Investors
Angel Investors propel early-stage startups with much-needed seed capital to cover initial expenses such as product development, market research, and early operations. Their willingness to invest early and take on risk that institutional lenders often won’t help entrepreneurs who may not have a proven track record.
Beyond providing funding, many angel investors also offer mentorship, guidance, and connections to help startups navigate challenges, make strategic decisions, and avoid common pitfalls. This hands-on involvement can be rewarding for the Investor and can significantly increase the chances of success for the startup.
To support the development of more engaged capital networks in the Greater Sacramento Region, the California Office of the Small Business Advocate (CalOSBA) has funded the launch of NorCal AngelCon, an investment education program designed to engage new angel investors in learning how to source, screen, diligence, and invest in pre-seed / seed stage venture backable startups.
This program culminates in a startup showcase at which the cohort of Angels will announce their investment into one of the regional startups they diligenced during the program.
Contribute to our local economy by becoming an active investor and learn to spot groundbreaking new business ventures and innovative technology. This is where your dollars will grow and make an impact in the Greater Sacramento region.
NorCal AngelCon Program
The AngelCon program and culminating event will equip you with the knowledge and tools necessary for making educated angel investment decisions. With a solid foundation in the principles of angel investing, you’ll be able to better navigate market dynamics and identify promising investment opportunities. The curriculum is designed to give you a deep understanding of the intricacies of angel investing, encompassing various essential aspects such as legal and regulatory changes and considerations, evaluating companies, investing diversification, and portfolio management. As a member of the program, you will become a member of the Angel Capital Association - a professional society of accredited angel investors who make up the world's most prolific early-stage investment class.
TOTAL COST for participants: $5,750
$5,000 reserved for investment. (One unit - see FAQ below for more info)
$750 to cover fund administration
Accelerate CA grant is funding program and event costs.
Commitments to the program must be made by March 21st.
Angel Investing
Intersection of Financial Return, Supporting your Community, and Growing Professionally
Investor Timeline
Investor Training: Session Run on Thursdays 11 am to 1 pm
Late July - Welcome Happy Hour + Orientation/Overview (5:30 to 7:30 pm)
September 3rd - Financial Planning + Asset Class + Investment Thesis
September 10th - Investment Thesis
September 17th - Deal Sourcing and ScreeningCap Tables + Term Sheets
September 24th - Pitch Review
September 31st - Due Diligence Training
October 8th - Cap Table + Term Sheets
Application + Due Diligence + Investment:
August 7th - Application Review (Voting for Semifinalists)
Oct. 15th - Semifinalist Pitches (Voting for Finalists)
Oct. 15th - Nov. 19th - Due Diligence
Nov. 11th - Diligence Reports on Finalists
Nov. 19th - AngelCon Pitch Event: Investment Selection
Explore Angel Investing
Start Investing with a New Group of Friends
It’s easier to become an angel investor than you may think. Join our community of both first-time and experienced angel investors to make new connections, learn the process, and gain access to companies in the region.
Frequently Asked Questions
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Besides providing capital, angel investors can assist a start-up in one of several other ways. An investor may have expertise/knowledge in a particular area that is meaningful to a company’s success. An investor might tap into their existing network of contacts to help a company by introducing them to people with expertise they need. An investor may be called upon by a contact in their network to help another company that they want to succeed. Over time you will become part of a community that helps one another.oes here
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Besides providing capital, angel investors can assist a start-up in one of several other ways. An investor may have expertise/knowledge in a particular area that is meaningful to a company’s success. An investor might tap into their existing network of contacts to help a company by introducing them to people with expertise they need. An investor may be called upon by a contact in their network to help another company that they want to succeed. Over time you will become part of a community that helps one another.
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You must qualify as an Accredited Investor to invest in companies beyond just friends’ and family companies. Accredited Investors must meet one of the criteria:
To qualify as an accredited investor based on your net worth, you must have a net worth of $1 million or more (excluding your primary residence); or
To qualify as an accredited investor based on your annual income, you must have had an annual income of $200,000 or greater (or $300,000 or greater combined income with your spouse) for the prior two years and have a reasonable expectation of the same or greater income in the current year.
To qualify as an accredited investor based on your work experience, you can be considered a “knowledgeable employee” who has a good understanding of the risks involved in angel investing.
The SEC states that the definition of accredited investor is “intended to encompass those persons whose financial sophistication and ability to sustain the risk of loss of investment or ability to fend for themselves render the protections of the Securities Act’s registration process unnecessary”.
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An angel network is an investment group made up of angel investors who pool their expertise to help select a group of early stage companies that are most likely to result in a successful return on investment. This expertise may include providing feedback to companies that are presenting, participating in due diligence (researching the company team, market, financials, etc), and voting on the companies with the greatest likelihood of success. Investors invest independently from one another.
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In order to operate the Fund must have a minimum of 10 units purchased (see ‘What is a unit?’). An individual investor can have more than one unit.
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There is one basic fee.
Fund administration of $750, which is part of the $5,750 per unit paid. This fee is earmarked to cover the cost of fund administration over the life of the Fund. Once all the units have been paid for, the Fund Manager establishes a budget for the maintenance for the lifetime of the Fund.
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A unit is an investment of $5,000, plus a Service Fee of $750 ($5,750/unit total cost). Investors can only invest by purchasing whole units (ie. One unit $5,750, two units $10,750, etc). The investment portion of the unit is what makes up the fund (see ‘What is a fund?’).