Who Are Angel Investors?

The following is a guest post by Teresa Esser, Managing Director of Silicon Pastures an angel investment network based in the Milwaukee region.

Who are angel investors?

Some angel investors are doctors and lawyers, supermodels or professional athletes.  But angel investors can also be school teachers, plumbers, construction workers or others who made the decision to work hard and save their money.

There is nothing particularly extraordinary about people who decide to become angels.  Many are modest, everyday folks who took a risk, seized an opportunity, stuck their neck out, and found a way to create jobs for themselves and the people around them. 

Silicon Pastures knows that at one point, everyone who eventually went on to become very successful started out as a novice in their chosen field.   There is no such thing as being born an expert.  To succeed, you have to take classes, ask questions, and do homework. 

It's the same thing with angel investing.

When you begin a new career -- or a new hobby -- as an angel investor, you have to start at the beginning.

No one has a wealth of experience on day one.

And that's okay.  Because on Wednesday, February 13th, Silicon Pastures will hold an educational seminar on two of the most important parts of angel investing: Term Sheets and Taxation. 

The class will happen over the lunch hour, and food will be provided.

The Term Sheets & Tax Class will be taught by Attorney John McDonald of the Godfrey & Kahn Law Firm.  Attorney McDonald will use one or more case studies to walk prospective investors through the life cycle of a hypothetical investment.

The class will cover topics like:

  • What kinds of terms are more favorable to angel investors? 

  • What kinds of terms are more favorable to entrepreneurs?

  • How do angels and entrepreneurs negotiate?

  • How can different terms lead to different results, when it's time to cash out?

  • What's the difference between common, preferred, and participating preferred?

  • What are the tax benefits of angel investing? 

  • What is the difference between buying units of an LLC vs. shares of a C corp?

  • What is a K-1, and how do I know if I need one?

  • What is Wisconsin's Act 255? 

  • Who decides whether a company qualifies to be a QNBV?

The class is free and open to the public.If you would like to take this class, please register here.