Information for those wishing to become members:
Our Members are referred by other members and our accredited investors. Please refer to the SEC for the current definition: http://www.sec.gov/answers/accred.htm. Members join because they have an interest in having more personal involvement and interaction in such angel investing.
They have enthusiasm for the start-up environment, and make a commitment to participate in the organization: active involvement in generating deal flow, attending meetings, assisting in/contributing to due diligence efforts. They have industry or functional expertise to contribute to the group. They enjoy mentoring new companies and applying their successful work experience and business judgment. Members agree to help seek out and provide deal-flow.
The Twin Cities Angels works well because of the exclusive and experienced nature of its membership. A company that garners investment from the Twin Cities Angels gets much more than money. It receives the involvement of a group of individuals whose networks and experience can be much more valuable than their seed capital. Typically, every company that receives investment from the Twin Cities Angels also gets a Twin Cities Angels member to serve on the company's board or be an official Observer to the Board of Directors.
Membership is by invitation only and available only until we close the first transaction in the current Fund. To be considered for membership, member applicants must provide their resume and an indication of interest. contact us via email.
All members are required to be: (1) accredited investors, (2) sophisticated investors, and (3) recognized by the business community as having reputable business ethics. The Advisory Committee will notify you after making their decision (please be patient as that may take several weeks).
All members are required to be "accredited investors" as defined by federal securities law. Angel investing, however, is inherently very risky and all members must be comfortable with angel investing. All members invest the same amount in the fund and have the option to invest through side-by-side.
We expect all prospective members to agree to comply with the Code of Conduct before applying. Full member meetings are approximately once every 6-weeks. Each member is expected to participate in at least one due diligence committee per year. Attending committee meetings for non-committee members is not required but encouraged. Committee meeting frequency depends upon the committee.
To maximize the chances of making successful investments, we request the assistance of members at two points in the process: (1) to help review the top candidates, and (2) to assist portfolio companies in achieving key business milestones. This may be as little as reviewing an executive summary for 5 minutes and making a call to an old business contact. Or it could be as much as detailed due diligence calls and active board participation as a lead investor.
To enable the Membership in general and various Twin Cities Angels Board committees to tap these resources when appropriate, resumes are requested of all members. Over time members get to know one another better through networking at Angel events.
We are a low overhead organization, run by investors, not administrators or managers. There is no membership fee, each Active member invests the same amount, and all member have one vote. All members pay for their meals at dinner meetings (which typically average $55).
Each Active member contributes the same amount to join the TCA, $50,000. Each member receives one vote on all issues requiring votes. No proxies or substitutes are permitted. In addition, if a given company is raising more capital than our investment per company allows, individual members may add to a given investment, up to a prorata amount per interested member, through our side-by-side arrangement with our fund.
Individual Investors typically invest $100,000 or more in the Fund. They are encouraged to attend meetings and vote on issues but not required to do so. Side-by-sides investment opportunities are available after Active Members. Execution of the Code of Conduct is required if Individual Investors wish to attend meetings.
Institutional Investors typically invest $200,000 or more. They are encouraged to attend and may (uniquely) send 2 members of their organization. Execution of the Code of Conduct is required if Individual Investors wish to attend meetings. Side-by-sides investment opportunities are available on the same basis as Active Members.
Membership in the Twin Cities Angels is for accredited investors only. New members are welcome from any industry or background. However, all individuals applying for membership are required to acknowledge the organization's Code of Conduct, which prohibit solicitation of business or employment from members or applicants.
The Twin Cities Angels provides its members enhanced deal flow, better due diligence, and the negotiating power of pooled capital. The group also provides a forum for fellowship of like minded successful people. Investing in seed stage companies is very risky. The Twin Cities Angels brings together at one place and time some of the most successful people in Minnesota and the upper Midwest; folks who have walked the walk. By sharing their experiences and judgments the assessment of potential companies is quicker and more accurate. Each member is often a recognized source of capital in their own communities, so each brings to the Twin Cities Angels a unique source of new deals.
Twin Cities Angels investment shares are not tradable. The only mechanism for return of capital or realizing a gain is through distributions from portfolio companies. These distributions can occur if the company is acquired, or taken public, or through dividends the company may distribute to investors. Such distributions are made via the Fund to members as these events occur.
Private equity investing is inherently risky. You should not invest unless you can afford to lose your entire investment. Because of this risk, Venture Capitalists and Angel Groups seek companies that offer the promise of a very high rate of return. Twin Cities Angels generally looks at companies that offer the potential of 5-20 times the original investment within 2-5 years. We would accept a lower multiple from an individual company that had the promise of a quicker return or less risk. All VC’s and Angel Groups seek to establish a balanced portfolio which can deliver a 20-40% IRR.
Contact the Executive Administrator who can share more specific information with you about membership requirements, expectations, application, and the meeting schedule: Contact us here
Upcoming Twin Cities Angels events are closed events and are open only to members and the invited members of presenting companies.
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