Frequently asked questions

 

General Q&A

 

WHEN IS THE CONFERENCE?

Screening Day is September 20th, 2017 and Selection Day is November 15th, 2017.

 

HOW MUCH DOES IT COST?

Accredited Investors commit a minimum investment of $1,500 to participate in the final investment but do not pay conference fees.

Companies pay a $50 application fee. 12 companies are selected to present on Screening Day (9.20) and 3 finalists will move on to Selection Day (11.15).  

 

I AM NOT AN INVESTOR and I do not HAVE A COMPANY LOOKING FOR INVESTMENT, CAN I COME WATCH?

Screening Day: Sponsors are allowed to attend Screening Day (9.20). 

Selection Day: Open to the public for $25/ticket.

 

WHAT IF my company is selected for screening day but we fulfill OUR FUNDING ROUND before the conference begins?

We will refund your $50 Application Fee if you no longer have room in your investment round and do not wish to attend Selection Day.

 

WHAT ARE THE TERMS OF THE INVESTMENT?

If terms are already set and there is a lead investor already in, the investment will go in at those established terms. If not, they will be negotiated by the investors and the company. 

 

THROUGH WHAT ENTITY DOES THE INVESTMENT TAKE PLACE?

One single entity: CAC17FUND LLC

 

DOES THE INVESTMENT COME ALL AT ONE TIME OR IS IT OVER TIME BASED ON MILESTONES?

All at one time. 

 

WHO WILL BE AT THE SELECTION DAY?

The Charleston community and participating investors attend Selection Day, which will consist of three pitches from our finalist companies along with the companies participating in The Harbor Accelerator CoHort 8.

 

HOW DO I KNOW IF I AM AN ACCREDITED INVESTOR?

The S.E.C. posts updated information about the definition of an accredited investor HERE.

The most common certifications come in the form of the following definitions:

1) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

2) Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000

 

have a question we didn't answer? or, want to learn more about how you can get involved?

 
 

Angel Investing Q&A

 

What is an angel investor?

An “angel” is a high net worth individual who invests directly into promising entrepreneurial businesses in return for stock in the companies. Many are entrepreneurs themselves, as well as corporate leaders and business professionals.

 

How much do they invest and in how many businesses?

The Center for Venture Research estimates that U.S. angel investors invested $22.9 billion in about 67,000 small businesses in 2012. Many of the investments were in start-up or very early-stage companies.

 

What kind of companies do angels invest in?

Angels look for new innovative companies that can grow quickly in sales and value (creating jobs along the way). Examples of angel-backed businesses include Google, Yahoo, Amazon, Starbucks, Facebook, Costco, and PayPal.

 

How do angels help small businesses?

In addition to financial capital, top angels mentor and coach their portfolio companies, often leading to more healthy growth. They introduce entrepreneurs to potential customers and investors, see around potential problem areas, and help the start-up firms gain credibility in their fields.

 

How are angels different from venture capitalists?

Angels generally invest their own money in start-ups and very early stage companies, while VCs mostly provide capital they have raised from others to later-stage businesses for growth.

 

How do angels relate to the upcoming equity crowdfunders?

Angel groups (and individual angels) are likely the next stage of financing and it is important to ensure that entrepreneurs have access to robust angel capital after crowdfunding. These types of accredited investors are also important to entrepreneurs for their mentoring and advice, and for better structuring investments for long-term growth.

 

How many angel investors are there in the U.S.?

The best available estimates are that over 300,000 people have made an angel investment in the last two years (including accredited and non-accredited investors). Many more people could become angels – based on a net worth of $1 million or more, the potential number of angel investors is 8 million.

 

Is angel investing risky?

Yes. A November, 2007 academic study found that angels lose some or all of their money in 52 percent of their investment deals because the companies go out of business. The most sophisticated angels make at least ten investments in order to make a return on their investment, counting on one or two to provide nearly all of their return. ANGEL GROUPS

 

What is an angel group?

Individual angels are joining together with other angels to evaluate and invest in entrepreneurial ventures. The angels can pool their capital to make larger investments. The Angel Resource Institute has 385 American groups in its database.

 

What are the important statistics for angel groups?

In 2012, the median size for an angel group deal was $600,000 (often with several groups involved) per the HALO Report. Group investment was distributed across the country, with two-thirds outside the traditional venture states of California and Massachusetts.

 

Is there are group near me?

Probably. There is now a group in operation or development in almost every U.S. state. The number of groups has more than tripled since 1999.

 

Why are angel groups important?

Angel groups are generally easier for entrepreneurs to find and often become the central connector of deals in their communities, include some of the most sophisticated and active angel investors in the country, have been recognized for job creation and generation of additional venture capital for companies, and are a leading indicator of angel investor activity.

 

Where can I get more information?

Go to www.angelcapitalassociation.org. The Angel Capital Association has 200 affiliates and member angel groups, which represent 10,000 accredited angel investors in 50 states .