How to Apply
For the best chance of success, review this page before applying.Since 2000, Desert Angels has supported startups by funding high-potential ventures through a structured, proven process.
IMPORTANT! Click to learn more before you start!
Stage 1 – the Application & DealIQ™
- The core or basic application
- Payment of a $100 non-refundable application fee
- Completion of the DealIQ™ Lite readiness survey
Stage 2 – Pre-Screening
When your application and DealIQ™ Lite report receive a favorable review and a sufficient number of favorable member votes or expressions of interest. In that case, they will cause your application to progress to the Screening stage.
When your application moves forward to the Screening stage, you will be asked to provide answers to additional questions.
Stage 3 – Screening
The Screening Panel consists of members who have an interest in your application and will always include subject matter experts (“SME”).
All Screening sessions are conducted using a Zoom virtual meeting where you are given 10 minutes to present your solution and funding offering, and 10 minutes to answer questions from Screening Panel members.
Based upon the votes from the Screening Panel, including the identification of a member who will serve as your “Deal Lead”, your application may next be promoted to have the opportunity to present to our full membership, some of whom might attend virtually, others in person.
Stage 4 – Due Diligence
With due diligence, our process seeks to ensure that our members have a thorough understanding of your startup’s business, founding team, executive management group, operations, go-to-market plans, and growth prospects. This process helps us make informed decisions while minimizing risks for all involved parties. Our goal is to complete this stage in one to two weeks
Stage 5 – Open Round
When a “deal” has a Deal Lead, and has received votes approving the application for investment, the deal is moved to the Open Round stage.
Investments occur via several channels. These include:
- Individual Member Investment
- Investment from an SPV formed by a group of members to make a sufficiently large investment involving investments from the collected members.
- Investment from a Desert Angels fund.
At this stage, subject to the approval of the applicant, Desert Angels will also present the opportunity to our syndication partners.
Stage 6 – Syndication
As an established and respected syndication partner Desert Angels sponsors and promotes investment in promising applications via several active methods. These include:
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- Angel Capital Association
- Angel Syndication Network
- Keiretsu Syndication Forum
Be Prepared – Before You Start
Critical elements of the Desert Angels funding application process and content include all of the following:
(i) Your business structure must be as a C-corporation or imminent plan to convert to this business structure.
(ii) Your offering must be in the form of either Preferred Equity or Convertible Note with a term of not more than 24 months;
(iii) The use of SAFE notes will not be considered.
(iv) The minimum investment or “ticket” size should be not more than $10,000. This is possible where your business has implemented the use of any one of several easily implemented and relatively low-cost cloud-based cap table solutions.
Pre-Screening – Initial Review
With the initial review of your application and supporting materials, including your submitted DealIQ™ Lite report, we will assess if your company aligns with the investment criteria of Desert Angels. If it does, you will receive an invitation to present to our Screening Panel. The final selection will be based on the deliberations of the Screening panel members, their expression of funding interest, and the designation of a Deal Lead. Each month, Desert Angels selects one to three companies to proceed into Due Diligence. Please note that Desert Angels Screening Committee Meetings are held monthly, and occasionally more frequently depending on the volume of well-qualified applications received.
All Screening Committee Meetings are held in virtual meeting mode using Zoom.
The Application Process
Two steps must be completed when applying for funding from Desert Angels.
- Complete our basic application. When you are ready to start, completing the basic application typically takes less than 15 minutes.
- If this is your first time making a funding application, you will need to register for an account. Desert Angels uses the Dealum Deal Flow Management Platform. With Dealum, when you register for an account you are given your own Company “Deal Room” where you own all of your information, and if desired you can invite other angel groups to consider your deal.
- Application questions are presented at each step in the deal flow process. Questions may be required or optional. Actual practice has shown that being able to answer the optional questions very often leads to improvement in investment decisions. Please complete each question to be considered by our reviewers, who are accredited investors with angel investment experience.
- You should be able to upload your Executive Summary, Sales & Expense forecasts for the next 3 to 5 years including cash flow, and P&L and Balance Sheet for the previous 1-2 years, if available. The application has multiple “tabs”. Each time you click the Next button on any tab, your answers will be saved, and you can then return to complete the application. When you have completed the questions to be answered, click the Submit button to send your application to Desert Angels, you must then proceed to step 3.
- If you have an active application that you would like to update or to create and share a new funding round, please click Continue Your Application to go to your Company Deal Room that was created for you when you first applied to Desert Angels where you can update an existing application, and create follow on funding rounds to share with Desert Angels as well as other angel groups that use the Dealum platform. The link will open in a new tab and is best viewed either on a desktop or notebook or in landscape mode on cellphones and tablets. Once you complete and click the Submit button, you must then proceed to step 4.
- Pay the small application fee. When you are ready to submit your application, you will be asked to pay a small application fee of $100. This application fee is non-refundable. Payment of the application fee automatically starts the processing of your application. The application fee provides you with prepaid access to make use of the Startup Ecosystem™ DealIQ Lite™ survey and report (click for the FAQs) which you must complete and submit to advance your application to the next stage in the Desert Angels deal flow process.
- Complete and submit the DealIQ Lite™ survey and report How To. DealIQ™ Lite is your “readiness report” based on the facts and metrics associated with your business at its current stage of development. This report is delivered to you to use as you choose and to the Desert Angels deal room within your deal application in the Desert Angels deal room for our members to review as a key part of your application. Our DealIQ™ Report, designed by experienced investors with broad investment portfolios, will comprehensively evaluate your business plan, analyzing the various elements in precise detail. Our methods are objective and scientific, not rooted in subjective opinion. By element, by category, and overall, we can help you zero in on the aspects of your plan that need to be tuned up the most so that opportunities to pitch are not wasted.
Continue to explore the overall Desert Angels application process flow as presented on this page. Use the Contact Us form on this website to contact Desert Angels with your questions before applying.
Open for Investment
What is an Open Round?
An open round is an investment opportunity where we invite our network of syndicate partners to join us in investing additional capital into your company. These partners consist of experienced angel investors and venture capitalists who share our passion for supporting promising startups.
Why Consider an Open Round?
Your startup has shown remarkable progress, and we believe it’s the perfect time to fuel its expansion further. By opening this round to our syndicate partners, we can tap into a broader pool of resources, expertise, and connections that could greatly benefit your company.
Syndication Matters!
Benefits of Syndicate Investment:
• Diverse Expertise: Our syndicate partners bring diverse industry knowledge and experience to the table. Their insights can provide fresh perspectives and help guide your strategic decisions.
• Network Access: Connecting with a broader investor network can open doors to potential customers, partners, and talent that could contribute to your growth trajectory.
• Increased Funding: The additional capital from our syndicate partners can provide the financial support needed to execute your expansion plans more aggressively.
Our Commitment:
Rest assured that our commitment to your success remains unwavering. We see this open round as an opportunity to enhance our partnership and empower your company vision. Our involvement will continue to go beyond just funding, as we’re actively engaged in offering mentorship, guidance, and introductions to industry leaders.
Next Steps:
If you’re open to exploring this opportunity, we’ll make arrangements to introduce you to our syndicate partners.
Screening
Upon receipt and review of your DealIQ™ Lite report submission, and your replies to any questions posed, the Desert Angels Screening panel will vote to follow-up, decline, or advance your application to the next stage.
Screening involves participation by and among all Desert Angels members and member groups. When an application advances to the Screening stage, it must have completed and submitted a DealIQ™ Lite report.
The screening process typically requires a minimum of 3 days to a maximum of 2 weeks depending on the time required to receive answers to any questions which may be asked by the Screening Panel.
All Screening Committee Meetings are held in virtual meeting mode using Zoom. At the conclusion of the Screening stage, Desert Angels Members and Groups will record their expression(s) of funding interest, and designate a Member Deal Lead. Where there is favorable interest, and a Deal Lead is defined, your application will advance to the next step.
The Heart of the Matter: Due Diligence
Without sound due diligence, there will be no investment opportunity.
Please understand that the due diligence process is a standard practice that helps both parties make well-informed decisions. We value transparency and open communication throughout this process. If you have any questions or need clarification at any stage, feel free to reach out to us.
- Initial Evaluation: We begin by reviewing your pitch deck, business plan, and any other relevant materials you’ve provided. This initial assessment helps us determine if your startup aligns with our investment criteria and goals.
- Management Team: We examine the background, experience, and skills of your management team. A strong and capable team is a crucial factor in the success of any startup.
- Market Analysis: We analyze the market you’re targeting, assessing its size, potential for growth, and competitive landscape. This helps us understand your startup’s positioning and differentiation.
- Product/Service Evaluation: We delve into your product or service offering, understanding its unique value proposition and how it addresses a market need.
- Financial Review: A comprehensive financial analysis is conducted, including revenue projections, cost structures, and funding requirements. This helps us gauge the financial viability of your business.
- Intellectual Property: We assess the status of your intellectual property, including patents, trademarks, and copyrights, to ensure their protection.
- Customer and Partner Validation: We may reach out to your customers, partners, and industry experts to validate your business claims and reputation.
- Legal and Regulatory Check: We review legal documents, contracts, and regulatory compliance to identify potential legal challenges.
- Operational Due Diligence: This involves understanding your operational processes, supply chain, and any potential operational risks.
- Reference Checks: We might ask for references to gain insights into your professional relationships and work ethics.
- Final Decision: Based on the findings from the due diligence process, we make an informed investment decision. If everything aligns positively, we move forward with the investment.