For Companies
What is an angel group?
It is a group of investors who regularly convene as a group, in-person or
remotely, to evaluate and invest in startups. Angel groups typically focus
on a concentrated geographic region, typically a single state or region of
a state. The goal is to use the group members’ local or specialized access
and knowledge to the group’s advantage, and to convene a group of like-minded
individuals who nevertheless may bring a diverse set of skills, expertise,
and experiences. Angel groups typically invest at the seed stage of a startup,
and usually do not participate in the Series A or later stages.
What is FAU Tech Runway Investor Network?
The FAU Tech Runway Investor Network (FAU-TRIN) is a professionally-led,
member-centered angel investor group dedicated to improving the investment
experience for both entrepreneurs and investors who share a mutual affinity
through their affiliation with FAU.
What are the advantages of angel groups?
Investors who band together can also split the considerable due diligence
work that any major investment requires. Beyond being a huge time-saver,
a collaborative operation allows the funders to draw on each other’s
experience and expertise. The decision to invest in a business is still up
to the individual, but in this way, prospective investors get input from
others in the group before they decide whether to get involved.
What are the requirements to receive an investment from the FAU-TRIN?
FAU-TRIN invests in FAU-affiliated startups. Companies
must meet the following criteria to be considered for investment:
- Have a founder, executive, or board member who is an
FAU alumnus, faculty, staff, student, or parent of a student.
- Raising seed or Series A equity capital or syndicating
later-stage equity financings with an existing institutional lead investor
- Located in the United States
When filtering investment opportunities for review by
FAU-TRIN members, screening committee looks for the following attributes:
- A large market opportunity
- A unique value propositions
- Proprietary technology, intellectual property, or other basis for sustainable competitive advantages
- A dedicated management team (right set of skills, drive, experience, and temperament)
- A corporate structure that allows for equity investment at defined terms and conditions
- A strategy and plan that has the potential to produce venture grade returns
Do FAU-TRIN members provide support other than being shareholders in portfolio companies?
Members provide support and guidance for companies based on their experience
and expertise. This might be advice on developing business strategies and
tactics, introductions to potential partners or customers, assistance with
hiring, and future financing rounds.
What is the process for companies seeking investment?
Companies initiate the process by completing an online application.
Once the application is completed, the following process steps will be followed:
- The screening committee will assess the company’s readiness for
investment and fit with investor member preferences.
- Once the screening is completed, FAU-TRIN invites three or four
companies to the investor group meeting. Founders pitch to our
entire group of investors and then receive an indication of
interest within one week.
- The FAU-TRIN investment process starts with a teleconference
to review an opportunity. The meetings usually last about
60 minutes. This call is scheduled for members to share their
opinions, concerns, and questions. If members have further
questions, FAU-TRIN staff asks company founder/CEO to answer
these questions within one week.
- Next step is for due diligence team to complete its review,
and then send out an investment memorandum to the entire
FAU-TRIN group with its summary and recommendation.
The investment memorandum discusses the strengths and
weaknesses of the investment opportunity as well as the terms of the deal.
- Once the investment package has been distributed to the FAU-TRIN
membership, the managing director makes a call for capital
commitments to the membership with a deadline to respond.
Members typically have 10 business days to review the materials
and ask additional questions. The members are reminded that the
investment materials contain confidential information and are not
to be distributed or shared.
- After the deadline has passed and the company is ready to close
the transaction, the managing director introduces the group of
FAU-TRIN members investing in the deal to the closing attorney
representing the company. Members receive a copy of the investor
documents from the closing attorney, as well as wire instructions.
Members are investing directly into portfolio companies. Once the
deal has closed, members receive stock certificates or other investment
instruments directly from the company and/or closing attorney.
- The operating team will provide support and resources at all stages of the process.
Who is performing the diligence on the opportunities?
The diligence is performed by the due diligence team members with the support of FAU-TRIN staff.
What should I do to prepare for the FAU-TRIN meeting/presentation?
Many presenters send their slide deck and executive summary
for the FAU-TRIN membership. The FAU-TRIN team is happy to
review your presentation with you to be sure it is on target.
Subsequent meetings and due diligence will cover additional
topics more in-depth, and could include product usage statistics,
product development plans, pricing plans, detailed historical and
projected financial statements, capitalization tables, hiring plans,
partnership and licensing agreements, customer contracts, customer
and prospective customer reports, marketing survey results, product
ratings and reviews, intellectual property documentation, and other
corporate documents.
How long should my presentation be?
Each company will deliver a 10-minute slide presentation (uninterrupted),
followed by 10 minutes of Q&A with members & guests.
Where will I be presenting?
Currently, The FAU Tech Runway Team is forging ahead with all
program meetings and events to the extent these can be facilitated
via videoconference. Thus, FAU Tech Runway Investor Network meetings
will be also held via videoconference until further notice.
If members cannot attend a FAU-TRIN meeting, how do they learn about an opportunity?
FAU-TRIN records the company presentations and distributes the
video link to the membership for review via email. Additionally,
each member will receive the digital materials the day after the meeting.
Does FAU-TRIN sign non-disclosure or confidentiality agreements with companies it is considering for investment?
FAU-TRIN does not sign non-disclosure or confidentiality agreements.
Company information is shared with members through a private, secure
online platform. Members are expected to keep all information confidential
and to use information only for purposes of making investment decisions.
Members are not bound by a confidentiality contract with FAU-TRIN; however,
the operating team closely monitors the dissemination of information within
the network, and any investor member who distributes information outside the
network without consent will likely be asked to leave the group. At later
stages in the diligence process, individual members may be asked to sign
an NDA directly with the company. These agreements will not include
FAU-TRIN as a party.
Can entrepreneurs and companies see a list of members in FAU-TRIN?
No. FAU-TRIN respects the privacy of members and will not publish a
membership list. As companies enter the formal diligence process with
FAU-TRIN, interested members will be introduced to the company.
What kinds of deals are the members likely to see in a year’s time?
FAU-TRIN applicant companies cover all industry sectors.
Members
What are the membership requirements for the FAU Tech Runway Investor Network (FAU-TRIN)?
FAU-TRIN members are required to be affiliated with Florida Atlantic
University and be accredited investors. An Accredited Investor must
be an individual or an institution as described in Rule 501(a) of
Regulation D under the Securities Act of 1933 promulgated by the United
States Securities and Exchange Commission (“SEC”).
Most FAU-TRIN members are alumni, faculty, staff, students, parents, and donors.
Graduates from any of FAU’s undergraduate or graduate programs are eligible for membership.
Members are encouraged to help source high quality investment opportunities and
attend the meetings when possible. Participation in screening calls/meetings and
due diligence efforts are recommended but not required.
Are there minimum annual investment amounts or annual membership fees?
Minimum participation levels will be determined by the entrepreneur
providing the investment opportunity; anticipated minimums range
from $5,000 to $10,000 per voluntary deal.
Members are required to pay a $1,500 annual membership fee. Members
may join anytime during the calendar year. Dues support 12 months
of membership. All revenue from dues goes towards supporting a
portion of the operational, administrative, and staffing costs to run the group.
What analysis or advice does the operating team provide to members considering a particular investment?
The operating team provides guidance and support throughout the investment process, including:
- Sourcing deal opportunities to supplement deal referrals from members
- Screening initial company applications
- Managing information flow between the companies and members
- Managing process and communications during due diligence
- Performing diligence tasks and analysis as needed
The team does not provide investment recommendations. All investment
decisions are made by individual members and all investments are made
directly from members to companies.
What are the responsibilities of FAU-TRIN members?
Members are expected to be active in the network. This includes
actively sourcing investment opportunities for the group,
collaborating and contributing to diligence processes and investment
decisions, participating in the investment process on a regular basis,
and providing support and guidance for portfolio companies based on
experience and expertise.
Is there any management or investment fee?
FAU-TRIN does not collect ongoing management fees or transaction
-based investment fees. All operations are funded by membership
fees, FAU, and donor support.
Are members committing capital to a fund? Is there a requirement
that members invest in opportunities that other members have decided to invest in?
Members are not committing capital to a fund and are not required
to invest in any deals. Individual members are free to either
invest or not invest in any opportunity.
How does the FAU-TRIN source and screen potential investment opportunities?
FAU-TRIN is actively seeking investment opportunities from
existing members, the operating team, and the global FAU
community, as well as direct applications via FAU-TRIN website.
The FAU-TRIN team screens investment opportunities based on the
preferences of angel members and readiness for investment before
presenting opportunities to members and guests.
Does FAU-TRIN have bias towards a particular industry?
FAU-TRIN have a bias for technology-based and tech-related
ventures (tech empowers rapid scaling), however, all
attractive industries/sectors/models will be considered.
What are the requirements to receive an investment from FAU-TRIN?
FAU-TRIN invests in FAU-affiliated companies. Companies
must meet the following criteria to be considered for investment:
- Have a founder, executive, or board member who is a FAU alumnus,
faculty, staff, student, or parent
- Raising seed or Series A equity capital of $500,000 to $5 million
or syndicating later-stage equity financings with an existing
institutional lead investor
- Located in the United States
Operating team actively seeks feedback on members’ areas of
interest and focuses its efforts on areas in which members have preferences.
What are the membership benefits?
- Privileged access to high quality, nationally-sourced deal flow.
- Angel stage/venture capital quality investment opportunities
- Collaborative investment process (e.g. due diligence) most often
leads to improved investment decisions for this asset class.
- No carried interest or “promote” fee is charged by the group.
- An excellent way to gain exposure to and participate in this
asset class. Alternatives have numerous downsides.
- Opportunities for post-investment support by the group leads
to improved outcomes and ideally successful exits.
Members have a “front row seat” to view the latest trends
in technology, business models, staffing techniques and sales
channels. They gain business insights applicable and relevant
to other asset classes. Unlike other asset classes (e.g. listed
equities), members may be able to meaningfully contribute to
appreciation of their investments (e.g. post-investment assistance
to companies). Collaborative investing and its social component,
if desired. Members support the “Owl Nation’s” brightest minds
and most talented entrepreneurs.
Can members bring a prospective member to a meeting?
Yes. This practice is highly encouraged. There is no better way
to learn about FAU-TRIN than attending a member meeting. As a
courtesy, please let Pinar Yildirim (trin@fau.edu) know that
you are bringing a guest even if it is a last minute decision.
Member referrals are the most effective way to grow the FAU-TRIN membership.
If a member cannot attend a FAU-TRIN meeting, how does he/she learn about an opportunity?
FAU-TRIN records the company presentations and distributes
the video link to the membership for review via email.
How many investment opportunities will FAU-TRIN members see per year?
FAU-TRIN’s goal is to curate 14-18 investment opportunities
annually. Members are under no pressure to invest.
Is it possible for companies to see the list of members in the FAU-TRIN network?
Privacy of members is important for FAU-TRIN. For this reason,
FAU-TRIN will not publish a membership list. As the due diligence
process gets started with FAU-TRIN network, interested participants
will be introduced to the entrepreneur.
How does the FAU-TRIN investment process work?
The FAU-TRIN investment process starts with a teleconference
to review an opportunity. The meetings usually last about
60 minutes. This call is scheduled for members to share their
opinions, concerns, and questions. If members have further questions,
FAU-TRIN staff ask company founder/CEO to answer these questions
and send them back to FAU-TRIN staff within one week.
Next step is for due diligence team to complete its review, and
then send out an investment memorandum to the entire FAU-TRIN
group with its summary and recommendation. The investment
memorandum discusses the strengths and weaknesses of the
investment opportunity as well as the terms of the deal.
Once the investment package has been distributed to the FAU-TRIN
membership, the Managing Director makes a call for capital
commitments to the membership with a deadline to respond. Members
typically have 10 business days to review the materials and
ask additional questions. The members are reminded that the
investment materials contain confidential information and are
not to be distributed or shared.
How are FAU-TRIN staff compensated?
They are salaried university employees. They are not paid
any extra compensation based on the size of the FAU-TRIN
membership; the number of members investing in a deal; or
the amount of capital invested in a particular transaction.
They also do not receive carried interest or any other fees
in a transaction. They are prohibited by university conflict
-of-interest rules from investing in any of the FAU-TRIN portfolio deals.
Will the company or FAU-TRIN keep members up to date on the company’s progress?
Most companies in the FAU-TRIN’s invested company list update
their investors on a quarterly schedule. In addition to these
company updates, FAU-TRIN will pass along other pertinent
information on a company's progress on an ad hoc basis and
provide a formal portfolio update once a year.
What if a member wants to make a suggestion about how FAU-TRIN can improve?
Pinar Yildirim acts as a member representative for FAU-TRIN.
She will be available for member questions and/or can anonymously
relay your suggestions to FAU-TRIN staff. If you have ideas
about how FAU-TRIN can improve, please contact Pinar. You may
reach out to her via email (trin@fau.edu).