FAQ'S
Angel investing by nature is a risky proposition. Like other investment classes, it has been shown that risk can be reduced by diversifying across a broad portfolio of angel investments.
Angel investing is an extremely risky asset class and should not be undertaken if the investor is unable to absorb a complete loss of his or her investment. Each member of TiE SoCal Angels makes an independent investment decision on where and how much to invest. In general, angel investments are made in increments of $50,000. The TiE SoCal Angels expects all members to invest in a minimum of $10,000 a year and above.
Angel investors are accredited investors who allocate a portion of their total investment portfolio to various alternative investments. Within this asset class, angel investors provide emerging startup’s with seed capital through direct, private investments, typically in the form of preferred equity or convertible debt financing, with TiE SoCal Angels preferring the former structure. Given the lower capital risk associated with publicly-traded equities, angel investors seek appropriately higher risk-adjusted returns from their private market investments. Most angels are active investors who contribute their time and experience, as well as offer introductions to valuable contacts essential to a company’s success, because they enjoy helping to define and reach milestones throughout the entrepreneurs’ journey.
Angel investing is early stage investing in Startup’s. It generally is the funding sought after preliminary friends and family financing and before later-stage venture capital financing, at which point revenues, a customer base, distribution channels, etc. are more firmly established. Because of the early stage of the companies being financed, angel investing is very risky and typically illiquid for five to ten years.
Prior to becoming a member, it is recommended that prospective members meet current members of the TiE SoCal Angels. Charter Member Application process usually takes one week.