“Angel investing is the act of putting money into the earliest investment rounds of a private business with the goal of getting back more money than you put in - much more than you can return in a safer, more established investment vehicle.” - Calacanis, J. (2017). Angel: How to invest in technology startups-timeless advice from an angel investor who turned $100,000 into $100,000,000.
What sort of community I am getting with Commune Angels?
Commune [kom-yoon] is a close-knit community of people who share common interests and exchange ideas.
As a community, we welcome handshakes, fist and elbow bumps, and head nods. We have created a platform where everyone feels comfortable and has a place to learn, share and invest. We encourage all members to be their authentic selves, to share their unique perspectives, experience, and skills.
How can I learn more about angel investing?
Education is a critical element of our mission. We encourage aspiring, new, and experienced investors to attend Commune Angels events, and visit the Commune Lab where we often publish content on angel investing, entrepreneurship, and industry trends, and share other highly recommended resources such as books and podcasts. We also host book clubs periodically.
What is an “Accredited Investor”?
The SEC recently revised the term “Accredited Investor” as defined under SEC guidelines, and refers to the qualifications individuals and entities must satisfy to participate in certain securities offerings. Effective as of sixty days 60 days after the the new rule is published in the Federal Register, an individual “Accredited Investor” will mean:
Any natural person whose individual net worth or joint net worth with that person's spouse or spousal equivalent at the time of his purchase exceeds $1,000,000 excluding the value of the primary residence;
Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
Holders in good standing of the Series 7, Series 65, and Series 82 licenses; or
With respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund.
Investors that do not meet those qualifications are “unaccredited investors.” Non-individual investors must meet different qualifications under Rule 501.
Does Commune Angels admit “unaccredited investors”?
Yes, we admit a capped number of unaccredited investors each year. We believe rising angel investors must be cultivated today to continue to fuel the economy tomorrow. As such, education and access are central to our mission for all members, but of extreme importance for empowering unaccredited investors to leverage our community, learn more about angel investing and the investment process.
Does Commune Angels syndicate?
Commune Angels do syndicate with other angels, angel groups and early-stage venture capital funds. We have co-investing relationships with the Black Angels of Miami, IrishAngels, and Invest Detroit Ventures, to name a few.
What is an SPV?
An “SPV” or Special-Purpose-Vehicle is used to pool member capital for a portfolio company investment into a single entity, usually a Delaware LLC. When taking investment from an angel group, an SPV makes it easier for founders to manage their Commune Angel investors with just one point of contact and taking up one line on the company’s cap table.
What can I expect during the due diligence process?
Due diligence is an ongoing process, which starts from the moment we receive a company’s application. Once the more formal due diligence process starts we will provide a version of our standard due diligence request. More generally, you should be prepared to provide requested materials, answer questions about the team and business, and provide references.
Does Commune Angels sign NDAs?
As a policy, we do not sign NDAs or confidentiality agreements, a standard practice in the industry due to the volume of decks, plans, and submissions we receive. Our reputation is, however, central to our ability to work with founders, partners, and other investors.
Where does Commune Angels invest?
We invest in companies in the U.S. We may also consider companies in Canada where we believe we can be of value to the company and team.
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