First Angels

First Angels is an angel network formed to make financial and intellectual capital available for early stage and growing entrepreneurial companies in West Michigan, primarily the Kalamazoo Region. The members of the network seek a balance among risk-adjusted returns, enhanced job creation and economic development in the region.

Potential investments or deal flow will be generated from referrals from the following sources:
  • SWMF Life Science Fund
  • Southwest Michigan First
  • Other Midwest-based networks and venture capital funds
  • Kalamazoo Bank Consortium for Innovation
  • Michigan-based university tech transfer offices
  • The Biosciences Research and Commercialization Center at Western Michigan University
  • Local private investment groups

The investment process will continue to evolve over time, but will adhere to the following basic structure:

  1. Screening:  An evaluation of the company will be performed to determine if the company is "ready" for angel funding.  
  2. Presentation to Potential Angel Investors: Companies which advance past the screening step will be scheduled to make a 30-minute presentation to members of First Angels at a monthly meeting.
  3. Due Diligence: If a group of investors is interested in making an investment, a team will be formed to complete due diligence. The team will engage the services of a professional (i.e. lawyer) as needed.
  4. Investment Recommendation: Upon completion of due diligence, the team will make an investment recommendation, allowing each individual investor/angel to make an investment decision.

Frequently Asked Questions
Why do we want to launch an Angel Network in Kalamazoo?
It is Southwest Michigan First's belief that a company can never have too much early stage capital.  To address the funding gap for companies looking for an investment between $250,000 and $1 million, Southwest Michigan First formed First Angels to fill the gap and provide an excellent source of mentors for early stage companies.

How will the angel network operate in relation to Southwest Michigan First?
Southwest Michigan First will supply the leadership and financial resources required to launch and sustain the network. It is anticipated that the group will charge annual membership fees and generate sponsorships to eventually achieve financial independence.  At that point, the network may be spun out, or Southwest Michigan First could continue to fulfill the administrative role on a fee for service basis.

How will investment decisions be made?
Each accredited angel investor will make his or her own investment decisions.  A minimum investment of $10,000-$25,000 per deal may exist, based on a common term sheet. The type of investment - convertible debt, equity, etc. - will depend on each individual deal.

What will be the structure of the angel network?
The structure will be a not-for-profit entity that is member-led. That is, each individual member will make his or her own investment decisions, and the angels interested in any deal will need to complete due diligence as a team.  Therefore it is very important to build a culture of active investors willing to contribute to the large amount of work involved in deal flow, vetting opportunities, presentation preparation, due diligence, negotiation and post-investment monitoring.

How do I learn more?
To learn more, contact Paul Neeb, Chairman of First Angels, at  paul@realbiotechnology.com.

Submit a Business Plan

First Angels uses Angelsoft to track new submissions and to collaborate with entrepreneurs.  New users are asked to register and create a username and password.  Upon completion of your registration, you will be able to login and fill out the standardized Entrepreneur Application Form.
 

Please fill out the application completely. You may stop at any time during the process, save your work and return to the website to finish at a later date.

Click here to submit a business plan.


Upon submission:

  1. 1.  You will receive a confirmation email from Angelsoft containing a download link where you can access the Angelsoft client.
  2. 2.  A one-page .pdf containing all the application information will be generated. You will be able to preview this .pdf during the application process and save it to your computer at anytime.
  3.  A private and secure 'deal room' will be created. You can then use the Angelsoft client to access this room.  The deal room is the collaboration center between you and our investment group.  You will be able to store deal-related documents, exchange messages, create events and see which investors are interested in your company.

We look forward to working with you through this process. If you have any technical questions or concerns regarding the application process or the Angelsoft client, please contact support@angelsoft.net.