Frequently Asked Questions
Q: What is an Angel Group?
A: An angel group is a group of individual investors, focused on investments with a particular focus.
In the case of Boynton Angels, our investment criteria are:
- Located within a 2-hour drive of Worcester.
- Strong management team.
- Product or service released for sale, or close to release.
- Member meetings
- Business relies primarily on technology, including: biomedical devices, biotechnology, materials, chemistry, energy, software. We typically do not invest in retail businesses nor in pharmaceutical development.
Q: What is “Boynton Angels”?
A: Boynton Angels is the first formal angel group to be formed in and focused on Central Massachusetts. The group intends
to target investments in technology companies within a two-hour radius of Worcester, Massachusetts. The formation of Boynton
Angels is the result of the broad-based efforts of a consortium of the area’s business and technology leaders. Boynton Angels
is a member of the Angel Capital Association, a national association of angel investor groups sponsored by the Kauffman Foundation.
Q: How is Boynton Angels organized and operated?
A: Boynton Angels is a limited liability corporation. The legal entity exists solely to organize and operate the monthly meetings
(and supporting meetings) where entrepreneurs and member investors are brought together. Boynton Angels is not a dealer/broker and
it does not make investments itself, nor does it advise for or against any particular investment. We have one part-time administator,
external legal counsel, and three operating committees:
- Executive committee (policy, resolving policy and operating issues between member meetings)
- Screening committee (screening of prospective business plans prior to the investor meetings)
- Membership committee (new member outreach, current member ombudsman, community outreach and sponsorships)
Q: What is the Boynton Angels process?
A: Entrepreneurs submit business summaries or business plans to our screening committee. Those plans that are accepted by the
committee are then presented to the general membership. Members who are interested in pursuing the investment indicate their
interest and form a due diligence team. Term sheet negotiation is done by the due diligence team and any member interested in
making the investment is invited to invest. We will sometimes co-invest alongside other angel groups, private investors or venture
capital firms. We look for preferred stock and board representation or observer rights. Generally, a member of the due diligence
team becomes the “deal captain” and reports periodically to Boynton Angels on the status of the investment.
Q: How much money do the Boynton Angels typically invest?
A: We can commit $50,000 to $750,000 or more per deal, depending on how many members participate. Boynton Angels does not invest from
a pooled fund. Rather, each member individually determines his or her interest level in a particular investment opportunity. Investment
is voluntary. Individual investment typically ranges from $10,000 - $25,000 per opportunity. Each member is likely to make 1-3
investments per year.
Q: What does a membership in Boynton Angels cost?
A: Members are assessed a nominal dues amount each year. This money is used to help pay for the groups
operations, including screening and deal meetings, membership outreach, support of regional entrepreneurship
contests, legal fees, administration and dues to other organizations.
Q: What’s in it for me?
A: The reasons that people join angel groups and why they make angel investments are as varied as there are
members. In many cases, people find angel groups a better source of a variety of early-stage investment
opportunities than they’d have otherwise. Through outreach to the area and local universities, and through
interaction with other angel groups, we are able to see better “deal flow.”
The members of the group have a broad set of backgrounds in management, technology, finance, and other disciplines. Collaboration among members improves investment decision making and saves significant time and money. Thus, the members help each other do a better job of qualifying and researching deals than could be done by the member individually.
Some members may look strictly for financial return. Others may be interested in the broader goal of regional economic development. Others may be interested in investing in a particular technology or business model. In any case, Investment decisions are made individually and investment results will vary. We also hold periodic social events that provide a venue for members to strengthen their networking ties.
Please note that we do not encourage Boynton Angel members to consult (for compensation) with any of our portfolio companies. We want to ensure that entrepreneurs can be confident that when they are presenting to Boynton Angels, they are presenting to a group that has, as its primary interest, determining the quality of the investment opportunity, not a consulting opportunity.
Q: What is expected of a Boynton Angel member?
A: We encourage members to commit at least $50,000 per year in investments. Members are expected
to contribute their personal experience, expertise and networks to the Boynton Angel community. We
encourage members to refer attractive investment opportunities and potential member candidates
to the group. All members must be “qualfied investors” (All members must be accredited investors as set forth in Rule 501of the
Securities and Exchange Commission regulations, see www.sec.gov/answers/accredhtm.) We expect members to adhere to our code of
conduct, and we discourage members from entering into for-fee consulting or other service agreements with portfolio companies.
Q: When do we meet?
A: General meetings are held the first Friday of each month – September through May either in Westboro, MA or Worcester, MA
to review and discuss presentations from companies. An e-mail notification will be sent prior to each
meeting. A calendar is available on our website.
Q: How do I become a Boynton Angel member?
A: Please send an e-mail to: membership@boyntonangels.com to get a membership packet. If you like, we
can also make arrangements for you to attend one of the regular monthly meetings so you can have
first-hand experience prior to making your decision.
Q: Now that I'm a member, what next?
A: Members attend monthly meetings (10 per year) and usually hear presentations from twocompanies.
If members are interested in pursuing an investment, one member will become a “deal captain” and
form a subcommittee to perform due diligence, term sheet negotiation and coordinate the investment.
The deal captain will also provide periodic updates to the group on the status of the investment.