F. A. Q.

1. What is Sydney Angels?

Sydney Angels is the leading early stage angel investment membership group in Sydney. It is run as a not-for-profit membership organisation for its angel investor members.  Sydney Angels’ members seek to invest in innovative early-stage ventures (usually based in Sydney). Sydney Angels as an organisation makes it easier for its members to connect with good deals and entrepreneur teams in a professional and collaborative environment using disciplined investment processes.

2. How is Sydney Angels different to other angel investment groups, networks, pitching forums etc. that already exist?

Sydney Angels happily co-exists in Sydney’s early-stage ecosystem with other angel groups, adviser-led investment networks and pitching forums; but it is clearly differentiated from them in several ways:

• Sydney Angels does not charge success fees on any capital raised or fees for promoting opportunities other than a nominal $100 application fee.
• Sydney Angels provides valuable advice from experienced investors and entrepreneurs, before, during, and after deal screening, regardless of whether the applicant is successful in raising capital.
• Sydney Angels provides a video recording of investment pitches by entrepreneurs invited to present at a  deal screening meeting, to assist them with their next presentation.
• Sydney Angels has established the Sydney Angels Side Car Fund to increase the amount of funding available to entrepreneurs in both opening and follow on investment rounds and make it easier and quicker to close these rounds
• Through public association with key players in Sydney CBD innovation precincts, Sydney Angels utilises complementary expertise, networks and infrastructure for the benefit of its members and the deals they have invested in.

2. What sort of deals is Sydney Angels interested in?

Sydney Angels’ members are interested in innovative start-up and early-stage expansion businesses seeking between $150,000 and $1,000,000 of equity investment. For practical reasons, usually only Sydney-based deals are considered. A typical deal would be seeking $100,000 to $500,000 at a realistic pre-money valuation between 500k and $3M. Usually these investments are the first formal investment in the venture, that is by investors other than friends and family. Sydney Angels’ members would normally expect to participate in later follow-on investment rounds too.

Whilst 50% of Sydney Angels’ deals have been web based, opportunities in all industries are considered, except for highly leveraged or debt financed businesses, such as property and financial services.

3. What if the entrepreneurs business is not Sydney based?

We encourage entrepreneurs not based in Sydney to contact their local angel group. A list of established angel groups can be found at www.aaai.net.au .  Sydney Angels and these other angel groups have established systems and processes for referring and sharing deals. Sydney Angels’ members will consider co-investing if there are local angel group members interested in the deal and willing to lead it.

4. How Many Deals have applied?

Refer to our Track Record found under the “About Us” navigation tab.

5. How does an entrepreneur apply to Sydney Angels?

An entrepreneur can apply through this website by clicking on apply for funding.

6. What does it cost to apply to Sydney Angels?

It costs $100 (non refundable) to apply to Sydney Angels. No other fees are charged by Sydney Angels. You will also need to invest time in completing a good application. In addition to being the means for presenting your venture to Sydney Angels and making a good first impression, the time invested in completing the application form often helps applicants get clearer on their business and assists with delivering a strong pitch.

7. Does Sydney Angels Sign Non-Disclosure or Confidentiality Agreements?

No. As a membership organisation, it is not practical for Sydney Angels to sign non-disclosure or confidentiality agreements (NDA or CA). No assurance of confidentiality can be given. The information you supply in your application will potentially be seen by all members of Sydney Angels, who may in turn share the information with their associates. You are solely responsible for determining the appropriate level of information to disclose. After application and giving presentations to Sydney Angels members, it may be reasonable for you to ask interested investors acting in their personal capacities to sign NDAs or CAs should they wish to continue discussions into detailed due diligence and negotiation.

8. What happens after entrepreneurs apply and what value is received?

Upon completion of an application to Sydney Angels, your business opportunity will be added to the Sydney Angels deal management system (Angelsoft), making it available for review by all existing Sydney Angels’ members. Any of these members are free to contact you to discuss potential investment, regardless of whether the Committee of Sydney Angels invites you to present at a deal screening meeting or members meeting.

On a continuous basis the Sydney Angels Committee considers all new applications made and invites the most interesting ones (usually 6) to present at the next deal screening meeting, which happen every second month.

If you are not invited to the screening meeting, a member of the Sydney Angels Committee will contact you and provide some feedback as to why your application was not selected for the next stage. Sydney Angels always tries to make the feedback specific and useful so youi can address weaknesses in your venture, or pursue other more suitable funding options.

If you are invited to a deal screening meeting, you will be asked to present to a panel made up of 15-20  Sydney Angels’ members. You will be required to give a 10 minute pitch and then answer 10 minutes of Q&A. To help you present your business opportunity as clearly as possible, a presentation guide will be provided, as well as some coaching.

At the deal screening meeting, each invited entrepreneur will have their turn at presenting and Q&A.  Entrepreneurs are able stay and watch the other presentations and Q&A sessions if they wish. When the pitches are all finished, the entrepreneurs will all leave and the panel will vote to select the best deals (usually 3) to invite to the next Members Meeting, which normally occurs about a month after the screening meeting. You will be contacted within 24 hours as to whether you are invited to the Members Meeting or not. If not invited, you will be given feedback as to why the panel did not choose your venture. However it is quite possible, and deals have been done this way, that individual members who have seen your deal, either on AngelSoft or at the screening meeting, will be interested in having further discussions with you about potentially investing.

All entrepreneurs who present at a screening meeting will also receive a video of their pitch and Q&A performance, which should help them improve their next pitch and gain insights to their business.

If you are invited to present at the next Members Meeting, you will have the opportunity to pitch to 40+ Sydney Angels members and invited guests, most of whom will be active angel investors. A member of Sydney Angels Committee will give you some further coaching to help you prepare for the meeting and address any weaknesses or issues identified during the screening meeting process.

At the Members Meeting you will be required to give a 10 minute presentation and participate in 10 minutes of Q&A, similar to the Screening Meeting. After you have finished, you will be asked to wait outside in the lounge until the meeting is finished. At which point, you will be invited back into the room for canapés and drinks to network with the members and guests at the meeting. During this time you may be approached by members interested in learning more about your business, with a view to potentially investing in it.

9. How often are Members Meetings and Screening Meetings held?

Members Meetings are held every second month and Screening Meetings in the months between.

10. Can entrepreneurs still attract investment even if they are not invited to present at either the screening meeting or members meeting?

Yes. Any member of Sydney Angels is free to contact any entrepreneur who has completed an online application to Sydney Angels. Your application information will remain visible to all members of Sydney Angels, regardless of your progress through the Sydney Angels’ screening process. While not common, it has happened that deals get funded that were not selected to present at a Members Meeting

11. Who are the people behind Sydney Angels? Why are they doing this? What’s in it for them?

Sydney Angels was formed by a group of Sydney-based volunteers associated with AAAI who believe in the importance of angel investment and the superiority of organised angel investment groups. They have donated their time and expertise to launch the group and are working hard to build solid foundations that will allow new leaders from within the membership to  take over and continue to grow Sydney Angels. Their personal motivations for doing this vary. Some are angel investors and want to collaborate and invest with other like-minded angel investors. Others have innovative early-stage clients looking for investors and naturally want to encourage the formation of angel investment groups like Sydney Angels. Others are helping because it is stimulating and a good thing to do for society.
The current team of volunteers comprises: Vivian Stewart, Richard Dale, Mathias Kopp, Hamish Hawthorn, Andrew Stead, Adrian Bunter, Steven Maarbani, Tim Staley, and Peter McWilliam.

12. What is the relationship of Sydney Angels to the Australian Association of Angel Investors (AAAI)?

Sydney Angels is an angel group member of AAAI. Although an independently led angel group, Sydney Angels subscribes to the angel investment philosophy and best practices promoted by AAAI. We recommend reading the information on the AAAI website www.aaai.net.au and subscribing to its newsletter.