Q. What is an angel investor?
A. Angel investors (sometimes known as “business angel investors”) are high net-worth individuals who make high-risk, potentially high-yield investments in start-up companies or small businesses looking to expand their market opportunities. Angel investors typically focus on companies that have already developed a basic concept and business strategy, and are in the seed stage of investment. An emphasis is placed on business enterprises with the potential for rapid growth.
Q. What are the membership requirements?
A. Vet-Biz Network individual members must be accredited investors who agree to be active participants in the group. Based on Rule 501 of the SEC regulations, an individual accredited investor is “Any natural person whose individual net worth or joint net worth with that person’s spouse at the time of his or her purchase exceeds $1,000,000, not including their personal residence; OR “Any natural person who had an individual income in the excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year. Institutional membership is available for corporations, financial or investment institutions.
Q. Are Vet-Biz Network members expected to invest a certain amount in these companies?
A. Members are asked to be prepared to make at least one investment per year of at least $25,000.
Q. Is there a membership code of conduct?
A. Yes! The Vet-Biz Network has the following membership code of conduct:
I will conduct myself in a professional manner at all times.
I will respect the privacy of other members and not provide their name to any third party without their permission.
I will keep membership information confidential.
I understand and recognize that Vet-Biz Network meetings and communications are focused on investment pursuits and will not solicit another member for business.
I will disclose to the group any relationship I have or may have with a presenting company, including any personal gain I may receive from the company.
Q. Is there a membership fee?
A. Yes. The Vet-Biz Network is a for-profit corporation. The annual membership fee for individual members is $1,500 and the annual fee for institutional membership is $5,000. The membership fees are used to cover some of the Vet-Biz’s operating expenses. Additional support to the Vet-Biz Network is provided by its Patriot Partners, Donations, Grants and through entrepreneur applications.
Q. What is an angel investor?
A. Angel investors are high net worth individuals or business people who make high-risk, potentially high-yield investments in start-up companies or small businesses looking to expand their market opportunities. Angel investors typically focus on companies that have already developed a basic concept and business strategy, and are in the seed stage of investment. An emphasis is placed on business enterprises with the potential for rapid growth.
Q. How are deals selected to present to the Vet-Biz Network?
A. Applications are reviewed by a screening committee on a monthly basis. The screening committee is looking for applications from companies that represent high growth and high yield potential. A select few of the applicants are invited to present to the full Vet-Biz Network membership in person or via online presentation. All members of the Vet-Biz Network are made aware of all submitted applications, and individual members may decide to contact applicants if they are interested in learning more about the investment opportunity, even though they were not asked to present.
Q What is our criteria for making an investment
A. Vet-Biz Network members make their own investment decisions. In general, members are looking for opportunities to invest in high growth companies that have a good management team as well as a competitive advantage in the marketplace.
B. Specifically, members will ask themselves:
Does the company address an important problem?
Does the company offer a good solution to the problem?
How many people have this problem?
Is the company’s solution better than anything offered by competitors?
Has the company made good progress to date in identifying its risks and mitigating them?
Does the company have a sound plan for the future?
Does the company have a management team who can execute this plan, and who can adapt when the plan fails?
Does the company’s plan offer a reasonable return to investors?
Q. Is the Vet-Biz Network a Venture Capital fund?
A. No. Vet-Biz Network is a group of accredited angel investors. Vet-Biz members make their own investment decisions and invest their own personal funds. We do have a sidecar fund that could co-invest in an opportunity if it met pre-established criteria.
Q. How long is the application process?
A. From initial application submission to final negotiation of investment terms can take anywhere from three to six months. Please keep in mind that an application can be delayed or denied funding at any stage in the process.
Q. Are there any fees to submit an application to Vet-Biz Network
A. There are no fees to submit an application to Vet-Biz Network but there is a success fee of the funded amount of 5% up to the first million, 3% on the second million and 2% there after. These funds are used for expenses and to grow and expand our program.