BAN FAQs
General Questions About Angel Investing
What is an Angel Investor?
From the standpoint of the Billiken Angel Network, angel investors are wealthy individuals (specifically, accredited investors) who invest in a variety of ventures by reserving a portion of their total investment portfolios to provide emerging and established companies with capital and expertise through direct, private investments. Their goal is to achieve higher returns than the typical public markets provide. Most angels are active investors - who contribute their time and experience, as well as offer introductions to valuable contacts essential to the company’s success - because they enjoy the thrill of helping entrepreneurs grow their businesses. To maximize the value added, most angels specialize in industries or technologies they understand, and invest only in companies within close geographic proximity.
What is an Angel Group?
Angel investor groups vary in structure, from formal to informal. Formal groups, like the Billiken Angel Network, follow strict participation requirements that guide members’ involvement in the group and in SLU’s efforts to grow entrepreneurship in the region. Some groups (typically called “angel funds”) pool members’ capital to make investments on the group’s behalf, while others (called “angel networks” like the BAN) allow individual members to invest in specific deals of interest
A typical angel group’s investment ranges widely from $50,000 (for the BAN, $5,000) to $500,000 per deal, depending on how many group members are interested in the deal. While no two angel groups operate exactly alike, most angel groups maintain a local or regional geographic focus in order to maximize members’ ability to actively engage in the growth of their investments.
The BAN, like many other angel groups, has a web site that provide directions for business plan submission. After screening business plans for top-quality deals that match the group’s criteria, angel groups organize periodic breakfast or dinner meetings for members to hear pitches from companies selected to present. If the group (or members of the group) decides to proceed, interested members commonly collaborate on due diligence and deal negotiation. Based on the group’s structure, investments are either made directly by individual members, or by the group as a whole. Most groups apply standard terms to their investments, with some flexibility to negotiate.
Do I have to have been an entrepreneur to be an angel?
No. Many successful angels come from the corporate world, and have the expertise to help small businesses pitch to big business, or implement the kinds of procedures necessary to grow a small business to the next level, or prove themselves to potential big business partners.
Questions About the Billiken Angels Network
Do I have to be an alum of Saint Louis University to join the BAN?
No. We welcome angels from all backgrounds, religions, ages, genders, races, industries - and schools! BAN members do make a commitment to help SLU promote entrepreneurship on the campus and in the region, through sponsorship, mentoring, participation in classes and programs, and other forms of assistance. As a university-based angel network, educating the public about entrepreneurship and venture financing is part of our mission.
So will the public know I am a Billiken Angel?
Not unless you tell them, or agree to let us tell them.
Do I have to give the BAN my investment funds in advance?
No. As an angel network, you hold onto your investment capital until you invest in an opportunity you learned about at a Billiken Angel Network meeting or webcast. Each member individually chooses whether to invest in any opportunity presented to the Network members. The only money an angel pays into the network is their annual dues.
Is there an expected annual minimum investment?
We do not have a hard-and-fast rule on this, but we have an expectation that angels will invest at least $25,000 every two years.
What role does SLU’s co-investment play?
Saint Louis University will have the opportunity to co-invest with the other angels. Co-investment will depend on meeting certain specific conditions regarding size and angel involvement, which members of the BAN will learn more about at our meetings. SLU has allocated $1 million for co-investment with the BAN, and for qualifying opportunities, this co-investment will be on a dollar for dollar basis.
How do I learn more about angel investing?
The Billiken Angels Network will conduct periodic training programs for new members as an intensive introduction to angel investing. Periodically, The Billiken Angels Network has speakers on relevant topics as part of the quarterly meetings. Members also learn from other experienced angel investor group members.
How can I become a member of the Billiken Angels Network?
Membership is by invitation only, with the prospective member sponsored by a current member or based on the recommendation of a faculty or staff member working with the Entrepreneurship Program or Entrepreneurship Center at Saint Louis University, and confirmed by the BAN membership committee. To explore the possibilities, contact our Director, Professor Jerome Katz, at 314-977-3864 or by email at katzja@slu.edu.
What is an Angel Investor?
From the standpoint of the Billiken Angel Network, angel investors are wealthy individuals (specifically, accredited investors) who invest in a variety of ventures by reserving a portion of their total investment portfolios to provide emerging and established companies with capital and expertise through direct, private investments. Their goal is to achieve higher returns than the typical public markets provide. Most angels are active investors - who contribute their time and experience, as well as offer introductions to valuable contacts essential to the company’s success - because they enjoy the thrill of helping entrepreneurs grow their businesses. To maximize the value added, most angels specialize in industries or technologies they understand, and invest only in companies within close geographic proximity.
What is an Angel Group?
Angel investor groups vary in structure, from formal to informal. Formal groups, like the Billiken Angel Network, follow strict participation requirements that guide members’ involvement in the group and in SLU’s efforts to grow entrepreneurship in the region. Some groups (typically called “angel funds”) pool members’ capital to make investments on the group’s behalf, while others (called “angel networks” like the BAN) allow individual members to invest in specific deals of interest
A typical angel group’s investment ranges widely from $50,000 (for the BAN, $5,000) to $500,000 per deal, depending on how many group members are interested in the deal. While no two angel groups operate exactly alike, most angel groups maintain a local or regional geographic focus in order to maximize members’ ability to actively engage in the growth of their investments.
The BAN, like many other angel groups, has a web site that provide directions for business plan submission. After screening business plans for top-quality deals that match the group’s criteria, angel groups organize periodic breakfast or dinner meetings for members to hear pitches from companies selected to present. If the group (or members of the group) decides to proceed, interested members commonly collaborate on due diligence and deal negotiation. Based on the group’s structure, investments are either made directly by individual members, or by the group as a whole. Most groups apply standard terms to their investments, with some flexibility to negotiate.
Do I have to have been an entrepreneur to be an angel?
No. Many successful angels come from the corporate world, and have the expertise to help small businesses pitch to big business, or implement the kinds of procedures necessary to grow a small business to the next level, or prove themselves to potential big business partners.
Questions About the Billiken Angels Network
Do I have to be an alum of Saint Louis University to join the BAN?
No. We welcome angels from all backgrounds, religions, ages, genders, races, industries - and schools! BAN members do make a commitment to help SLU promote entrepreneurship on the campus and in the region, through sponsorship, mentoring, participation in classes and programs, and other forms of assistance. As a university-based angel network, educating the public about entrepreneurship and venture financing is part of our mission.
So will the public know I am a Billiken Angel?
Not unless you tell them, or agree to let us tell them.
Do I have to give the BAN my investment funds in advance?
No. As an angel network, you hold onto your investment capital until you invest in an opportunity you learned about at a Billiken Angel Network meeting or webcast. Each member individually chooses whether to invest in any opportunity presented to the Network members. The only money an angel pays into the network is their annual dues.
Is there an expected annual minimum investment?
We do not have a hard-and-fast rule on this, but we have an expectation that angels will invest at least $25,000 every two years.
What role does SLU’s co-investment play?
Saint Louis University will have the opportunity to co-invest with the other angels. Co-investment will depend on meeting certain specific conditions regarding size and angel involvement, which members of the BAN will learn more about at our meetings. SLU has allocated $1 million for co-investment with the BAN, and for qualifying opportunities, this co-investment will be on a dollar for dollar basis.
How do I learn more about angel investing?
The Billiken Angels Network will conduct periodic training programs for new members as an intensive introduction to angel investing. Periodically, The Billiken Angels Network has speakers on relevant topics as part of the quarterly meetings. Members also learn from other experienced angel investor group members.
How can I become a member of the Billiken Angels Network?
Membership is by invitation only, with the prospective member sponsored by a current member or based on the recommendation of a faculty or staff member working with the Entrepreneurship Program or Entrepreneurship Center at Saint Louis University, and confirmed by the BAN membership committee. To explore the possibilities, contact our Director, Professor Jerome Katz, at 314-977-3864 or by email at katzja@slu.edu.
