Is Tri State Ventures a Fund?
No, although many of our members have their own funds, each investor makes their own investment decision on each company.
Does Tri State Ventures charge fees for companies to present?
No, We do not believe in charging upfront fees for applying to present or to present. A startup has enough expenses as is! (Hey it's the angels who have the cash). See the following link for a good synopsis of angel fees. Forbes Link
What sectors are Tri State Ventures looking for?
We are not specific on any sector.
Will Tri State Ventures invest outside of New York?
Yes.
Will Tri State Ventures invest in foreign companies?
Yes, given the global economy we will consider foreign companies as well.
Will Google hit $10,000 a share?
I am sure all the entrepreneurs hope so.
Investing in early stage companies is risky. What advice do you offer on managing this risk?
The first step: learn as much about early stage investing as you can. Get to know your fellow members, the accumulated experience and knowledge of the TSV is a great place to start this process. TSV offers three educational seminars per year, too. Spend time working with a due diligence team; you'll learn the unique risks of each investment and improve your investment spotting skills. Lastly, diversify. Invest in multiple deals that you feel are of a high quality and spread your risk; it makes intuitive sense and our computer simulations concur. Angel investing is risky-- A November, 2007 academic study of angel investments found that angels lose some or all of their money in 52 percent of their investment deals because the companies go out of business. The most sophisticated angels make at least ten investments in order to make a return on their investments.
How do angels help small businesses?
In addition to financial capital, top angels mentor and coach their portfolio companies, often leading to more healthy growth. They introduce entrepreneurs to potential customers and investors, see around potential problem areas, and help the start-up firms gain credibility in their fields. It should be noted that the best angel capital goes to the innovative companies that have the potential to grow to hundreds of employees and $50 million in sales within 3 to 7 years of start-up.
Are angels different from venture capitalists?
Angels generally invest their own money in start-ups and very early stage companies, while VCs mostly provide capital they have raised from others to later-stage businesses for growth.
How many angel investors are there in the U.S.?
The best available estimates are that about 225,000 people have made an angel investment in the last two years (including accredited and non-accredited investors). Many more people could become angels - based on a net worth of $1 million or more, the potential number of angel investors is 4 million.
Why are angel groups important?
Angel groups are generally easier for entrepreneurs to find and often become the central connector of deals in their communities, include some of the most sophisticated and active angel investors in the country, have been recognized for job creation and generation of additional venture capital for companies, and are a leading indicator of angel investor activity.