Happy Independence Day to All of the Angel Investors in the United States

The average angel investment is held seven years waiting for a liquidity event such as an IPO or acquisition. Now U.S. investors have their independence.

AngelTrades.com is a U.S.-only network of invited angel investors, focused on accredited participants in flyover states who lack access to the best deals. All listed companies must be domiciled in the United States. Our outside law firm, Hughes, Hubbard & Reed, is one of the earliest security-focused law firms in the nation, established in 1878. Our attorney at the firm was an SEC Commissioner and many of our senior advisors were or are currently state senators and representatives.

AngelTrades invented private company liquidity with Liquid Special Purpose Vehicles™ (LSPVs™), which are single-company 100-share funds. Fund shares are tradable after a one-year hold period on AngelTrades.com.

To protect investors, maintain fair, orderly, and efficient markets, and facilitate funding for early-stage private companies.

To create a secondary market for accredited investment in fast-growing private companies, to inspire public confidence and provide a diverse array of financial opportunities to accredited and eventually U.S. retail investors, entrepreneurs, public companies, and other market participants.

INTEGRITY

We inspire public confidence and trust by always adhering to the highest ethical standards.

EXCELLENCE

The AngelTrades team is committed to excellence in pursuit of our mission on behalf of investing Americans.

ACCOUNTABILITY

We embrace our responsibilities and hold ourselves accountable to our AngelTrade members.

FAIRNESS

We treat members, founders, company representatives and all others fairly and in accordance with the law.

EFFECTIVENESS

We always strive for innovative, flexible, and pragmatic regulatory approaches that achieve our goals and recognize the ever-changing nature of our capital markets.

Deals are submitted by members of the community or a company may submit an application, but the members in both cases must first vote these companies onto the platform with 2/3rds of voting members voting to the affirmative.

Once a company is approved by member vote a fund is named and for each investment 100 shares are made available for reservation and purchase.

Each fund is capped at $3 million and no smaller than $100,000. With 100 shares in each fund this places the initial share value for each fund at $2,000 to $30,000 per share, plus $200-$3,000 per share in management fees (the 1% x 10 years of the 1/10 discussed below).

AngelTrades utilizes Assure.co of Utah, who have completed more than $2.45B in similar investment transactions. They accept the ACH payment from investors and deliver the funds to the company on behalf of AngelTrades and then pay the one-time lifetime management fee of 10% to AngelTrades.

AngelTrades is the only line on the company’s cap table, but the one hundred shares in each fund are tradable amongst members on AngelTrades.com in a typical bid/ask system, with no transaction fees.

Each time shares are bought/sold between members the money is transferred through Assure.co so that the buyer/seller are both protected. All shares are held and traded at AngelTrades.com.

Quarterly, timely and annual updates from each company is required for AngelTrades to consider investment, providing members the ability to make a somewhat informed decision if they choose to buy or sell shares after the one-year hold period ends.

AngelTrades does not charge the standard two and twenty fee structure.

Two & twenty (or “2/20”) is a standard fee arrangement in the venture capital fund industry. The two means two percent of assets under management (AUM), meaning the annual management fee paid to the fund manager. The twenty refers to the standard performance or incentive fee of twenty percent of profits made by the fund beyond the total invested by the limited investment partners (the fund investors).

The two percent management fee is paid to fund managers regardless of the fund’s profitability. A fund manager with $100 million in assets under management earns two million dollars in annual fees even if the fund performs badly. Twenty percent of profit is shared with the fund manager.

AngelTrades charges a fee of one and ten (1/10), with 10% paid per share for lifetime management of shares (1% times 10 year lifetime of fund), and 10% of any profit made by an investor selling the shares of a fund.

The one-time management fee is baked into each share and the 10% carry (profit) is paid to the managing member at AngelTrades, or if AngelTrades is the managing member the share of profit is paid to AngelTrades. After the one-year hold period a share may trade freely if there is an active market for buyers and sellers of a very small number of total shares (100 per fund).

As early investors are able to take profits, or sell slow/bad investments out of their portfolio, more money goes back to the earliest investors, boosting the startup ecosystem as they can now reinvest in other opportunities.

Members can accumulate more shares in the best performing funds from other members if a price is agreed on the Bid/Ask platform.

AngelTrades allows any company with at least one million dollars in revenue to sell some founder’s shares in a fund, to pay down debt that often arises from starting a company, and exhale a little bit. Stress does not produce health and we believe in the health of the founders we invest in.

Because AngelTrades focuses on “fly-over” states, great deals nationally, approved by member vote, would be available to people anywhere in the country, and local deals can stay local and find nationwide investment. This benefits the investors, companies and communities outside of California and New York where talent, office and living space has become cost-prohibitive. As companies stay local they provide jobs, taxes and opportunities for their home state and can stay closer to family and friends.

Happy Independence Day to all U.S. angel investors. AngelTrades provides the liquidity and choice that has been missing from venture funding.

#angeltrades #tradablefunds #angelinvesting #privatecompanyliquidity

Related posts:

A brandable domain name is a term used to describe a domain name that is catchy, memorable, and unique. It is a domain name that can be easily associated with a particular brand, product, or service…

The Strava profile picture is the same as other social networking profile picture. You should change the profile picture from time to time, to make your account more appealing. If you don’t know how…

Search engine optimization or SEO in short, is a set of rules for optimizing your website for search engines and improve your search engine rankings. Basically, SEO helps in improving your website’s…