Friday, May 18, 2007

Who Should Join Robin Hood?

We'll be the first people to admit that joining Robin Hood is not for everybody.

If you have allocated some portion of your investment portfolio to early stage, or start-up companies, but you have no time or real interest in looking at the companies, then one of the many local angel funds would be perfect for you.

At the other end of the spectrum, if you have tremendous resources of both time and money to commit to angel investing, and you have access to quality deal flow, then you may not see great value in joining Robin Hood.

The best fit is for individuals who have the money and the appetite for angel investments, and who have the interest in participating in due diligence, perhaps deal structuring, maybe serving on a board – in short, being an active investor, but with the support of an organization.

As a side note, the Executive Director of our group always says that she can tell when someone will really get the most value out of Robin Hood... they've recently sold their business, have had a few weeks at home without making "the life of the company depends on this" decisions, and their spouses want them out of the house...

Angel Group Organization Structures

People often ask us about the different types of angel groups, and how to know which is the right type of angel group for them. Here's some thoughts on the angel group landscape.

Individual Angels
Individual angels invest on their own, and run the gamut from putting in $10K to your entire funding amount. They can be found in the Philadelphia area through your accountant or attorney, and many of them attend local angel groups through PIF.

Angel Networks
These angels look at deals as a group, but invest as individuals.

Angel Funds
Angel members buy units in a fund, and vote their units on investments. In a fund,
angel investors participate in the selection, due diligence and voting process. Generally a majority of members direct where funds are placed.

Angel Hybrid
Angels join a group, invest together in each deal as a partnership, but each individual member determines how much they choose to invest in each deal. They can opt in or out of any deal. Robin Hood Ventures is an angel hybrid.