What is the name of the organization?
We’ve chosen Gwinnett Angels to reflect our mission of investing in early-stage companies and to emphasize our general geographic focus.
What is the purpose of the organization?
Essentially, there are two purposes. First, to provide accredited investors the opportunity to consider investing in start-up companies across a variety of industries; and second, to provide support and assistance to entrepreneurs in the greater-Gwinnett and metro Atlanta areas who need both capital and advice to assist in the successful start-up of their business ventures.
What is an “accredited investor”?
Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as “accredited investors.”
The federal securities laws define the term accredited investor in Rule 501 of Regulation D as:
- a bank, insurance company, registered investment company, business development company, or small business investment company;
- an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
- a charitable organization, corporation, or partnership with assets exceeding $5 million;
- a director, executive officer, or general partner of the company selling the securities;
- a business in which all the equity owners are accredited investors;
- a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
- a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
- a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
How do I join?
An application is available on the Gwinnett Angels website or you can go directly to the website of Atlanta Technology Angels and indicate your interest in the Gwinnett Angels.
What are the annual dues?
Annual dues are $2,000.00, and are prorated based on the time of year you join the organization. The Chapter is holding an enrollment period now through the end of the year, during which time, the $2000 dues covers the remainder of 2014 and all of 2015.
If you are an active investor in the course of any given year, by making investments of $25,000 in companies who present to the Gwinnett Angels or the Atlanta Technology Angels (“ATA”), your next year’s annual fees are reduced to $1,000.00.
Are there minimum investment levels?
There is no annual investment requirement to participate as a member of the Gwinnett Angels. If a member determines to invest in any of the proposed companies, generally there is a minimum investment of $5,000.00.
How are companies identified?
Prospective companies who are seeking angel investors will generally seek out either Atlanta Technology Angels or the Gwinnett Angels directly. There are screening processes at ATA and the Gwinnett Angels to review companies who are seeking investment to determine if they meet the appropriate standards to be presented to the regular meetings of the Gwinnett Angels for consideration by the members.
How are investment decisions made?
Initial presentation at membership meetings is simply a means of determining if there is general interest by certain members to proceed with investment. No actual investment occurs without a significant due diligence process led by the interested members and supported by hand-picked analysts.
Is the Gwinnett Angels chapter a stand-alone entity?
No. It is a satellite operating organization of Atlanta Technology Angels. All members of the Gwinnett Angels are full-fledged members of the ATA with all affiliated rights and benefits.
Why is the Gwinnett Angels a satellite of ATA?
The Gwinnett Angels want to take full advantage of the existing resources of ATA, including its process for identifying and screening potential investments, its resources for member education, and its system for assisting in due diligence and investment. Gwinnett Angel members have the full benefits of ATA membership including ability to attend and participate in all ATA activities, plus those of the Gwinnett Angels.
Will Gwinnett Angels look only at technology companies for investment?
No. Non-technology companies will be considered for presentation (and investment), as long as they meet the standards of the organization’s goals.
How will the Gwinnett Angels be managed?
Any member of the Gwinnett Angels is welcome to participate on a management committee that will meet regularly to screen prospective investments and to organize bi-monthly meetings. Because of the significant support of Partnership Gwinnett (“PG”), a PG representative will be a member of the management committee. In addition, a non-Gwinnett member of ATA will serve as a member of the Gwinnett Angels management group. In turn, the Gwinnett Angels will be asked to select from among its members someone to serve on the board of ATA.
How often will the Gwinnett Angels meet?
The first Thursday of every other month (adjusted for holidays) from 6:00-8:00 pm.