FREQUENTLY ASKED QUESTIONS
How long does it take to join the New York Angels? Prior to becoming a member, it is recommended that prospective members meet current members of the New York Angels. A list of current members can be found under the About Us tab. A prospective member will also be asked to attend at least one screening and one breakfast meeting in order to see if the New York Angels is right for them. The entire process should take a month.
What is angel investing? Angel investing is early stage investing in private companies. It generally is the capital financing after friends and family and before venture capital. Because of the early stage of investing, angel investing is very risky and illiquid.
Who are angel investors? Angel investors are wealthy individuals who invest in high risk, early stage ventures by reserving a portion of their total investment portfolio to provide emerging companies with seed and startup capital through direct, private investments. Their goal is to achieve higher returns than the typical public markets provide. Most angels are active investors - who contribute their time and experience, as well as offer introductions to valuable contacts essential to the company's success - because they enjoy the thrill of helping entrepreneurs grow their businesses.
What if I do not make an investment during the year through the New York Angels? The New York Angels are looking for active members. If you are not making investments or contributing to the growth of the group, then the New York Angels is not the right group for you.
In what dollar increments are angel investments made? Angel investing is an extremely risky asset class and should not be made if the investor is unable to absorb a complete loss of their investment. Each individual makes their own investment decision on where and how much to invest. In general, angel investments are made in increments of $25,000. The New York Angels expects all members to invest $50,000 a year in NYA deals.
How do I reduce the risk of angel investing? Angel investing by nature is a risky proposition. Like other investment classes, it has been shown that risk can be reduced by diversifying across a broad portfolio of angel investments.
