The Angel Investor Collective
F.A.Q.
Frequently Asked Questions
How will investments be made?
As an angel you will see a deal from the in-person events (or at times via email). You will have the ability to express your desire to invest, how much you wish to invest and your ability to help the founder. After all interest is gathered from angels, you will be informed by the Tribe how much allocation you secured, along with instructions to finalized investment and wire funds. Allocation will be determined by speed of commitment and ability to help the founder.
What is an SPV?
In simplified terms an SPV is a deal by deal fund. A Special Purpose Vehicle/Entity (“SPV”) is a business entity that has a special limited purpose. SPVs are often created to protect assets and separate liabilities of a parent or subsidiary company. Assure one of the nations leaders in SPV creation will be administering all Tribe SPV’s to give each investor comfort having managed over $6B in capital through SPV’s over the past 10 years. Assure will function as the custodian and not release funds until a signed investment agreement has been presented.
What is the Benefit of Investing Through an SPV?
SPV’s usage has grown significantly over the past 10 years, in fact 51% of all top-tier U.S. VC deals had participation from an SPV in 2020. The main benefits of participating in an SPV is access to deals that would be hard to secure allocation – saving you time on evaluating which deals to invest in. Other key benefits include flexibility of choosing the deals, choosing check size, obtaining information rights and pro-rata rights. There are many other benefits which we are happy to talk through, however these are the most referenced.
What Are The Terms of Investment?
As part of diligence our team will negotiate terms with the founder, however each deal will present different terms. For nearly all Angel deals the SPV (consolidated angel) will invest into a convertible note or SAFE in order to decrease legal costs. For each Angel stage deal there will be no management fees, 10% carry associated with the SPV. As a benefit to Tribe members will be given the opportunity to invest in later stage deals, especially for the most active angels (Note: carry may differ depending on the stage of the company).
How Are We Vetting Deals?
As part of our Tribe of Angels we are evaluating deals in each ecosystem that have venture capital like returns. We focus on startups from the local ecosystem that have large market sizes, great business models and founding teams. In doing so we evaluate more than 30 angel stage deals from the local ecosystem each month to present the best. Have an investment recommendation? Please have the founder fill out their information here (Our tribe has a close partnership with Assure Syndicates in evaluating deals).
Be Part of Tribe Angels Today!
