Entrepreneur FAQ's - Information about Angel Investment Procedures

Entrepreneur FAQ

What is the Midwest Investment Network?
The Midwest Investment Network is an online platform designed to connect entrepreneurs (looking for growth or start-up capital) and angel investors (looking for investment opportunities). The Midwest Investment Network is unique in that it offers a local, national and global platform with partner networks across North America, South America, Europe, Africa, Asia and Australasia. The Midwest Investment Network is continually growing, developing and updating its extensive database of angel investors.

What is an Angel Investor?
Originally, the term "angel" was coined to refer to the people who financed Broadway plays when all else failed. Today this term has become common within the investment community to refer to a high net-worth individual that invests their own personal funds in various businesses. In the US, it is estimated that there are well over 200,000 potential angel investors that annually invest approximately $3 billion in US businesses and currently own over $12 billion in existing equity. This represents roughly 7% of what the banks are investing. Statistics also show that this figure trumps that of venture capital lending. The US labor market and productivity centre estimates that angel investments have financed approximately twice as many firms as any other form of external equity investment, including institutional venture capital.

Who is a typical Angel Investor?
Angel investors are often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. These include wanting to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs, and making use of their experience and networks on a less-than-full-time basis. Thus, in addition to funds, angel investors can often provide valuable management advice and important contacts.

What is the difference between an Angel Investor and a Venture Capital firm?
Angels make their own decisions as opposed to a board or group of people making a decision for investors that have pooled money together. Angels tend to be more involved in the businesses that they invest in and provide assistance in ways that venture capital firms do not. Angels typically do not own as large a stake in the company as a venture capital firm would. Another benefit of being an angel investor is the reception of certain tax incentives from investing in US controlled small businesses.

How do I know if my proposal has been received?
You will know that your proposal has been received if it appears in the list of "Active Proposals" in your member's area. If there are no proposals in your member's area then you will need to resubmit your proposal. Always write your proposal in another programme and cut and paste to avoid the page timing out.

How much does it cost?
You have two payment options: The Investor Referral Fee and The Premium Service Fee. More information can be found on Our Rates Page. Please note there are no further fees or commissions to be paid.

Why isn’t it free of charge?
Many people have asked us why we charge entrepreneurs for the service. Firstly we are running a commercial enterprise and don’t get any public funding, so we need to cover our admin and promotion costs, pay staff to check your submission and pay for the upkeep of the website. Secondly we are providing a valuable service to the entrepreneurs who need the much needed to support to get their ideas in front of investors. To set up a serious business with outside funding you do need to be prepared to spend some money. The fee is very low compared to other companies in the industry who will often charge around 5% of the amount you wish to borrow.

Do I have to pay for every contact?
No, both the Investor Referral Fee and The Premium Service Fee give you to access to the contact details of ALL the investors who wish to contact you. Your proposal remains active for 90 days and all investor contacts are included in this period. You do not need to pay for each contact.

Why don’t you take a success fee instead?
If you think of Angel Investment Network as the funding equivalent of an online dating agency it makes more sense. You wouldn’t expect a dating agency to only get paid if and when you marry the partner you found on their site. They wouldn’t be able to find you or know you were getting married without employing a private detective! Likewise we can’t hope to individually track everyone who enters their idea over the internet. Often all we have is an email address for you. Plus we have no control over how good your idea is and therefore your likelihood of finding an Angel. There may be a few Angel groups who don’t charge upfront, but they heavily screen incoming ideas and reject about 90% of them, which means most people are left without a chance of connecting with Angels.

How do I pay the Premium Service Fee?
First you have to submit an investment proposal. After you save your proposal you will be directed to your member’s area. There will be a link above your proposal to pay the Premium Service Fee via credit/debit card or PayPal.

Why isn’t my proposal appearing in the list of recent proposals?
If you have just submitted your proposal, it is probably because we haven’t approved it yet. We have to read and activate each proposal before it is released to the investors. Alternatively it may be because you have just edited your proposal, which means that it is removed from the system until we reapprove it.

Does my company have to be established?
No, we accept projects at every stage of development – from ideas to start-up companies to mature businesses. Even if your project is still an idea, it could still be of interest to the investors. They might even have the relevant knowhow and expertise to get the ball rolling.

Is there a maximum/minimum investment?
No, our investors are interested in projects ranging from a few thousand dollars to millions of dollars.

Are the contact requests automated?
No, all the contact requests you receive are from investors who have read your investment proposal and decided they want to discuss your project in more detail.

Who are the investors on this website?
The investors on our website have been compiled from databases of angel investors, company directors and private investment groups. They also include individual investors who have registered in the hope of finding investment opportunities. Our database is continually expanding with new investors looking to invest in companies like yours.

How much information should I include in my proposal?
If you are worried about confidentiality we would advise you not to give away too many details in your proposal. Try and write enough to get the investors interested in your project without revealing the key ideas. After you pay the Referral Fee or Premium Service Fee we will give you a free NDA document, which you can get all the potential investors to sign before presenting your idea in full.

How is my privacy protected?
The site was developed using proprietary database management tools and a secure server is used to assure that no one sees your business or personal information. Your information is not offered to any third party for any purposes and is guaranteed to be kept confidential and private.

Why should I use this service?
As an entrepreneur, you are already aware of the growing resistance of banks in the US to finance small business. It is virtually impossible to obtain financing without having secured assets, providing personal guarantees etc. Angel investors are the logical source to provide financing to small businesses. With $1 billion invested annually in the US and growing all the time, the main obstacle is locating and presenting your idea to this large group of investors. The Midwest Investment Network allows an entrepreneur to:
a) Find a source of capital.
b) Find an experienced investor that can provide guidance and support.
c) Make it all come together in a fast and efficient way.

How will I attract the attention of potential investors?
When dealing with an angel investor, at the very least your proposal should address the following:
- How much money do you need?
- Why do you need it?
- When do you need it?
- What are you willing to give up to get it?
- When and how can you pay it back?
Investors need your answers to these questions before they will even consider helping you. They are not looking for "pipe dreams" or unprofessional sounding proposals. They expect a reasonably sound business plan as well as an understanding from entrepreneurs that an investor is not going to just blindly hand over significant sums of money with no strings attached whatsoever. They may be angels but there are limits to what they are prepared to do.

How can I pay if I don't have a credit card?
If you are unable to or feel uncomfortable using a credit card, you can pay by PayPal, MoneyBookers or bank transfer. If you want to pay by PayPal there is a link above your proposal. If you want to pay by MoneyBookers or bank transfer, send us an email and we will give you our account details.

Why am I being asked to pay again?
You have to pay the Referral Fee or Premium Service Fee for every proposal you submit.

Due Diligence
Please be aware that after the initial match has been made it is the entrepreneur’s responsibility to carry out diligence on the investor. Please inform us of any suspicious behaviour.

I have other questions. Who do I contact?
Contact us by email: admin@midwestinvestmentnetwork.com

United States > Florida

$500,000 to $2,000,000

July 29, 2010

Private investor, seeking greentech companies with a track record and growth potential.

United States > Missouri

$10,000 to $100,000

July 29, 2010

US investor with new preference to Midwest companies.

United States > Ohio

$1,000 to $50,000

July 27, 2010

Ohio based business growth strategist, investor and change-agent. Wisconsin alum; Married; mid-40's; Christian. Looking for investment, advisory and possibly hands-on opportunities with passionate, socially-conscious entrepreneurs or investor groups who are interested in expanding and growing their businesses to impact the world in ways beyond just commerce. Strong cross-functional, cross-industry experience & generalist business skills gleaned from small biz start-ups to the merger and integration of several large corporate acquisitions. Particular expertise in market strategy and execution, establishing strategic alliances, sales growth and messaging. Currently own 3 businesses and am in process of starting a not-for-profit. Primary business is a 4-state region (OH, IN, MN, WI) of a global business coaching company. Well connected throughout my region, nationally and internationally.

United States > Florida

$100,000 to $1,500,000

July 24, 2010

Accredited investor, business owner located in South Florida. Particular interest in recycling green tech areas.

United States > New York

$50,000 to $5,000,000

July 24, 2010

I am a middle market private equity investor with 10 years of private equity, corporate finance, and corporate strategy/development experience. I have an MBA from Wharton and am a CFA Charterholder. I am looking for personal (i.e. separate from my PE firm) investment opportunities in small, existing, proven businesses that I believe have the potential to achieve substantial growth (and, in 3-5 years, be sold to a PE firm like the one I work for or to another acquirer). I have significant experience helping companies develop and execute growth strategies, and I have existing relationships with a number of lenders and advisors/consultants who are proven at helping smaller companies grow and succeed. I am primarily focused on companies that have existing managers (or where managers can be recruited) to run the company on a day-to-day basis, while I provide Board-level advice/guidance/support. For the right opportunity, I would consider taking on a full-time leadership role.

United States > Florida

$10,000 to $100,000

July 20, 2010

Investor looking to invest in existing service and retail businesses looking to expand through acquisitions or branching out.

United States > Illinois

$5,000 to $20,000

July 19, 2010

Private investor Interested in new ideas for investment.

Australia > Sydney

$250,000 to $1,000,000

July 15, 2010

Company principals have deep experience in strategic advice working primarily to expand concepts using innovative expansion straegies.

United States > Ohio

$10,000 to $150,000

July 15, 2010

I am formerly the CIO of an international network of laboratories. I am looking for investment opportunities and cooperative arrangements that are compatible with some of my current investments. In certain partnerships, I would be willing to consider a senior management role along with equity participation.

United States > Ohio

$50,000 to $2,000,000

July 14, 2010

Ohio based, retired 43 year old serial entrepreneur and individual investor looking for investment opportunities in new / existing product or technology start-up and/or growing businesses. Past experience includes start-up / acquisition of more than 10 businesses including contract manufacturing, design & build automation equipment, engineering services business, MRO supplies distribution, Speciality capital equipment & software and more. Management experience includes sales, marketing, operations. Professional resume includes Senior Commodities Buyer for $ 800M Electrical Distributor, Director of Purchasing & Materials Management for $ 50M Can Making Equipment OEM, President for 10+ personally owned businesses and most recently, President of a large multi-national equipment and software manufacturer wtih offices in 38 countries. Looking for dynamic opportunity. Candidates must demostrate that they have done their homework before presenting their concept.

United States > Pennsylvania

$10,000 to $500,000

July 10, 2010

I am a retired 53 year old business executive with an engineering and manufacturing background. I was president and CEO of an engineering intensive manufacturing company based in southeastern Pennsylvania. I also have extensive startup experience and manufacturing contacts both domestically and in China. In addition to funding I can offer engineering design, manufacturing and business experience. I am an individual investor and would expect to have a hands-on or advisory role in any investment made. My undergraduate degree is in mechanical engineering from Drexel University and I hold a graduate degree in business/engineering from the Wharton School at the University of Pennsylvania.

United States > Illinois

$50,000 to $500,000

July 7, 2010

I am a professional investor with 10 years experience on US market . I started as investment analyst. I was a successful broker of one of the largest futures trading companies . Now I am a CTA , owner of business .

United States > Georgia

$500,000 to $10,000,000

June 30, 2010

As a pure Finance house, we know what investors want from us: to help them achieve their investment objectives by delivering performance that meets their expectations. Every investment decision we take has a direct impact on our clients. That is why we have structured ourselves with empowered decision- making at the heart of our business. Our fund managers are organised into compact, nimble teams, able to take decisions . Decisions are taken in a considered way – mindful of the risks yet alive to the opportunities.

United States > California

$1,000,000 to $1,000,000,000

June 30, 2010

We are a boutique private investment firm managing companies that raise money for select real estate, hotel, casino, business, technology, energy, marine, and entertainment projects, worldwide, exclusively through direct private placement with our investors. The fund raising process is straight-forward, transparent, very low cost, and essentially risk-free. We presently have over a billion dollars of registered investor capacity.

United States > Florida

$500,000 to $5,000,000

June 29, 2010

Strong Investment International, LLC is Florida RE Investment Group with principals from Russia. As of today we have in our residential portfolio more then 50 Single Family Houses and Duplexes in Florida. All of them are like new 3-5 years only and are free & clear. We buy them directly from the banks, repair and are renting out. We also have in our portfolio some shopping plazas and self- storages. Currently we are looking for opportunities to build our ALF, Medical Buildings and Apartment Buildings portfolio in USA.

United States > Ohio

$2,500,000 to $12,500,000

June 26, 2010

I am married and located between Columbus and Dayton Ohio and I own rental properties and a high end Rural Estate Development. As a business owner I take a collaborative approach and remain involved every step of the way if needed. My skill set includes sales and marketing, small business start-ups from initial concept, logo design, business plan, marketing and sales. I am comfortable presenting and speaking to small groups or large audiences. I have excellent contacts across the US, an open mind and playful spirit. As an individual investor I am willing to discuss the role I might play according to the ideas presented. I can bring other investors if the idea "blows me away," and I prefer working with people who "think outside the box." Bring it on and lets make money.

United States > Illinois

$5,000 to $250,000

June 26, 2010

A financial and management consultant turned investor looking for growth and income. I have access to a group of 5 other investors if the opportunity matches what we are looking for.

Italy > Rhode Island

$25,000 to $150,000

June 24, 2010

I have been an Entrepreneur since the early 1990's. My field of experience began in the Manufacturing industry, and then moved into Property, and hospitality. I built my first hotel in Jakarta in 2005. Over the years, the Indonesian Government praised me with a few awards: "The Entrepreneur Award 2002" and "The Professional Award 2004". I am also a writer, and about to publish the first of my 2 books. I was married for 5 years, and then divorced in 2009, and my son is in my custody. As an individual investor, I am always driven to explore new opportunities, and I am always very strict on avoiding risk by making sure my investment is covered with some solid guarantees. Looking forward to producing some profitable denouements.

India > Bangalore

$500,000,000 to $1,200,000,000

June 22, 2010

Founded in 1992, Stone Arch Realtors is a 18 year old company in the Real estate business in Bangalore, India. It has made its mark by going beyond the conventional aim of selling apartments/township projects and has developed expansion plans to pick up projects in other states in India and even in other international countries. Good proposals on Residential project are welcome for our consideration.

United States > Missouri

$10,000 to $200,000

June 18, 2010

J.D. Harvard Law School '89, B.S Mechanical Engineering SMU '86. Started, owned and operated several small businesses over last 20 years. Individual investor looking to help other entrepreneurs with great ideas and work ethics meet their potential while making a solid return on my investment.