Lake Superior Angel Network (LSAN)

 

Overview

An angel network is being established to review and invest in early stage, start-up ventures, particularly within the Lake Superior region.

Purpose

·          Provide Lake Superior region investors opportunities for a substantial return on their investments as equity partners in early stage, entrepreneurial businesses.

·          LSAN will be a champion of select entrepreneurs from the region by making investments, mentoring and introducing the entrepreneur to other investors.

·          LSAN will assist in growing the economy of the Lake Superior Region.

Scope

·          Lake Superior Region is defined as those contiguous counties from St. Louis County, MN to the Western U.P. of Michigan. 

·          Typical investments will be made in the range of $50,000 to $500,000. 

·          Larger funding rounds will be introduced to additional angel groups for consideration of “co-investing” in the deal with LSAN.

·          Firms in the Lake Superior Region would be given preference, but firms outside the region could be considered for investment, especially if referred by another, known angel network.

Operations

·          Other than the LSAN name, the organization is not a formal entity, except that members will meet as needed to communicate opportunities, or evaluate applications submitted.

·          Information sharing, communications and much group administration will occur at a secure website/software. 

·          Equity capital will be provided by members of LSAN only after review and members’ acceptance of the firm’s business plan.

·          Each member will independently determine whether he/she is interested in the prospect, and the amount of investment he/she will invest.

·          Members will be aware of names and addresses of the others members of the LSAN.

·          No limits are intended on the types of businesses to be considered, except that they provide legally acceptable products or services and have the potential of providing significant returns.

·          Typically an LLC will be formed for the purpose of the investment in a firm.

·          Administrative duties will be funded through membership dues and sponsorships. Those duties will include to “sift and winnow” the business plans as they are submitted, provide initial research to the members and help organize and market group meetings.

Members will be required to sign a form confirming they are an “accredited investor” as defined under Rule 501 of the SEC regulations--Net worth greater than $1,000,000 or individual income greater than $200,000 ($300,000 if joint filing) in each of the two most recent years.

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