FAQs
- Do the Reno Angels make a single group investment? No. Each interested member of the Reno Angels makes an individual investment. Companies in which the Reno Angels will need to prepare a separate set of documents for each investor.
- What is the Reno Angels’ long-term strategy when investing in a company? While the Reno Angels expects each company in which it invests to be profitable, the Reno Angel’s long-term goal is for the company to be acquired by another company or to go public through an IPO. These “liquidity events” provide the maximum return on the Reno Angels’ investments, so you should plan to discuss your exit strategy during your presentation.
- Do the Reno Angels invest in every company that presents to them? No. The Reno Angels invest in only a select few of the companies that present to them. This is not a reflection on you, your product, or your company, but rather whether a company meets specific investment criteria, which changes based on a large number of external factors.
- What kind of companies do the Reno Angels invest in? Generally, the companies are ones that offer VERY high growth potential, can scale and possibly exit. We generally invest in companies that we believe have the potential to grow to tens of millions within five years. This should be in either a developing market or in an existing market with national scope.
- Are there any types of companies in which the Reno Angels will not invest? The Reno Angels generally do not invest in nonprofits, companies offering non-convertible debt instruments, retail operations or store-front businesses, motion picture or television projects, or the buyout of existing businesses
- What is “pre-money valuation”? This is the valuation of your company before you receive any additional investment or financing. Please be aware that “ideas” are simply that and have only a nominal value. In contrast, companies have value, but generally only if they’re generating revenue. If you’re in pre-revenue mode, your valuation is probably much more modest and is more closely tied to the actual investment you’ve made so far in your business. Having patents or sales contracts can significantly increase your valuation, but in general, the earlier-stage you are, the lower your valuation will be.
- How much money will the Reno Angels invest in a company? This amount varies and is done on an individual basis. Capital funding generally starts in the $25,000 range. When you discuss funding needs, please be prepared to outline the specific amounts of funding you need for specific expenditures, rather than the total amount you may need in the future. Angel investors are more likely to invest in companies that requires a series of funding “tranches” tied to measurable milestones than to companies requiring very large initial investments.
- What kind of backgrounds do the members of the Reno Angels have? The members of the Reno Angels have experience working for or owning companies in a very wide range of industries. For the purposes of your presentation, however, you should assume they are unfamiliar with your particular industry.
- What is an Angel Investor? Angel investors provide seed and startup capital for early stage ventures by reserving a portion of their total investment portfolios for emerging entrepreneurs. 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. To maximize the value added, most angels specialize in industries or technologies they understand with special emphasis on those within close geographic proximity.
- What is an Angel Group? Angel investor groups vary in structure, from formal to informal. Formal groups follow strict participation requirements that guide members’ minimum investment activity and event attendance. Our individual members invest in specific deals of interest, not necessarily as a collective group.
