IMAF-Charlotte’s strength lies in its members – a group of highly successful men and women, residing or having interest in the greater Charlotte Region.
Our membership represents a well diverse group of professional experiences. The fund is actively open to individuals interested in joining our membership and providing investible funds, but moreso expertise that our portfolio companies need to move to the next level.
Being an Angel
An Angel is a successful high net-worth individual who invests his or her own money in start -up companies in exchange for an equity share of the businesses.
Often the question arises regarding the difference between Angels and Venture Capitalist (VC). While both fall in the area of Private Equity Investors (PEI), there are some important differences:
- Angels invest their own funds in a venture, while VC generally invest the funds of other individuals and organization (e.g. pension funds, insurance companies, etc.)
- Angels also invest in the early and very early stage of a company’s startup. VC general get involved must later in the company’s life cycle.
- Lastly Angels usually investment (as funds) relatively smaller amounts in a company (anywhere from $50,000 to $200,000), while VC generally take much larger position of several millions dollars.
So who are Angels
▪ Many Angels are former entrepreneurs themselves
▪ They make investments in order to gain a return on their money, to participate in the entrepreneurial process, and often to give back to their communities by catalyzing economic growth.
▪ Angels make a return on their investment when the entrepreneur successfully grows the business and exits it, generally through a sale or merger
▪ Angels tend to invest in companies that are located near them regionally (or to co-invest in a wider geography if a local investor they know and trust is involved)
▪ Angels are an important and vitale piece of the entreprenuial community providing funding option in the very early stages of company’s startup.
Accreditor Investor, SEC Definition
IMAF Charlotte requires that each member be an accredited investor. The federal securities laws define accredited investors in Rule 501 of Regulation D as:
▪ a bank, insurance company, registered investment company, business development company, or small business investment company;
▪ an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
▪ a charitable organization, corporation, or partnership with assets exceeding $5 million;
▪ a director, executive officer, or general partner of the company selling the securities;
▪ a business in which all the equity owners are accredited investors;
▪ a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
▪ a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
▪ a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.