Members of ArcAngels are given the opportunity to work closely on diverse and interesting deals and invest in entrepreneurs and their businesses across all sectors. A fundamental goal of ArcAngels is to achieve upper quartile returns for members from a portfolio of investments over time.
ArcAngels is an angel investment network, not a fund. As with most Angel networks, the intention is that investors will take an active role in the business in addition to a financial investment. Meetings will take place quarterly and additional events will be scheduled for interested ‘would-be’ members to learn more about the opportunities to invest and connect with investors.
The ArcAngels Investment Process typically involves seven steps:
- Screening Meeting to meet the entrepreneur and company
- Company presentation at a Member Meeting
- Deep Dive Meeting with the entrepreneur before formally structuring a Deal Team
- Formation of a Deal Team for due diligence
- Making the investment
- Monitoring the investment
- Exit/IPO/wound up.
Prior to any deal, the investment process will involve robust and rigorous due diligence to evaluate an organisation’s operations, financials, management and validation of their product or service, and any terms and conditions relating to a potential deal.
Members of ArcAngels focus on for-profit organisations with a woman founder or leader or a women in an executive position, located in New Zealand. There may be instances where an organisation will be considered if founded by or led by a diverse management team. The organisation will have a scalable product or service, proven customer base, albeit small, and a validated business model. While the prospect of being an export capable business is attractive, also important is an advantage over the competitor – be it expertise of management, deep capability of the team or intellectual property that stands them apart.
ArcAngels is most interested in businesses in the industry sectors of:
- IT and telecommunications (digital media, mobile, web)
- clean tech/renewable energy
- medical devices
- food and beverage
- financial services
When reviewing an investment opportunity ArcAngels will use GUST, an online platform of leading angel organisations. GUST is where members are informed of the status of a deal as due diligence progresses. It is where investors set their deal interest, ratings and manage and share deals, while on the flip side entrepreneurs can profile their businesses, apply and track investor activity.
Applicants for ArcAngel membership must be eligible as defined by the Securities Act. Eligibility is defined as:
- Wealthy: net assets of at least $2,000,000; or an annual gross income of at least $200,000 for each of the last two financial years
- Experienced in investing money and experienced in the industry or business to which the security relates as defined by the Securities Act.
ArcAngels is closely aligned to the Angel Association of New Zealand and other Angel organisations. In line with these organisations in New Zealand, a $1,000 fee will be requested along with a signed Membership Application and a Certificate of Wealth from an accountant or a Certificate of Experience from an independent financial services provider.
As ArcAngels’ dealflow expands and progresses, we will encourage members to build a portfolio of businesses during a three to five year period. At a minimum, an investment of $10,000 per year will be encouraged. Research from the Angel Capital Association and the Kauffman Foundation shows a dramatic increase in returns from angel investing the more investments one makes.
Members will be expected to be active participants in our investment process. This includes attending screenings and meetings and joining due diligence teams where there is interest in a particular business. Our expectation is that members will participate on one due diligence team per year and/or lead a deal. The requirement is to participate on at least one deal team per year.
Become a member
To join ArcAngels, check the Investor section to ensure you are able to fulfil the ArcAngels’ annual investment and activity requirements. Download our Membership Guidelines.
There are three steps to becoming a member:
- Fill out and sign the Membership Application Form, Confidentiality Agreement and Securities Act Eligibility Declaration.
- Obtain a Certificate of Wealth from an accountant or a Certificate of Experience from an independent financial services provider.
- Post to: ArcAngels, PO Box 5522, Wellesley Street, Auckland 1141; or send signed PDF documents to firstname.lastname@example.org
Members will be admitted to ArcAngels on a rolling basis with each term beginning on the date that the member joins and ending one year later. An invoice for the Annual Membership Fee of $1,000 +GST will be sent to the applicant for payment within 30 days.