Investor Criteria
Accredited
Accreditation is an SEC definition which means a net worth of over $1,000,000, an individual yearly income of $200,000+, or a joint annual income of $300,000+.
Active
Investor Members must have an active intent to invest in startups in Colorado. Participating in every deal is not required but coming with the desire to make investments is needed.
Expertise
Investor Members often have expertise in a specific areas which they can use to help the companies post-investment.
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Responsive
Investor Members must be responsive to Directors regarding the investments circulated. Communicating investment interest or a pass is required for each opportunity circulated.
Syndicate Details
Denver Angels manages the sourcing, diligence, term negotiation, syndication, company support, and maintenance of investment.
Investor members, if desired, can get involved with any step in the process.
Sourcing
Denver Angels has gained statewide recognition as one of Colorado's best places to go for Seed+ and Series A funding. We partner with Colorado Startups, local accelerators, and a range of startup partners to source fast-growth companies across Colorado.
Relationship
The founder needs to have a previous relationship with the investor members or Directors of the group for a length of time. The relationship allows us to understand the founders and make a better investment decision based on who is steering the ship.
Due Diligence
Denver Angels has a metric based diligence process. For metrics, the company must have revenue, Year over Year (YoY) revenue growth, and the ability to quickly scale with funding. The company should also have a fundamental corporation legal structure (By-Laws, capitalization table, equity agreements, and more) necessary to be a fast-growth venture.
Deal Formation
Denver Angels manages term negotiation and investment structure. Working as a syndicate, as opposed to individuals, Denver Angels has a smoother deal process and can create a better overall deal structure and terms for both the company and investors.
Investment
Once directors are committed to investing in the company, the opportunity is circulated to the rest of the investor group. Each investor makes their own investment decision whether to participate with the partners in that particular syndication.
Syndication
Denver Angels creates a Limited Liability Company (LLC) for each investment to act as the investment entity. This process is called syndication, a common practice amongst the higher-performing angel groups. Each syndicated investment has a one-time cost for the legal, accounting, and tax requirements. These costs vary depending on how many investors invest and are distributed as a small fee to all participating investors.
Company Support
Denver Angels will help grow companies after the deal is done. This support includes everything from taking on board seats, making connections to customers, introducing future round investors, and providing strategies for growth. We've found that Seed+ and Series A investors can help set a company on a faster growth trajectory, and we aim to be a great partner.
Investment Maintenance
Denver Angels will help protect the syndicate's investment in future round negotiations and manage all future distributions, liquidations, and exit events for the investment.
Investor Nights
Investor Night is the quarterly connection event for investor members to meet one another, get updates from portfolio companies, and meet the entrepreneurs behind opportunities in circulation.
At these events, companies get time to meet the investors in the group.
Held on the The Third Wednesday of January, April, July, and October