Compassionate Capitalist Talk Radio: Each angel investor group offers different benefits to high networth individuals that understand the benefit of investing in early stage companies. Understanding their motivation helps entrepreneurs decide which groups to pursue as help those building angel groups understand how to attract members.
Investors will join a group for the community and social aspect as much as the business purposes. For business purposes it is to see better deal flow, share the burden of due diligence, and have greater leverage in negotiating the terms on the deal. Investors need to understand the structure of a group they are joining. In some groups they all make individual decisions and others they make group decisions. In some groups they pool their funds and have capital calls, and so the investor is very passive in the decision process but can add on their funds. Investors wanting to join a group should understand these aspects of a group and any entrepreneur preparing to present to a group should find out what their decision process is all about.
This radio show, podcast, explores the different types of groups and the motivations for angels that join those groups, and also what entrepreneurs should expect when pitching or meeting with those groups.