A net worth of over $1,000,000; or an individual yearly income of $200,000+, or a joint yearly income of $300,000.
Intent to invest. Participating in every deal is not required but coming with the desire to make investments is required.
Companies selected for Denver Angels come from a diverse background, asking a lot of insightful questions is appreciated.
Members often have expertise in a specific industry which they can share with the group during diligence conversations.
Denver Angels manages the sourcing, diligence, term negotiation, syndication, company support, and maintenance of investment.
Denver Angels has gained statewide recognition as one of the best places to go for angel funding in Colorado. Inc Magazine even gave us a shout out in their Surge City Report. We partner with Colorado Startups, local accelerators, and a range of startup partners to source fast-growth companies in Denver and across Colorado.
Denver Angels has a metric and relationship-based diligence process. For metrics, the company must have revenue, Month over Month growth, and the ability to quickly scale with funding. The company should also have a fundamental legal structure (Corporation, By Laws, Cap Table, equity agreements, etc.) necessary for the company to be a fast-growth venture.
For the relationship-based diligence, the founder needs to have a previous relationship with the Directors or members of the group for a length of time. This allows us to understand the founders as well as make a better investment decision based on who is steering the ship.
Denver Angels manages term negotiation and investment vehicle structure. Working as a syndicate, as opposed to individuals, Denver Angels has a smoother deal process and can create a better overall deal structure and terms for both the company and investors.
Once directors and partners are committed to personally investing in the company, the founders are then invited to investor night to meet the rest of the investors in the group. After meeting other members and giving a presentation, each investor makes their own investment decision.
For each investment, Denver Angels creates a Limited Liability Company (LLC) to act as the investment entity. This is called syndication, which is a common practice amongst the higher-performing angel groups. Each syndicate investment has a one-time cost for the legal, accounting, and tax requirements. These costs vary depending on how many investors invest and are distributed as a small fee to all participating investors.
Denver Angels will help grow companies after the deal is done. This can include everything from taking on board seats, making connections to customers, introducing future round investors, and providing strategies for growth. We've found that seed investors can help set a company on a faster growth trajectory, and we aim to be a great partner.
Denver Angels will help protect the syndicate's investment in future round negotiation as well as manage all future distributions, liquidations, and exit events for the investment.