JOIN THE GROUP
We welcome accredited investors in the Greater Denver area to attend! Beginner or expert, we invite you to our investors nights. Writing checks and investing in every deal is not a requirement; we do ask though that you join this group with an intent to invest in fast-growth companies, not just to come network.
A net worth of over $1,000,000, an individual salary of $200,000+, or joint salary of $300,000.
Intent to invest. Participating in every deal is not required but coming with the desire to do deals 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 area which they can share with the group during diligence conversations.
Denver Angles 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 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 coastal deal partners to source fast-growth companies here locally and across the country.
Denver Angels has an in-depth diligence process, that each company must go through to be invited to investor night. After investor night, if there is enough investor interest in the company, we go through a deep legal, financial, and qualitative diligence to make sure the company is right for investment.
Denver Angels handles term negotiation and investment vehicle structure. Working as a syndicate, as oppose to individuals, leads to a smoother deal process, and better overall deal structure.
Denver Angels uses SmartCapital as the provider of SPV creation and subscription process for each deal. Their software makes it easy for members to invest, receive K1s, and keep up to date on companies through reporting.
Denver Angels will help grow companies after the deal is done. This can include everything from taking on board seats, making connections to customers and future round investors, and providing strategies for growth. We've found that being value add seed investors can help set a company on a faster growth trajectory.
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.
Each syndicate investment has a one-time cost of $8,000 prorated across all investors in the syndicate by their investment amount.
For example, if Denver Angels puts together a syndicate for a $300,000 investment in a startup, and you put in $30,000 you would pay approximately $800 in costs.
These costs are used primarily for operations in terms of entity creation, legal, accounting, taxes, reporting and events.
Syndicates apply a carry of 10% on investments between 1x-3x return, and if the deal does especially well and returns a 3x on investment, carry is distributed as 20%. Carry is a cut of positive returns (after money returned) generated by the investment.
Example: let's say you invest $30,000 in a syndicate deal. If the investment returns $60,000 (a 2x return), with 10% carry, the syndicate would earn $3,000 in carry. 10% * ($60,000 - $30,000).