Frequently asked questions from entrepreneurs
Q. What do you look for in companies?
Barriers to entry, industries, management team, growth potential
A. We focus on investing in high-potential early-stage software, information technology and life science-based ventures, but do not exclude low or no technology companies, if there are barriers to entry (patents, trademarks, copyrights, trade secrets). New Mexico Angels’ members typically invest up to $250K.
We will syndicate our larger deals with other angel groups, venture capital firms or corporate strategic partners. Firms should have an innovative business model and a strong core management team, along with patented or proprietary technologies or processes. They should also fit with our members’ professional skills and interests. We seek firms with a strong core management team, blue-chip advisors, initial customers or a combination of these traits. While there are many avenues for seed-stage and business plan development, New Mexico Angels works with companies to refine strategies, recruit and mentor staff, accelerate growth, and raise the next round of capital.
Q. What is your selection process?
A. Presenting to the New Mexico Angels begins by submitting an application through our online platform, GUST. (See Presenter process material in this section). We review applications on a rolling basis to select companies that would have the best fit with New Mexico Angels overall interests, capabilities and goals. We receive over 300 applications annually, we select about a dozen per quarter to be reviewed by our Screening Committees. Our Screening Committee will then meets with these firms for a dry-run 15-minute presentation and 15-minute question and answer session. Those companies that would likely receive the most favorable response from the overall membership are invited to present at our dinner meetings.
Q. What happens after the presentation?
Due diligence, term sheets, company involvement
A. If there is sufficient interest by our members in making an investment, two or more of our NMA members will lead the due diligence process, which typically takes four to six weeks. Although each of our angel members invest individually, all NMA members who invest in a deal follow the same term sheet. After closing the deal, a NMA member will likely join the board of directors or seek board observer rights and will facilitate interaction between the group and the company.
Q. Are there any fees or commissions involved?
A. There is no fee to submit your company for consideration. There are no commissions, but the angel investing group does get reimbursed for legal and administrative fees, if and when a deal is done. Also, if a company is selected to present to the entire NMA organization over dinner, they can have as many people as they would like to attend, but they will have to pay for the dinners of all their attendees except the presenter.