Northeast Angels (NeA) reviews all opportunities meeting out investment through the process listed below.
Screening
NeA requires all companies interested in presenting to the investor group to first submit a summary of their business, including summary financial projections, in order to determine if you will be invited to present to our Screening Committee.
Summaries should be submitted online: http://www.angelsoft.net/apply/northeast
Once we review your one-page summary, we will let you know the next steps. We make every effort to respond to all applicants.
Exploratory Contact
Those reaching favorable consensus are invited to provide additional detailed information through a subsequent in-person meeting. Companies that demonstrate an attractive investment opportunity are considered for presentation to angel members at an NeA regular meeting.
Presentation
Typically, two companies present to angel members at each regular meeting. The meetings are not public and are by invitation only.
Agenda:
- Presentation. No more than 30 minutes unless agreed before hand. We may ask questions for clarification but generally will not make comments or critique the information
- NeA internal deliberations. Please wait outside the room for 10-20 minutes while we deliberate and assess interest in pursuing your opportunity.
- Rejoin NeA. We will summarize our interest and probably ask more questions. Please address any questions but we suggest you not comment or rebut critiquing or advisory comments unless invited to. This is in the interest of time and to allow all members to comment if they choose.
Format and contents. You have already made a submission through our website and the presentation format and information selection is up to you. However, here are some suggestions that you may well have addressed, but if not, may make the process more efficient and effective.
A. Begin with a very short summary of the idea or product, its present status, history, if applicable, the market it competes in and to whom it will be/is sold, how you generate revenue, the funds you are seeking and how you plan to use them.
B. The rest of the presentation is your opportunity to explain how your opportunity will achieve results which will give us the exceptional returns we expect from our investment. Don’t try to sell us the product or service; present information that supports your belief in the results the business will produce. If you don’t have all the answers yet, say so, but address important topics so we know you are aware of the needs.
- Ensure that your product/service is understandable and understood by us; avoid or explain any technical or market acronyms.
- Include the advantages it brings to the market that will cause customers to buy, what market you will compete in and who your target customers will be.
- Explain your marketing and sales strategies
- Show financial projections
- Explain your exit strategy, i.e. when/how do investors get the return on their investment.
- Give backgrounds of critical members of your team and yourself.
C. Meeting room. There may be 10-12 members present so bring any handouts in sufficient quantity. We have a computer projector you may use if you choose. We will be seated around a long narrow table, you will be presenting at one end and there will be a screen on the wall behind you.
Due Diligence
During due diligence, interested investors will verify the statements made in your business plan, presentation, and financial projections. They will thoroughly research your team’s background and track record. If you play an active role in facilitating this process, it will help to expedite a final investment decision.
Term sheet negotiation
After successful completion of the due diligence process, interested angel group members will present a term sheet that defines the structure of the investment deal - including type of equity and board of directors representation, using industry standard terms and provisions.
Funding & Beyond
When all parties are satisfied with the terms and language contained in the term sheet, the deal can be executed. But remember, closing the deal is only the beginning of the angel funding process. Now you have access to a network of value-added contacts and experienced professionals who can provide essential guidance for the growth and success of your venture. Adhering to the responsibilities at this stage will enable you to get the most from your angel relationship.
Confidentiality
As is the case with most Angel groups and Venture Capital firms, NeA does not sign specific non-disclosure or confidentiality agreements with presenting companies. We do recognize the importance of confidentiality for the applicants and we do our best to preserve the confidence that you show by sharing your information with us.