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ACA Members and angel group associations have
developed white papers on the best practices – or perhaps "common
practices" – of operating in angel groups. More information related to
these documents is available at each organization’s website. In addition,
some angel groups maintain public documents of group and / or regional
best practices on their web sites. For more information on the practices
of angel groups, please click here
the Directory page.
Members of ACA can also click here to view additional documents on the Members only section.
BEST PRACTICES
Angel Capital Association
Guidelines for entrepreneurial fees – Includes 2008 ACA recommendation
to angel groups regarding charging fees and transparency during the deal
selection process based on a survey of ACA member groups’ fee practices.
Angel Capital Education Foundation / Kauffman Foundation
The ACEF Best Practices Committee worked in
concert with students from Columbia University, New York University, and
Belmont University to describe the processes used by some of the most
respected angel groups in America or other issues that related to angel
investing. The papers, released in 2007 and 2008, include:
Valuing Pre-Revenue Companies - The Kauffman Foundation’s Web site for high growth entrepreneurs, eVenturing.com, commissioned a series of articles and tools on valuation of early-stage companies. The articles are mostly written by two nationally-known angel experts: Luis Villalobos (Tech Coast Angels) and Bill Payne (Vegas Valley Angels).
Business Angel Groups Growing in North America - White paper establishing trends, organizational structures and general best practices for operating angel groups, established as a result of Angel Organization Summit I. (2002)
Angel Investing Group Best Practices - Managing members, Guiding Presentations and Finding the Right Deals - White paper produced as a result of Angel Organization Summit II. (2003)
ACEF Newsletter – The e-newsletter highlights best practices and activities in a wide variety of areas, from investment processes to group operations, to public policy. (2004-2008)
National Angel Capital Organization
Age of the Angel: Best Practices for Angel Groups – The NACO, in collaboration with its partners, has recently completed the first draft of the Best Practices for Angel Groups and Investors in Canada. This is the first such document of its kind in Canada and is part of the NACO's mandate to support and cultivate the angel investment sector. (2008)
Primer for Angel Investment in Canada - Compilation of articles by angels, academics, business and economic leaders across Canada introducing best practices for creating and sustaining successful angel groups and outlining the importance of angel investing in the future economic prosperity of Canada. (2004)
COMMON DOCUMENTS
Angel groups and associations have increasingly worked to develop common documents for group and syndicated investments. The following are several examples:
Angel Capital Association
Members of ACA can view examples of common documents currently in use by ACA member in New England for group and syndicated investments by clicking here . Documents include a co-investment process outline, due diligence treaty, two-page deal description template, and minimum standards for due diligence.
Kauffman Foundation
"Angel Investment Group, Networks, And Funds: A Guidebook to Developing the Right Angel Organization for Your Community" – by Susan Preston, in association with the Kauffman Foundation. The extensive appendices of this guidebook include a number of standard or recommended documents including angel membership application, education program agenda, financial worksheet, funding application, screening worksheet, due diligence questions and checklist, glossary of terms, and two sample term sheets with explanations. Click on each of the following to access the specific document.
National Angel Capital Organization
Click here to access the NACO best practices document recently released as part of the best practices document. Documents, located in the appendices, include investor declaration, membership application, term sheet, shareholder’s agreement, subscription agreement, and voting trust.
European Business Angel Network
British Business Angel Association
Y Combinator
Click here to view examples of Series AA Equity Financing Documents used by Y Combinator startups.
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