The Sacramento Angels are a group of experienced investors from the Sacramento Region who invest in emerging companies.
Our members have a passion for supporting entrepreneurship while supporting their investment goals and have invested in well over 100 companies since our founding in 2000.
Who We Are
Our membership is comprised of:
- Entrepreneurs who have founded and grown companies to exits
- Operating executives from tech/non-tech companies
- Business leaders from our region, including representatives from local VC firms, Financiers, Law Firm partners, and Service Organizations
Our members are unified in their passion to help build our local economy, actively assist our invested companies, earn positive returns with their investments, and establish meaningful connections with their peers and in the startup ecosystem.
Whether your goal is to enhance your portfolio return, build your investing skills, leverage broad and deep expertise in a variety of domains, or help support local economic development, consider these benefits:
- Learn about Angel Investing from other members who have many deals and years of experience
- Work with a set of tried and proven processes to select and invest in companies
- Get access to a qualified pipeline of deals to consider for your portfolio
- Benefit from shared efforts on screening companies and doing due diligence tasks
- Expand your investment horizons by leveraging the deep expertise of our group across a broad set of markets & technologies
- Enjoy networking with a broad set of top professionals in a collegiate atmosphere
How We Invest
Sacramento Angel members make their own individual decisions about whether to invest and how much in any particular startup. Members can invest either through our Sacramento Angel LLC or as an individual direct investor.
Sacramento Angels LLC Overview
The Sacramento Angels LLC is structured exclusively for the benefit of Sacramento Angels members. The LLC serves as an aggregation vehicle, combining individual member investments into a larger aggregate investment in a particular company’s offering. This simplifies the transaction for our members and the company we are investing in. The startup only deals with one set of deal paperwork, one cash transaction, and one capitalization table entry for the Sacramento Angels.
There is no management fee or carried interest associated with investing through the LLC – 100% of the returns from a particular investment are distributed pro-rata among the investing members in that investment (less out-of-pocket administration expenses).
LLC Benefits to Sacramento Angels Members
By aggregating Angel’s investments into a larger check-size, the Sacramento Angels’ multi-class limited liability corporation (LLC) allows angel members to access deals they otherwise could not as individual investors, have larger influence negotiating with our portfolio companies, and lowers individual investment thresholds, easing the investor’s process of assembling a diversified portfolio of startup companies. Investors also benefit from simplified record-keeping and year-end tax reporting.
LLC Eligibility of Investors
Investment in the Sacramento Angels LLC is limited exclusively to active members of the Sacramento Angels.
How We Work
Application & Screening Process
The Sacramento Angels accept applications through Dealum. Typically, companies that apply come either through direct application or referrals from members/partners. Our Selections team reviews all applications and narrows the list to a select few based on how compelling the business and related investment opportunity is for our group. This may involve pre-screening sessions with select applicants. From that process, two companies are selected to meet with our full group at one of our investor meetings.
We hold investor meetings every 6-8 weeks (2 companies present at each session). These are highly interactive sessions involving a combination of formal presentations, demos, and Q&A. We typically provide immediate feedback on our interest level at the meeting. This can be either to move straight into a group due diligence effort to consider for investment or to offer ongoing assistance for future consideration.
The investment due diligence can take from a few weeks to a few months. The more prepared you are with a completed due diligence form, comprehensive data room, and references, the faster the process goes. If due diligence is positive, investment terms are negotiated unless they already exist, and then a due diligence report is circulated to the entire Membership to determine final interest. The majority of our investments are made through a single transaction via our LLC although we also allow our members to directly invest.
As experienced entrepreneurs and business executives, we will assist our portfolio companies as needed. Sometimes, as part of the investment, and depending on the deal terms and the extent of our participation, members may serve on your board of directors, or act as an advisor in a business or domain sense. We are also often a source of connections to downstream investors, customers, partners, and talent. Ongoing communication is critical. We expect to hear regular updates on your progress and any opportunities where we might assist you in your success.
Inquire About Membership
We welcome inquiries from people interested in joining us. Membership in the Sacramento Angels is only available to individuals and entities that qualify as Accredited Investors under SEC rules, Section 501 (D).
Ideal prospective members share one or more of the following characteristics:
- A track record in managing and building successful companies either as an entrepreneur or operating executive.
- Familiarity or experience with angel investing, leading due diligence, structuring investments, and coaching entrepreneurs.
- A peer network of domain expertise and related skills.
- Connections for subsequent funding, talent, and technology.
Key expectations from members are:
- A willingness to dedicate time and effort to participate in selecting companies, executing due diligence, leading deals, and/or mentoring our companies.
- Regular participation in our investor meetings (7 per year).
- Investment in a minimum of two deals over a two-year period
- Members are expected to abide by the Sacramento Angels Code of Conduct and serve at the pleasure of the Board. Noncompliance can result in membership being revoked
Learn, collaborate, and invest
with the Sacramento Angels
“The Sacramento Angels have been instrumental in helping me learn and gain confidence as an angel investor. With their help, angel investing has become not just a side hobby but a real passion and a meaningful part of my life.”
Founder & CEO
Past President, Entrepreneurs Organization, Board Member, Sacramento Angels