WHAT IS AN ANGEL INVESTOR?
An angel investor is an individual who makes direct investments of personal funds into a venture, typically early-stage businesses. This is in contrast to venture capitalists who typically raise and invest third party funds. Because the capital is being invested at an early, risky stage in a business venture, angel investors must be capable of taking a loss of the entire investment; as a result most angel investors are relatively high-net-worth individuals.
WHAT IS AN ANGEL GROUP?
An angel group is a formal or informal assembly of active angel investors who consider co-investing in businesses. Key characteristics of an angel group are: organization and control of the group by one or more member angels (who manage the group's processes and procedures), and collaboration by member angels in the investment process.
WHEN AND WHERE DOES branch venture group MEET?
Meetings are limited to angel members and invited guests only. Branch Venture Group meets once per month in Boston, MA.
IS MEMBERSHIP IN branch venture group RESTRICTED?
Yes. Please see BECOME A MEMBER for a description of membership requirements above.
WHAT IS branch venture group's POLICY ON GUESTS?
Guests must be sponsored by an existing member and are welcome to attend one meeting given advanced notice to the Partners. Guests’ behavior must conform to Branch Venture Group’s Code of Conduct. Before investing in an opportunity presented at a group meeting, guests must be approved as members and agree to the terms of the Membership Agreement.
MUST I MAKE A MINIMUM INVESTMENT EACH YEAR TO REMAIN A MEMBER?
Members are encouraged to be active investors, but since each investor’s threshold and interests differ, there is no strict investing requirement. In order to keep Branch Venture Group’s membership as active and vibrant as possible, the Partners reserve the right to refuse renewal for members who are neither investing nor making active contributions to the community.
IS THERE A MINIMUM OR MAXIMUM AMOUNT OF MONEY I MAY INVEST?
No. Individual deal terms may impose per-angel minimums or per-angel maximums on a deal-by-deal basis. Typical deal minimums will range from $10,000 -$25,000.
HOW ARE INVESTMENT DECISIONS MADE?
Branch Venture Group members will pool their expertise, experience, and observations and work together on due diligence to review deals of interest, but in the end, each member will make his or her own personal investment decisions.
DOES Branch venture group HAVE ITS OWN "SIDE-CAR" FUND?
No. Branch Venture Group encourages active rather than passive involvement by its angel members and does not provide a passive conduit for investing. However, we have the opportunity to syndicate deals and with other funds.
HOW IS branch venture group FUNDED?
The administration of Branch Venture Group is funded by its members’ dues. Members of Branch Venture Group invest directly on their own behalf.
DOES branch venture group MAKE MONEY OFF MY INVESTMENTS?
No. Branch Venture Group does not charge any management fee or receive carry on your investments, nor does Branch Venture Group receive (nor would it ever consider receiving) any finder or referral fees from the companies in which you invest. You keep all the returns you generate. Branch Venture Group's role is to provide its membership with the best opportunities in which to invest.
HOW WILL PRESENTING COMPANIES BE SELECTED?
A screening committee consisting of the Partners and interested members reviews plan submissions and meets to discuss and select the opportunities likely to be of greatest interest to the group. Any member is welcome to apply to join the screening committee.
HOW SHOULD COMPANIES APPLY FOR FUNDING?
Go to the Entrepreneurs section of this site, review our investment criteria, preferred stages and investment process and then visit our Gust profile here.
ARE THEIR GEOGRAPHICAL RESTRICTIONS ON WHERE branch venture group WILL INVEST?
Yes. Branch Venture Group focuses on companies located in Boston or within a few hour’s drive of the Boston area but we will consider opportunities from other regions in the United States.
HOW IS DUE DILIGENCE CONDUCTED?
Members conduct due diligence themselves on a voluntary basis. A lead diligence coordinator is generally chosen, an agreed-upon diligence checklist is utilized (which is never less thorough than the minimum guidelines set by the Angel Capital Association), groupware and collaborative tools are utilized wherever possible to enhance efficiency for members and entrepreneurs, and diligence reports are shared openly within the member group (and with syndication partners from other groups, where appropriate). Diligence reports are not shared outside of the group or with the entrepreneur.
HOW IS branch venture group RUN?
The Partners administer the group and welcome the input of Branch Venture Group members on how the group is administered. Branch Venture Group works in service of members and consults with members on matters relating to long-range issues and fundamental policy questions.
HOW DO I LEARN MORE ABOUT ANGEL INVESTING?
Branch Venture Group organizes programming for new members as an intensive introduction to angel investing. Branch Venture Group has speakers on relevant industry topics as part of the monthly meetings. Members also learn from other experienced angel investor group members, and the Partners can direct interested members to additional materials as needed.