This course will introduce you to the angel/venture capital (VC) model of private equity investing, including the foundational terminology and concepts you need to know as an investor in early-stage businesses. It will also explore some of the other financial structures you can use to invest in companies that are not traded on the public markets. Investment opportunities for both accredited and non-accredited* investors will be discussed. By highlighting the racial and gender biases that currently exist in venture capital, the course also shows why it is so important for women and minorities to consider participating in this asset class. And it encourages you to explore how you could use this asset class to deepen the values-alignment of your portfolio.
*If you do not meet the criteria of an accredited investor, then you are considered non-accredited.
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The Angel Investing course is a 3-part series that will be supported by monthly Circle discussions. Members can ask questions on Mighty Networks, and they will be responded to by the Course Creators or other experts.
Completion of Invest for Better’s Core Curriculum or prior experience in values-aligned investing is recommended
Monthly Commitment: 3 – 3.5 hours
Approximately 1 – 2 hours of homework is required prior to each of the 3 meetings, which are expected to last about 1.5 hours. Homework consists of a combination of reading and videos, the latter being particularly important. Although we are making the PowerPoint deck that Nancy uses in her videos available, we strongly suggest that you watch the videos and use the decks as reference material because Nancy provides much more information and clarity with her words than you will be able to garner from the slides alone. For those who want to go deeper more quickly, a few books are recommended as ancillary materials.
The first session of this course provides a high-level overview of the most common model of angel/venture capital (VC) investing. It explains how the model works, how you make money, and what angels and VCs look for when they consider an investment opportunity. You will discover what it takes to be a successful angel in terms of the growth trajectories of the businesses you support, the number of investments you should make, and the process you need to pursue. The session will also explain why it is important for women to consider putting some of their money to work in private investments, assuming they understand both the risks and rewards of this asset class.
There is a lot of information in this session about the mechanics of angel/VC investing and the financial considerations that go into making an investment decision. In her video, Nancy explains critically important concepts like term sheets, valuations, and cap tables. These are structures that can take time and experience to fully understand, so don’t worry if you feel a bit overwhelmed by the material in the video. Our goal is to simply introduce these structures and terms, so they are not completely foreign to you.
This last session of this course provides you with details of the different routes you can take as an angel investor. The session explores crowdfunding, angel groups, syndicates, and fund structures. It also introduces you to some alternative financing structures that help start-up enterprises build their businesses without having to grow at a rapid scale or seek a quick exit. These structures include revenue-based lending and more patient forms of debt and equity.
Principal, NKH Group
Nancy Hayes has decades of business experience that span from corporate to start-ups. She started her career at IBM in the 1970s and was there almost 20 years, rising to become General Manager, Operations, Worldwide Sales & Services. From there, Nancy jumped into the start-up world, becoming CEO of a few non-profit ventures, one of which developed products and services to help seriously ill children cope, and another that enriched the lives of seniors, especially low-income elderly. More than a decade ago, Nancy got involved in angel investing, first, by co-founding a rewards-based crowdfunding platform and later by becoming the Managing Director of Golden Seeds, a women-led angel investing group. Today Nancy leads NKH Group, through which she provides entrepreneurship and leadership training and support. Nancy is an active angel investor, having invested in more than 30 companies that are led by women or founders of color.