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Desert Angels has helped 165+ companies launch

We are a Tucson, Arizona-based non-profit organization of accredited investors who seek opportunities to invest in Southwest regional and North American startups and early-stage companies.

About Us

Desert Angels is the Leading Angel Group in the Southwest Since 2000

Recognized as one of the most active angel groups in the country since 2017 ranked #1 in the southwest and consistently in the top 5 in the country according to the ARI HALO report. https://angelresourceinstitute.org/research-reports.php

Who is Desert Angels

Founded in 2000, Desert Angels is a Tucson-based non-profit organization of accredited investors seeking opportunities to invest in startup and early-stage companies. We represent a network of 100+ active angel investors, who have invested $62.5+ million into 165+  companies, and 12+ Sidecar investment funds. Our members invest via several vehicles which include: direct individual investment, the use of an SPV formed by members for affecting a larger investment as a group, and via investment by a group fund.

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Present your Company

Desert Angels welcomes applications from startup and early-stage companies located in North America. Our 100+ members actively evaluate applications on an ongoing basis with screening sessions every month. Offerings must be in the form of preferred equity or a convertible note with a capitalization limit. SAFE notes will NOT be considered. We use the Dealum deal flow management platform which facilitates expeditious deal flow while enabling ease of syndication to best ensure opportunity for full funding of each offering.

Learn About the Funding Application Process

Become a Member

As a vibrant organization, Desert Angels welcomes new members. If you are an accredited investor with an appetite for helping early-stage companies succeed, we would love to get to know you as our guest at an upcoming dinner meeting.

Learn about Angel Investing as a Desert Angels Member

Request an Invitation to a Meeting – if you know a member of Desert Angels, you may ask them to submit a meeting guest invitation to include you in an upcoming meeting.

What is Angel Investing?

Angel investors provide initial seed money for startup businesses, usually in exchange for ownership equity in the company. These investors may be wealthy individuals who seek higher returns than traditional investment opportunities offer. Angel investing is risky, with only about 11% of ventures resulting in success1. Ventures backed by angel investors often receive relatively modest investments, averaging around $42,000 per venture. Unlike loans, angel investors don’t expect immediate repayment; they focus on helping startups take their first steps toward success.

Desert Angels - Vision & Mission

Vision:  to be recognized as an innovative leader in early-stage investing

Mission:  to generate meaningful returns for our members and early-stage companies through investment, connection, and investor education; and to stimulate and support the creation of a strong entrepreneurial economy in Arizona.

By the Numbers

Companies Funded

Millions US$ Invested

Deals Invested

Deals Year to Date

Years Of Experience

Active Members

Applications / Year

TESTIMONIALS

Our Clients Feedback About Their Experience With Us

Angel investment is not only about the money.  Angels bring years of business management and subject matter expertise to bear in assisting you achieve your goals more repidly.

“Desert Angels is the cornerstone for Reglagene. We owe much of our success to the investment and support given to our company by Desert Angels since our startup and continuing their mentorship, guidance, and investment into our current stage.”

Richard Austin, PhD

CEO, Reglagene, Inc.

“It is safe to say that there would have been no Calimmune without the support of the Desert Angels from startup and on through multiple rounds leading to our ultimate success.”

Louis Bretton

CEO, Calimune, Inc.

Happy Founders

Quick Facts

Common Questions Answered

A few of our most commonly seen questions.

What is the importance of Intellectual Property?

Protectable intellectual property or unique competitive advantages help establish a defensible moat around your business.

What is a pre-money valuation?

Early-stage investing is extremely high risk; valuations must be commensurate with risks. Valuation strongly depends on whether or not you are generating revenue.  An idea without a good go-to-market strategy will typically have a lower justifiable valuation.

Pre-money valuation is the value that an interested investor should attribute to the interest (if a note is offered), or equity purchase that you are offering to determine if the offer is for a fair value.

What are the keys to a good management team?

Domain expertise in field or function; passion and energy; credibility; coachability and the demonstrated ability to work well as a team.

What are the most commonly accepted forms of funding?

Angel Investors consider several forms of funding as being most accepted. These include: (1) Preferred Equity, (2) Convertible Notes (essentially a short-term – 12 to 36 months in duration loan) that earn interest over the term of the note, and upon the occurrence of either the end of the note term or a pre-defined financing event convert to a specified form or equity, most typically preferred equity the purchase price of that equity is subject to a discount of 10% to as high as 30%, (3) Bridge Notes – a very short term (less than 18 months) form of a Convertible note, which in addition to earning interest and enabling the purchase of the to be issued equity at a pre-defined discount, is also protected by a pre-defined conversion limit or ceiling, which provides superior value protection to the investor at the time of the conversion event.  

What forms of funding are least accepted?

Most angel investors will NOT accept offerings that use a SAFE note as the method of investment funding. SAFE notes, or Simple Agreement for Future Equity is a financial instrument used in startup investing that allows investors to provide capital to a startup in exchange for a promise of future equity. A SAFE note has two key components neither is sufficient to imply or ensure “equitable” value for the investment made. These two components are the valuation cap and the discount rate. Of these two features, only the discount rate is assured. The valuation cap is NOT always specified, and even when it is specified it is subject to revocation which may result in the “cram-down” of the value to be received when the “future equity” event occurs. Angel investing is one of the highest-risk types of investment, the use of a SAFE note further exaggerates the risk to the detriment of the investor.

A SAFE is a contract. It is neither debt nor equity, just an agreement. The contract agreement indicates that the company is to distribute shares to investors in the future in exchange for money today. All this means is that the investor holds an “IOU” for equity, should equity ever be issued. It is not debt like a Note, so the investors do not have a claim on any assets of the company if things deteriorate. It is not equity, so the investors do not have any governance rights, information rights, voting rights, or any rights to help steer the company. If the company breaches the SAFE contract, what is the recourse? Perhaps only to sue the struggling startup and incur legal costs, which will not be recoverable, while forcing the company into bankruptcy in which case the SAFE holder has no claims.

DESERT ANGELS BLOG

Latest News

Our portfolio companies and Desert Angels news and items of interest.

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