Please remember: Gaingels is a network, not a fund. Every member of the network makes a decision themselves about whether or not they wish to invest in an opportunity and how much they will invest.
How are companies selected to present at investor meetings?
The Gaingels selection committee decides what companies get to present at our investor meetings around the world. Priority is always given to:
(a) Member led opportunities where a member has already invested or has committed to invest;
(b) existing portfolio companies raising new rounds;
(c) companies that have been introduced by members or other people we know and trust.
Companies we invest in generally fall into 3 categories:
a) Institutional early stage
b) Later stage
Note: For institutional early stage and later stage, as well as non-startup opportunities, Gaingels will almost always co-invest/follow a lead investor.
Gaingels generally leads or co invests at this stage. We always prioritize companies a Gaingels member has already committed to invest in. We generally follow the following process, which changes depending on timing with investor meeting and an a case by case basis:
- Deep Dive
- (3.1) Due diligence and deal memo (3.2) Negotiating terms/Term sheet.
- Collection of commitments from members
- Sign and close investment
- Support company
In the event there is less than $100k of interest, Gaingels will offer to make introductions directly to the presenting company. With at least $100k of member interest, Gaingels as a group creates a single purpose LLC (SPV) for all members to pool their investment and this SPV invests as a single entity.
What if we decide not to invest?
Like almost all early stage investment groups, Gaingels invests in less that 5% of the companies we meet. Like almost every investor, a no generally means “not now” as opposed to “not ever”. We always try to help every company we meet be it with introductions or “radical candor” feedback.