Investors FAQ

We invest in high-tech companies, across multiple verticals.

Yes. Multiple startups have raised convertible notes on our platform.

Our deal flow comes from multiple channels: close networking with Israel’s top entrepreneurs, inward traffic from entrepreneurs that apply on our site, referrals from lead angel investors, and referrals from other entrepreneurs. Having a lead angel committed to the round is a prerequisite for receiving funding from iAngels.

Our lead angels are investors with a proven track record of successfully investing in Israeli early stage companies. We have conducted extensive research to identify the most successful angel investors and VC firms in Israel over the past 10 years.

No. We conduct a rigorous internal due diligence process, which involves assessment of the entrepreneurs, market, technology, product, customers, legal, financials and product traction. Only companies that successfully make it through our due diligence process are selected. Currently we select around 3% of the deals we evaluate.

Upon receiving a company referral, we meet with the entrepreneurs and get to know them and their company. Following this, our in-house investments team conducts extensive research on multiple aspects of the company, which is then submitted to a five-member investment committee.

We have found that angel investing in Israel is often a syndication business. Angels tend to invest together, since they each have caps on their initial investments, which come out of their personal funds. Specifically, even the largest and most successful angels in Israel typically invest no more than $100-200k per opportunity. As such, angels are always looking for good partners to help them close rounds fast and add value to their companies.

All investment decisions must have a consensus vote by our investment commitee, which includes our management, Chairman, and Portfolio Manager.

Depending on what stage in a company’s growth iAngels invests at, and what stake we take, we will often take membership or observer status on a company’s board. On occasions when we opt not to take a board seat, We ensure that the angel or VC we invest with has board membership, thereby ensuring that our interests will be protected as well.

The specific protections vary from deal to deal and are determined by the terms negotiated in the round.We typically receive at least 1x liquidation preference, information rights and preemption rights. iAngels always participates in the round under the same terms as the lead investors.

Lead angels work with us because we bring value to investors and entrepreneurs – helping to raise capital quickly and efficiently, and building global networks of influential co-investors.

We assess approximately 100 companies per month, selecting two on average.

In most cases, your tax obligation is the capital gains tax in your country of origin. Please refer to our tax page for more information. In any case, you should check the specifics with your accountant or financial advisor.

An investor can exit his/her position when the company they invested in is acquired or goes public.

Our vision is to create a secondary market within our investor community in which purchased shares can be sold to other investors in future rounds. That said, we do not currently have an official secondary market. You may contact us if you are an iAngels investor and are interested in divesting your position in one of our portfolio companies. However, our ability to find a buyer is largely dependent on the respective company’s traction.

Investing in startups is a high-risk venture. Our due diligence process is rigorous in order to mitigate the risks involved as much as possible, but at the end of the day each investor assumes risk when investing in early stage companies.  If the start-up fails and goes out of business, most investors lose their money unless there is a liquidation event that makes them whole.

Yes. Many of our portfolio companies have already run successful follow-on investments through iAngels. In the scenario of a follow on, we routinely provide the original investors with the opportunity to follow up their initial investment, and at times we may open the opportunity to our full investor community.

In addition to your personal dashboard, which contains a comprehensive summary and up-to-date information on your investments, we provide regular snapshots on all of our portfolio companies. If you have trouble viewing these updates, contact us.

While we have many investors who take a “hands off” approach, we also have investors who want to provide value to our startups through mentorship, relevant connections, or advice. Should you wish to assist a startup you invested in, please contact us and we will put you in touch with a member of their team.

Investor accreditation is determined by the financial regulations in your country of residence (usually, the country in which you pay income tax). To see if you qualify, check the regulations in your country or check with your financial or tax advisor.

The purpose of the law is to protect investors from risk. Regulators assume that high net-worth individuals or corporate executives have greater ability to understand the risks associated with angel investing and can afford to take those risks.

Yes, if your corporation, LLC or association qualifies as an accredited investor. Many iAngels investors are corporations. You will be required to provide proper identification proving that you are connected to the relevant corporation and you may be asked to verify your corporation’s credentials as an accredited investor.

iAngels charges a one time fee of 10% paid upfront, and a 20% carried interest on profits.

All of our transactions are designated in US Dollars.  If you are more comfortable investing in your country’s currency, iAngels will convert your local currency into US dollars and will report wealth creation in US Dollars.

All investments in startups via iAngels are underwritten by iAngels itself. As such, all deals launched will reach their respective target sum.

After you commit to an investment, you will wire the funds to a secured escrow bank account. Upon the closing of the round the money is transferred to the startup.

iAngels invests via iAngels Technologies LP, a Delaware Series Limited Partnership, which issues a separate series for each iAngels investment. In each case, iAngels Crowd Ltd. acts as the general partner, and investors act as limited partners. For a detailed overview click here.

No.

Immediately after launching a new startup on our platform, we host a webinar with the founder(s) in order for our investors to get to know and interact with them.  This webinar includes a Q&A session, which is then available online for those unable to attend the webinar. If you have further questions for the company, you can ask these via a member of the iAngels team.