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The Managing
Member reviews executive summaries and business plans submitted
by Entrepreneurs and determines which deals are appropriate
for presentation to the Club. Consideration is focused on
the management team, market size, initial due diligence findings
and other factors relevant to generating a favorable return
to the Club. Most of the presenting companies are in their
early stage of growth, providing the opportunity for a relatively
large equity-for-investment ratio. Companies in other stages
are also considered on a case-by-case basis.
Dinner Club meetings are held ten times a year at which time
one or two companies present to members. After each company
presentation, a question-and-answer session follows and the
group discusses whether to proceed with further investigation
of the company. A due diligence committee of several investor
members is appointed to work in conjunction with the Managing
Member to follow-up with the prospective company and recommend
an investment action to the group. The members vote at a subsequent
meeting whether to proceed in making an investment.
Transaction size varies, but most initial investments range
from $150,000 to $200,000. The Club will also participate
in followon rounds of financing where appropriate.
The Club
co-invests with established venture capital firms, other Angel
investing clubs and other sources of capital when practical
and takes a lead in an investment at other times. However,
the final investment decision is at the sole discretion of
members.
The structure
of each deal is negotiated on a case-by-case basis by the
Managing Member, but usually consists of preferred stock or
convertible debt as opposed to other instruments.
At this time the Club is fully invested and are not making any new investments.
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