Entrepreneur FAQs

Q. I'm concerned about confidentiality. How can I be assured that someone won't copy or steal the idea?
A. First, your company should have clear barriers to competition. Second, ideas are a dime a dozen. The implementation of the idea is usually hard. Thirdly, please do not disclose confidential information. We do not sign confidentiality agreements until the due diligence stage (and then they are signed by the individual members at their personal discretion). Just tell us WHAT your intellectual property will do and how it will benefit. Don't tell us the HOW it actually works.

Q. I've heard that financials have to show huge "hockey stick" growth in years 3,4,5 etc. I've also heard that investors need to see how the business can become $500 million or they are not interested. Is this true?
A.  What's absolutely true is that investors are looking for financial growth and "scale". "Scale" means that as revenues grow, so do profits. Investors have different financial requirements, so you shouldn’t characterize all are the same. Your financials should be realistic, with the confidence of the revenues and profits that you can deliver.

Q. Will angel investors want to control the board of directors?
A. No. Most Angel Groups request one Board Seat. and only if they can be a useful board member. More likely, the angel that leads your due diligence will be appointed by agreement between you and the other angel investors to represent them and distribute regular timely information.

Q. I have a private placement memorandum (PPM). Can I simply send that in for members to invest in?
A. A PPM is helpful and (eventually) necessary, but not a requirement to apply. Investors will want to look at your business plan in great detail and get to know you and your business. Your current PPM may or may not be satisfactory.

Q. How long does it take between presenting to a group of Angels and receiving checks?
A. Varies greatly. Refer to the FSI Process to understand how we work. The key to this answer is "Do you have your lead investor?"  A Due diligence process typically takes 6 weeks. Clean corporate records help speed the process.

Q. I have a private placement memorandum (PPM). Can I simply send that in for members to invest in?
A. No. We rarely look at PPMs. We are business savvy people and want to look at your plan in detail and get to know you and your business.

Q. Can I dictate the term sheet?
A. You can try.

Q. How should I value my company? Should I use the Discounted Cash Flow method in valuing my company pre-money valuation?
A. Valuing early stage technology companies is very subjective and not easy. Using DCF method is usually not appropriate for early stage companies.

Q. Will FSI Angel members help me with any thing other than cash?
A. Yes. There is a wealth of experience in multiple industries, as well as business contacts.

Q. Who makes the decision to invest?
A. Each FSI Angel member decides individually whether to invest or not. FSI's Angel Network is not a fund and does not syndicate or broker deals.

Q. Does the FSI Angel Network want exclusivity on my deal?
A. Absolutely not. We encourage you to present to other angels, venture capital funds and other forums. With the right support and mentoring, it will be easier for you to generate interest.

Q. Where can I find other forums of angel investors?
A. Check out the "Angel Groups" page on the "Resources for Entrepreneurs" page.

Q. Am I likely to find anyone who understands my sector in the group?
A. Yes, that is highly likely. Our members are very diversified, and we have approximately 150 active Angels spread among 10+ industry interest areas.

Q. Who attends the Breakfast Showcases?
A. A combination of Angel investors, Business Executives, Services providers, and other Community Leaders.