Pitching to investors
FREQUENTLY ASKED QUESTIONS
What is a business angel investor? A business angel investor is an individual who makes her/his own decision to investment directly into a business with her/his own personal money. Because this capital is often invested at a risky time in a business venture, angel investors should be capable of taking the entire investment loss without materially impacting her/his life or family. Angel investors are typically high-net-worth individuals whose annual income and/or net worth meet the minimum threshold for an “accredited investor” as defined under the Securities Act of 1933.
What is an angel group? An angel group is a formal or informal assemblage of active angel investors who cooperate in some part of the investment process. Key characteristics of an angel group are: control by member angels (who manage the membership entity or have control over the entity’s managers) and collaboration by member angels in the investment process.
Must I make a minimum number (or amount) of investments each year in order to remain a member? eCoast members must be willing to invest at least a total of $40,000 during the first two years of membership. How are investment decisions be made? Investment decisions are made independently by each individual member investor. While evaluation information is often shared across the membership, each member is responsible for her/his own due diligence and investment decision.
How are presenting companies be selected? Companies are selected through the screening process conducted by eCoast Screening Committee.
How is due diligence conducted? Due diligence is the responsibility of each individual investor. Members frequently organize to share the work load and focus on specific areas. Due diligence activities are also often shared with and by other investors outside of eCoast. At times outside firms and individuals are brought in as content area specialist (e.g., intellectual property) to help investors better understand the investment.
How does eCoast operate? eCoast is a member network lead by its volunteer members without a formal structure or entity.
How are eCoast activities funded? Through donations of its members to cover common expenses. Companies are funded independently be its individual members.
How often do eCoast members meet to hear new investment opportunities? Roughly once per month. eCoast Angels
Where are monthly meetings held? Currently online via Zoom