Frequently asked questions for entrepreneurs regarding NMA.
Q. What do you look for in companies?
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. New Mexico Angels’ members typically invests $250K to $800K, and will participate with venture capital firms or corporate strategic partners at a pre-money valuation of less than $5MM. 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. Meeting New Mexico Angels begins by emailing us a copy of your business plan’s executive summary. (See Presenter process material in this section) At least once a month, we review these materials to select the firms that most likely would have the best fit with New Mexico Angels overall interests, capabilities and goals. A small group of our members (one of our Screening Committees) 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 meeting.
Q. What happens after the presentation?
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 member of NMPI would 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 are no charges to submit materials to New Mexico Angels or to present to the group. 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.