Learn About Funding

About Our Investment Process

Information for Prospective Portfolio Companies

Since 2000, Desert Angels has ranked as the #1 angel investment group in the Southwest United States measured in terms of active funding proposals accepted for consideration, number of deals accepted for screening, and on into due diligence and ultimately to funding.

As a founding member of both the Angel Capital Association (“ACA”) and the Angel Syndication Network (“ASN”), Desert Angels syndicates the best deals with its syndication partners and its extended network of partner investors to invest in startup and early-stage companies in any sector, at all stages of growth, from pre-seed to pre-IPO.

When considering the offerings from startup and early-stage ventures our members evaluate prospective investment in these areas:

1. 1. Your Team’s distinctive expertise or track record in your industry.
   2. The well-expressed definition of the problem that your business solution is directed to address.
   3. The deal terms and the valuation associated with your offering.

Depending on the exact details of our investment process – which may differ depending on the stage of the company, the sector, and the details of the round, such as co-investors, when your offering has been qualified via screening and more detailed due diligence evaluation, Desert Angels may invest in your offering via several methods. These include any or potentially all direct member investment, the formation and investment via a member-driven, special-purpose vehicle or SPV, or through a syndication process involving our syndication partners.

We have reviewed more than 20,000 applications and approaching 200 investments made, it has been the collective experience of Desert Angels that successful investments score strongly in all three of the areas of evaluation indicated. Of particular significance, at any business stage of growth, starting at the pre-seed and seed-stage level, it is the founding teams having deep industry experience, prior exits, or experience as a senior leader at another high-growth startup that tend to achieve the greatest success.

What Does Desert Angels Invest In?

Desert Angels, its members, and our syndication partners most often invest in companies at all stages of growth. In addition, Desert Angels frequently continues to invest in each round offered by our portfolio companies. Experience, and indeed angel investment statistics demonstrate that this approach better ensures the achievement of a successful exit.

How does Desert Angels Work with its portfolio companies?

As a condition of membership, all our members are required to assist our portfolio companies with their expertise, connections, network, advice, and introductions. As a combination of our network and our staff’s resources and expertise, this falls into the following categories:

Introductions related to Business Development: when asked, our members will leverage their connections to identify potential introductions that may be able to address your business needs. As part of their membership profile, our members identify their areas of personal subject matter expertise and industry experience. The Desert Angels portfolio is significant in terms of sector and stage of growth, and we are always happy to make cross-portfolio introductions where both parties choose to participate.

Provision of Talent: historically, and in several cases, both past and current, Desert Angels members have stepped up to serve as either full or part-time C-level officers of early-stage companies. Bringing this level of entrepreneurial experience to bear in a startup or early-stage business almost certainly lends itself to accelerating the successful growth of that business.

Board Recruitment: Desert Angels members, based on their entrepreneurial business experience are frequently recruited by our portfolio companies to serve on their board of directors or board of advisors.

Follow-on Investment(s): Desert Angels, its members, and our syndication partners seek to invest in each follow-on round offered by our portfolio companies.

What if Desert Angels chooses to not invest?

Like all angel investment groups, Desert Angels can only commit to and complete investment in only a portion of the opportunities that it considers. There can be any number of reasons that investment in an offering does not occur. The reasons are among maturity of completeness of the defined solution, size of the offering or incomplete of inapplicable pre-money valuation or deal terms, or the size, experience of completeness of the management team. In all cases where we decline an investment opportunity at or after the initial screening when Desert Angels makes a reply to your offering with a “no”, this in many cases means “not now” as opposed to “not ever”.