Investing, nurturing and growing

Our investors hail from a diverse range of backgrounds and can’t be defined by age, gender or work experience.
 

But they do share a generosity of spirit and a common motivation to nurture and grow our start-ups. Willingly sharing advice, knowledge and experience they help create thriving businesses.

Advising, connecting and mentoring

Financial commitment is just one piece of the pie. Angel investors are often actively involved in helping the business succeed, either in a board or mentor role. They bring welcome experience and connections, along with sound advice on developing management teams.

 

As the start-up develops they may help guide successful capital raising, strategic partnerships and ultimately exit strategies.

Giving back and learning

Whether they are successful entrepreneurs, active professionals or high net worth individuals, ArcAngel investors share a genuine interest in developing women-led businesses and female leaders. 

 

All are committed to giving back to the business community. But they also relish the exposure to young businesses in emerging industries, adding to their own learning.

How does investment work? 

Our process ensures a diverse range of high quality companies for investment, with a focus on for-profit organisations.

The ArcAngels investment process typically involves:
 

  • Screening meeting with the female founder/s 

  • In-person presentation and opportunity for questions at ArcAngels member meeting

  • Deep dive meeting with the entrepreneur for interested investors

  • Formation of a deal team for due diligence

  • Making the investment

  • Monitoring the investment

  • Exit/IPO/wind up

Janine Smith

Active ArcAngels Investor

GLOSSARY

Burn rate - the rate at which a new company spends its initial capital.

Churn rate - the annual percentage rate at which customers stop subscribing to a service.

Dilution - reduction in the ownership percentage of a share of stock caused by the issuance of new shares.

Ordinary Shares - shares which have a lower priority for company assets and only receive dividends at the discretion of the corporation’s management.

Monthly Recurring Revenue (MRR) - the income that a company can reliably anticipate every 30 days.

 

Minimum Viable Product (MVP) - a product with just enough features to gather validated learning about the product from customers.

Preferred Shares - shares which have the advantage of a higher priority claim to the assets of a corporation in case of insolvency and entitles the holder to a fixed dividend.

Pre-money Valuation - The company’s value immediately before funding. If post-money valuation = $2.5M and the company raised $500K, then the pre-money valuation = $2M.

Post-money Valuation - The company’s value immediately after funding. If pre-money valuation = $2M and the company raises $500K, then the post-money valuation = $2.5M.

Term Sheet - a document outlining the material terms and conditions of a deal. Once the parties agree, more detailed legal documents are drafted consistent with the terms laid out in the terms sheet.

VestingA process in which an employee or founder earns stock over time. In essence, vesting protects founders from each other and aligns incentives so everybody focuses towards building a successful company. A typical vesting period might be 3 - 4 years, which would mean they would earn 25% of their stock each year over a 4 year period. If they leave early, the unvested portion returns back to the company.

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