Start an Angel Group

By starting an Angel group, you will strengthen the Angel investing ecosystem, make a positive impact on the community and, in turn, enhance the economy.

Angel groups can be any size, from 4 to over 100 members.

Steps Towards Starting an Angel Group

1. Develop relationships with local professionals who work with high-growth companies;
2. Identify potential member Angels;
3. Hold an information session to engage potential Angel members and explore the possibility for a new Angel group;
4. Determine the structure for the new Angel group, including the needs of potential Angel members, geographic boundaries, targeted industries, expectation of financial returns, and mission and vision;
5. Invite accredited investors to join the Angel group; and
6. Hire a group manager to oversee administrative responsibilities, such as advertising the group’s existence to entrepreneurs in the community, maintaining the membership roll, and coordinating member events, member communications, and public relations.

Best Practices

• Require all members to be accredited investors and have them reaffirm their accredited investor status annually, when they renew their membership; and
• Have existing members refer new members to the Angel group, which will enhance the credibility of the community of investors.

Overall, an Angel Group and its Members:

• May employ professional part-time or full-time management;
• Maintains the privacy of individual members, but has a public face with a website and public relations activities;
• Coordinates members’ efforts towards due diligence, but make individual investment decisions; and
• Allows members to invest under a single set of terms

For more details on establishing an Angel group:

• Refer to Age of the Angel, our textbook of best practices for Angel investors and groups. To obtain a copy, click here.