NWA is organized as a Florida not-for-profit corporation, although the investments we organize are very much profit-oriented.
We do not have a fund but our membership is committed to a minimum investment once the Board of Directors determines to fund a company.
We invest as a group based on a decision by the Board of Directors to fund a company. Typically all members invest the minimum per-deal amount to which they committed, though members may chose to invest more in specific deals.
Prospective members must be nominated by a current member and approved by the Board. In addition to financial qualifications as accredited investors, we seek individuals who have reputations for integrity and the ability to contribute to making our investments successful. We view the funding point as the beginning of our relationship.
Typically, NWA members invest about $600,000 although it is possible to increase the investment size if individual members determine that a larger investment is warranted or we take on partners. In the last two years, our investments have ranged between $250K and $1MM.
We typically invest in preferred equity. Terms and Conditions are consistent with those available in the market at the time and deals are structured to anticipate future, “follow on” funding requirements.
We both co-invest alongside a lead investor and lead where we have relevant
member experience and/or strong co-investment partners.
Beyond funding, NWA members add value through hands-on company involvement. As a result, we typically invest where the company is close enough to have the access they require. We strongly prefer to invest in Florida.
We typically invest in early-stage companies. This usually means the company has not raised capital from an institutional investor. Furthermore, the company is often raising money to minimize product and market development risks in advance of raising a more significant round of venture capital. Preferably the candidate company is already producing revenue or is forecasting revenues within two quarters. Ideally, the company should be able to provide customer references that can be contacted by New World Angels.
Our criteria are not cast in stone, but the likelihood of a company receiving funding is greatly enhanced if it meets the following criteria:
1. Management. Experienced management must have a sound track record, or the clear understanding that the founding team accepts a transitory role. Management must demonstrate the ability to lead the organization, execute the business plan rapidly, manage cash effectively, attract additional financial and human capital, and adjust course when necessary. Founders of an early stage enterprise must be willing to accept hands-on involvement and support from the investors and the recruitment of more seasoned professional management if and when appropriate.
2. Business Plan. The business plan must effectively address all key aspects of the business, including management, technology, customer acquisition, and competitive challenges. Financial forecasts must be realistic with appropriate support for all key assumptions.
3. Compatible Co-Investors. Management, current shareholders, and potential co-investors must have experience in businesses of this type and stage. There must be compatibility among these parties and the shared commitment to work together to make the company a success.
4. Compelling Product, Technology, Service or Market Position. There must be a fundamentally exciting or disruptive technology, a unique service or approach to an attractive market, or other distinguishing characteristics.
5. Sustainable Differentiation. There must be a credible source of competitive advantage in the form of strong and defendable patents, proprietary processes, first-mover position, key customers under contract, or world-class technical talent.
6. Market Size and Growth Trajectory. The available market must be large and/or growing rapidly, typically in excess of several hundred million dollars or credibly expected to reach that size during the investment term.
7. Investment Structure and Terms. The investment structure and terms must afford us sufficient protection, influence and potential upside to justify our commitment of capital and time, and facilitate future capital-raising.
8. Exit Strategy. Management, current shareholders, and board must have realistic valuation expectations and compatible views on potential exit strategy.
An Executive Summary can be submitted directly to a member with whom the company has an existing relationship, or use our online submission form. Selected companies will be invited to present at our monthly member meetings. Presentations last 10 minutes and are followed by an equivalent time period of Q&A. Following this, the members vote to decide if they are willing to proceed to the next step, which typically will involve a more intensive follow-on meeting. Please see here for more information on our process.
If sufficient support is found within our group, we will designate a team to negotiate terms, conduct due diligence, and manage the process through closing. It is the due diligence team’s responsibility to make a presentation to the Board of Directors suggesting the pricing and amount of funding to be offered, the monetary commitment of the due diligence team, and to carry out the Board’s decision.
Typically at least one NWA member serves on the board of directors. A group member may also take a more active role in working with management.
Submit an Executive Summary of your business plan for consideration. Please include
all required fields.
The executive summary must include answers to all the required questions in the online submission form
You will first receive an automatic email confirmation of your submission immediately after completing the form. Then you will be notified again through email or telephone whether or not you have passed the next hurdle. Please allow us time to respond as we have many, able applicants to process.