FAQ  




How long does it take to join New York Angels? Prior to becoming a member, it is recommended that prospective members meet current members of the New York Angels.  A prospective member thus will be asked to attend at least one screening and one breakfast meeting in order to see if New York Angels is right for them. 

What is angel investing? Angel investing is early stage investing in private companies. 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.

Who are angel investors? 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 companies with seed capital through direct, private investments, typically in the form of preferred equity or convertible debt financing, with New York 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. 

What if I do not make an investment during the year through New York Angels? New York Angels are looking for active members. If you are not making investments or contributing to the growth of the group, then the New York Angels is not the right group for you.
In what dollar increments are angel investments made? 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 NYA makes an independent investment decision on where and how much to invest. In general, angel investments are made in increments of $25,000. The New York Angels expects all members to invest $50,000 a year in NYA deals.

How do I reduce the risk of angel investing? 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.