Becoming An Angel
We’re a community of accredited investors who have unique backgrounds, motivations, and investment goals.
Some of our members are experienced venture capitalists seeking to broaden their investment portfolio. Others are newer investors looking to develop their skills and network with more experienced investors.
All are passionate about supporting the entrepreneurs whose businesses will drive St. Louis’ regional economy in the future.
We encourage each of our members to consider investing a minimum of $50,000 per year directly in one or more startups, in partnership with other members of the Arch Angels network. All members investing in each round generally invest under the same terms and conditions.
To learn more about joining the Arch Angels, please contact Brian Kinman at bkinman902@gmail.com.
What’s an Angel Investor?
Angel investors are high-net-worth individuals who invest their own money in startup businesses. Their goal is to achieve higher returns than public markets typically provide. Many angel investors also enjoy the thrill of helping entrepreneurs grow their businesses.
The term “angel” originated at the turn of the 20th century to describe wealthy individuals who would seemingly appear from heaven to provide financing for the theatrical productions that would have otherwise had to shut down.
Today, angel investors fill the gap between the small-scale financing provided by family and friends and that of venture capitalists. They provide initial funding to fledgling businesses during a period when the risks of failure are relatively high and most investors aren’t prepared to back them.
St. Louis Arch Angel members invest in those traditional “angel” rounds but are also available for later-stage investments in these same companies as they continue to grow and prosper.
SEC Regulations
Click here for a sample accredited investor questionnaire.
Information provided by www.sec.gov
The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.
The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud.
Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or fid an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as “accredited investors”.
One of the major sources of information on which the SEC relies to bring enforcement action is investors themselves — another reason that educated and careful investors are so critical to the functioning of efficient markets. To help support investor education, the SEC offers the public a wealth of educational information on their Internet website, which also includes the EDGAR database of disclosure documents that public companies are required to file with the Commission.
For more information, visit the U.S. Securities and Exchange Commission website.