Comparison of business angel networks explained

According to the Angel Capital Association, an angel group or angel network is individual angel investors joining together with other angel investors to evaluate and invest in entrepreneurial companies. These angels typically pool their capital to make larger investments. Some characteristics of angel networks are: meeting regularly to review business proposals, deciding collectively whether to invest or not, and working together to conduct due diligence to validate the plans, statements and history of the companies founding team, Between 10,000 and 15,000 angels are believed to belong to angel groups in the U.S. Angel groups also sometimes co-invest with other angel groups, individual angels and very early-stage venture capitalists to make larger, aggregate investments.^[1]

Types of angel networks

There are three types of Angel Networks.

1. Non- profit Business Angel Associations : Association of Angels facilitating Angel's investments in local Companies for a stake in the company
2. Incubators- Group of Angel hosting companies in exchange for a stake in the company
3. For Profit Angel Networks - Networks enabling Entrepreneurs to Meet Business Angels. They often work on a Success Fee and Entrance Fee basis.

Types of fees

1. Equity Fee- Proportional stake of the amount invested in the company concerned.
2. Registration Fee- Fee paid by Entrepreneurs in order to have access to the Angel Network.
3. Success Fee- Percentage of the investment paid to the Network.

Comparison table

Network Name	Number of Angels	Type of Network	Type of Funding	Country
	4,500	For Profit	RF & SF
	120	Non Profit	EF	France
	120	Non Profit	EF
		Non Profit	EF
	60	Non Profit	(none)	United Kingdom
Oxford Angel Network	90	For Profit	EF	United States
	125	Non Profit	(none)	United States
		Incubator	EF	Ireland
	300	Non Profit	EF	United States
	4,000	For Profit	RF & SF			Japan
NEXEA Angels	100	For Profit	Success Fee	Malaysia

See also

• Angel Investors
• Incubator

Notes and References

1. Web site: FAQs ACA. www.angelcapitalassociation.org. en-US. 2018-11-09.