INVESTMENT PROCESS
 

 




The following is a brief summary of the New York Angels investment process:
Companies apply online via Gust.com or Newyorkangels.comThe company will complete a one page executive summary outlining the key characteristics of the company. A team of industry experts will review the application and determine if it is a good fit for our group. If it is deemed a good fit, then the company will be invited for an initial screening presentation. It is always preferable to have a member of the New York Angels sponsor the company to attend screening. Members can refer deals directly through Gust into screening.-

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Screening meetingScreening is held once a month and will consist of a 15 minute presentation to approximately 15 - 40 members. If there is enough member interest at screening and discovery co-leads are identified, then the company moves on to discovery.

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Discovery. Discovery is a one-to-two hour meeting with more in-depth discussion focusing on key issues affecting the future success of the business. If there is sufficient interest among members to proceed, due diligence follows.

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Due Diligence. During Due Diligence, interested investors will verify the statements made in the business plan, presentation, and financial projections. They will thoroughly research the team's background and track record. An initial discussion of valuation and terms will happen early in Due Diligence to make sure the two parties are within working distance of each other and that Due Diligence can proceed.

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Term Sheet Negotiation. After completion of due diligence and depending on whether there's already a lead investor, interested angel group members may present a terms sheet that defines the structure of the investment deal - including type of equity and board of directors representation, using industry standards and provisions. You can find a model of our term sheet at http://bit.ly/ModelDocsNYA.

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Breakfast Presentation to Membership.  Once an agreed to term sheet is completed and there is at least one NYA member committed to invest, a final 20 minute presentation is made to the entire membership. There may be an additional one-to-hour meeting to review the deal with any new prospective investors.
 

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Funding and Beyond.  When all parties are satisfied with the terms and language contained in the term sheet, the investment opportunity can be executed. Closing the deal is not the end of the funding process. It is expected that investors will provide the company with access to their network of value-added contacts and offer their guidance for growth and success of the venture. 
 

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