Q: What is the average stage of the companies that present to the Band?

The Band likes high technology companies with strong teams, promising technology, big potential markets, solid barriers to entry, and IPO prospects. Since we like to be the first money into the deal we recognize that for seed stage companies being certain that a company is all of these things is impossible—that is what makes investing at this stage risky. However, the more a company is like this, the more likely it will succeed in raising money from the Band. Because we do invest very early, preferably the first money into the deal, valuation expectations are very low. Generally we expect to own a third of the company for a $1M investment.

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Q: What categories of companies do you invest in?

The Band membership has expertise in every high technology area and consequently, we invest in every area from semiconductor to biotech, from software to telecom. As you can see from our portfolio pie chart, the Band has invested in substantial measure in every high tech area and had successful exits in all areas.

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Q: What kinds of companies are not successful at the Band?

The Band invests in deals local to the Silicon Valley. There are exceptions to this rule with investments in the LA and San Diego areas, as well as a scattering around the country. However, 95% of the Band's portfolio are local and generally non-local deals will not be reviewed by the Deal Screening Committee

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Q: How are deals selected for presentation to the Band?

The Band receives over 50 deals per month and enlists 25 members on pre-screen industry committees to select the top 12 deals. The Band staff selects the top six from among these twelve which are then interviewed by a standing committee of the Band, the Deal Screening Advisory Committee. This committee reviews the printed material of each company in advance of a 15 minute interview. The committee then recommends the top three companies for presentation to the entire group.

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Q: What are your criteria for making an investment?

While each deal is different, there are some basic requirements for submission to the Band.  The Band of Angels invests across all high technology categories.  Specifically we consider early stage startups (Seed or A) within the Life Science/Biotech, Software, Communications, Internet, Energy and Semiconductor industries.  Our geographic preference is to invest in companies located within Silicon Valley as one of our members typically serves on the company’s board.

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Q: What does the Band look for in their initial review?

As with most venture funds, the Band seeks to invest in companies with a strong management team, unique technology and a large potential market.

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Q: What should my executive summary or business plan contain?

Your plan needs to offer us enough information to determine the strength of your team, market and technology.  Beyond that we need to understand your business model and financial projections as well as your capital requirements and the milestones you will reach with this investment.  Your executive summary should also include specific information on your customers and competition. However, it must do all this in an incredibly concise way. If selected to attend the Deal Screening committee your company will be required to write an executive summary that includes all this information in one page. Why not do that now? Companies that can accurately convey themselves within a one page narrative are much more likely to score well in the pre-screening process?

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Q: Do you sign NDAs?

Since we receive so many plans our policy is not to sign NDAs (non-disclosure agreements) or confidentiality agreements.  The Band prides itself on our practice of the highest respect and care of the confidentiality of all information received; aiming to treat you as we ourselves wish to be treated. However, you should not, under any circumstance, forward confidential or proprietary information to us.

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Q: Are there any fees to submit to Band of Angels?

There are no fees to submit or present to the Band of Angels. In fact, companies selected for presentation to the Band receive several valuable things for free: several hours of speech coaching and document preparation, feedback from venture experts, and dinner at the Los Altos Country Club.

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