INVESTMENT PROCESS  

 




INVESTMENT PROCESS


Before submitting your business plan for our consideration, you must determine if angel capital - and specifically capital from our group - is right for your company. The angel investment criteria will be helpful to guide you through this process. 

Complete an application outlining the key characteristics of your company. A team of industry experts will review the application and determine if it is a good fit for our group. If it is deemed a good fit, then you will be invited for a screening presentation to the membership. It is always preferable to have a member of the New York Angels sponsor your company to  attend screening.  

Screening dates and deadlines for applications can be found on our Calendar page.

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Screening meeting
Screening is held once a month with up to 14 companies. Screenings are in-person in New
York City and consist of a 10 minute presentation
to approximately 15 to 40 members, followed
by a 5 minute Q & A. If there is interest to move 
forward from at least 7 members, then the
company moves to discovery.
 multiple members, the company proceeds to discovery. 

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Discovery
Discovery is a one to two hour meeting at which a more in depth discussion will occur on the key issues affecting the future success of your business. No additional preparation is necessary for Discovery. If there is sufficient interest following Discovery, then Due Diligence will commence.

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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, and will often
conduct calls with customers and vendors. An
initial discussion of valuation and terms will
happen early in due diligence to make sure the
two parties are within working distance of each
other and that due diligence can proceed. If
you play an active role in facilitating this process, 
then it will help to expedite a final investment
decision.

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Term sheet negotiation
After successful completion of the due diligence process, interested angel group members may present a term sheet that defines the structure of  the proposed investment deal, including type of equity, investor rights and board of directors representation, using industry standard terms and provisions.  You can find a model of our term sheet at http://bit.ly/ModelDocsNYA.

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Breakfast Presentation 
Once a term sheet has been acknowledged and confirmed by the company and NYA Deal Lead(s),
a 20 minute presentation (including Q & A) will be made to the entire membership at our monthly Investment Breakfast Meeting. There may be
an additional one to two hour meeting to review
the proposed investment with any new
prospective investors.

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Funding & Beyond
When all parties are satisfied with the terms and language contained in the term sheet, the term sheet is executed and full documentation is processed reflecting the terms therein, using standard NVCA- consistent agreements. But remember, closing the transaction 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. 

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