every state, there is a good chance you can find one near you. You can find an up-to-date list of angel groups on the Angel Capital Association's website.
Q: What kinds of companies do angels invest in?
Angels look for innovative startups that can grow quickly in sales and value, creating jobs along the way. The entrepreneurs leading these companies are planning to "exit" the company in a short time period, through sale of the company to an Initial Public Offering (IPO). Famous examples of angel-backed businesses include Google, Facebook, and Starbucks. Many angels like to invest in companies located in their communities and in industry sectors in which they have experience or understanding.
Q: How does the angel investment process work? Are there key steps?
The full process for sophisticated angel investors and angel groups often includes: screening of an executive summary of a business plan, meeting with the entrepreneur and submission of a business plan, presentation by the entrepreneur of the plan with a Q&A period, due diligence on the company and its management team, negotiation of a term sheet and legal documents, and post-investment support, including service on the company’s board of directors, monitoring reports, and providing mentoring and advice. In the case of most angel groups, a small percentage of companies make it through the full investment process.
Q: What are typical considerations in selecting the right investment opportunities?
In the case of an angel group, the pre-screening process often ensures a "match" on basic requirements: the company is located within its preferred geography, growth stage, industry sector expertise, and dollar investment amount. Additional traits for the companies include a strong management team, product that solves pressing needs and has customers that will purchase it, high growth potential, competitive advantages, and exceptional return on investment.
Q: What is the difference between angels and venture capitalists?
Angels generally invest their own money in start-ups and very early-stage companies, while VCs mostly provide capital they have raised from others to later-stage businesses for growth.
Q: How do angels relate to upcoming equity crowdfunders?
Angel groups (and individual angels) are likely the next stage of financing and it is important to ensure that entrepreneurs have access to robust angel capital after crowdfunding. These types of accredited investors are also important to entrepreneurs for their mentoring and advice, and for better structuring investments for long-term growth.
Q: What is the size of the angel market in the United States?
Huge! The market is estimated to be over $20B per year going into more than 70,000 deals.
Q: Why do people make angel investments?
ARI has heard many answers to this question, ranging from "it’s fun" to "I get to help create great new companies in my community" to "it can lead to financial returns," among others and in many combinations.
ARI has multiple courses designed for beginners to expert-level investors and entrepreneurs. Each course is ARI instructor led or ARI can train you to deliver courses.
ARI has delivered more than 400 courses across 38 states and 18 countries for angel groups, economic development organizations, and government initiatives to encourage early-stage investments and deal flow.
ARI is continuously collecting data from Angel investors, groups, and entrepreneurs on early-stage and startup deals in order to provide better metrics.
View the latest Halo Report™ and find out what trends will impact your current and future funding rounds.
Sue Preston, Chair, Angel Resource Institute, explains a new ARI program designed to educate women entrepreneurs and investors.
We are entrepreneurs, angel investors, educators, board members, and community leaders. We are deal-makers and startup experts!