All Investor FAQs
Due Diligence
What sectors does iAngels invest in?
We invest in high-tech companies, across multiple verticals.
Does iAngels raise convertible loans for startups?
Yes. Multiple startups have raised convertible notes on our platform.
How does iAngels receive its deal flow?
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.
How do you determine who is a lead angel?
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.
Do you automatically take any deal an angel gives you?
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.
What is your due diligence process?
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.
How do you know you’re not suffering from adverse selection?
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.
Who decides which opportunities to raise on the platform?
All investment decisions must have a consensus vote by our investment commitee, which includes our management, Chairman, and Portfolio Manager.
Do you take a board seat?
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.
What protections do I have as an investor?
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.
What’s in it for the angels sourcing the deals for iAngels?
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.
How many deals do you select?
We assess approximately 100 companies per month, selecting two on average.
Post Investment
What is my tax obligation when investing through iAngels?
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.
How does an investor exit their position?
An investor can exit his/her position when the company they invested in is acquired or goes public.
Is it possible to sell my shares to other investors on the platform?
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.
What happens if the company I invested in goes out of business?
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.
Does iAngels raise follow-on rounds for startups as well?
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.
Can I see the progress of my investments?
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.
How involved can I be as an investor?
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.
Investing Considerations
How do I know if I qualify as an "accredited investor"?
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.
Why are these opportunities open only to "accredited investors"?
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.
Can I invest in the name of my business/association?
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.
What is iAngels’ fee structure?
iAngels charges a one time fee of 10% paid upfront, and a 20% carried interest on profits.
What currency does iAngels use for its transactions?
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.
If the target amount is not raised by a startup, will I receive a refund?
All investments in startups via iAngels are underwritten by iAngels itself. As such, all deals launched will reach their respective target sum.
How is my money transferred to the startup?
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.
What is the investment vehicle for iAngels investments?
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.
Do you take a fee from the startup?
No.
Can I ask the entrepreneurs questions?
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.