Owing to the nature of venture investments, to participate in this asset class one must be an accredited investor according to SEC rules. Given the risky nature of Angel investing, not only is this a regulatory requirement, it is highly critical for members to know and be fully informed. Although it is a self accreditation, it is important for us that all current and future investors will be accredited.
As we support our portfolio of investments to be highly profitable, it is appropriate that our members will demonstrate a skill set or experience that can be leveraged. Displaying a solid track record of managing and or building successful businesses, as an entrepreneur or operating executive. The wide spectrum of our members’ unique skills come from diverse industry sectors such as automotive, medicine, law, technology, finance and more.
. Business Mindset
For some of our members, BA is their exposure to angel investing, some were already seasoned early-stage investors. It is important for our new members to demonstrate appreciation for early-stage companies. This could be in the form of a successful entrepreneur, experienced operators, evaluating companies, or mentoring and developing start-ups, which of a constant need a lot of tenderness and care.
. Social Capital
One of the most critical areas in which our members can best support our portfolio companies is through introductions to potential customers, marketing, business operation, hiring and general business advice. Members with an extensive and highly credible business professional network. We are looking for members that have extensive social capital networks and are willing to share for the benefit of growing and expanding the group.
The success of Birmingham Angels lies in the energy and drive of its members. We expect new members to get involved and dedicate time to BA activities. Participate in activities such as attending screening sessions, taking an active role in due diligence and identifying investment opportunities and bringing new potential members to follow their footsteps. There are also a number of Committees and Special Interest Groups where members collaborate and contribute.
. Financial Wealth
For the past three years BA has invested at a rate in excess of $3M per year. This pace of investing can be mainiane only if our members are willing to participate write checks. Our members should have the financial capability to invest access capital at least a minimum of $50,000 annually, and to participate in at least one BA investment per year. We are looking for active, approachable and fast moving investors.
Investing in early-stage companies is very different from managing other investments asset classes. It is highly recommended that a new member can demonstrate some of their level of commitment by investing or supporting at least one early stage venture over the course of the past 12 months.
. Risk Ability
Not only one must be Accredited Investors, we are committed that new members understand the inherent risks involved in angel investing. Research by the Angel Capital Association found that 52% of angel funded startups will fail with 0 return within the first three years, meaning that investors probably will lose all of their investment. It is also recognized that even successful investments will be paying the investors within 5-7 years.
Both our membership and our portfolio company founders are well-diversified on the gender, ethnicity, socioeconomic and other relevant fronts. We are looking for members that show deep appreciation, respect, sensitivity to all cultures and we welcome our members from all walks of life.