Forgot your password?
New user?
Document Actions
FAQs
Q: What is the mission of Investors’ Circle?
Q: How does Investors’ Circle achieve this mission?
Q: How is IC different from other angel networks?
Q: How do investors measure their success?
Q: Who are the members?
Q: How much does membership cost?
Q: How do I become a member?
Q: Do I have to be actively investing in deals in order to be an IC member?
Q: What if I do not qualify as an IC member but want to support IC’s work?
Q: What is the balance between angel and institutional investors?
Q: What else do I get as a member?
Q: Why is it worth becoming a member when I can just come to the events and read the newsletter anyway?
Q: How many members does IC have in my local area?
Q: How many members are interested in each industry sector?
Q: How much money has been invested?
Q: What size investments do IC members make?
Q: Where can I send my investment ideas?
Q: What is the due diligence like for the companies that make it to the briefings circulation?
Q: What is the due diligence like for the companies that make it to the venture fair?
Q: What is the process after a venture fair, with the companiesWhy we are here
Q: What is the mission of Investors’ Circle?
A: The mission of Investors’ Circle is to a) catalyze the flow of capital to early stage companies that address major social and environmental problems and b) grow and support the network of patient capital investors. Patient capital investors recognize that the transition to sustainability requires more than investing in tomorrow’s breakthrough technologies and extraordinary growth companies. It requires supporting minority and women entrepreneurs. It requires investing in venture funds that target economically disadvantaged regions. It requires investing in companies that support organic agriculture and sustainable forestry. Patient capital includes, but is not limited to, venture capital. Patient capital prioritizes ERR (external rate of return) and optimizes IRR (internal rate of return). Patient capital recognizes that wealth now/philanthropy later is an inappropriate response to the challenges of the 21st century. Patient capital recognizes that the 20% IRR benchmark is crude, based on short term phenomena, and of little relevance to the social and environmental impacts which are our drivers.
Q: How does Investors’ Circle achieve this mission?
A: By bringing together investors and entrepreneurs in bi-annual venture fairs in Boston and San Francisco. By circulating each month an organized stream of investment opportunities, addressing a wide variety of social and environmental challenges. By getting press that these types of companies are out there. By cultivating thought leadership about patient capital. By putting the word out to entrepreneurs and their investors so that IC can be a source of capital for them. By incubating new financial instruments to make it easier to invest in these ventures.
Q: How is IC different from other angel networks?
A: IC is one of the oldest and largest angel investor networks in the country and the only one dedicated to accelerating the transition to a sustainable economy. From organic cotton consumer goods and inner city businesses, to environmental and medical technologies, to educational software and woman-owned businesses, no other angel group in the country is devoted specifically to sustainability.
Q: How do investors measure their success?
A: “We are here,” reflects one of IC’s most experienced venture capitalists, “because we are both.” The both he was referring to is IRR and ERR. While some investors choose to invest in companies that offer the potential for competitive financial returns, others are interested primarily in maximizing social/environmental returns. Essentially, different investors walk different paths in building their investment portfolios. Therefore, they have different opinions about how to measure success. Two IC investments that represent well the IRR/ERR spectrum are Sonic Innovations, which develops digital hearing aids and The Farmers Diner, which hopes to establish a chain of restaurants based on food bought from local farmers. To read an article about The Farmers Diner in the New York Times, click here. For more information about Sonic Innovations and for other past IC investments, click here.
Who we are
Q: Who are the members?
A: Members include high net worth individuals, venture capitalists, investment advisors, family office managers and foundation officers.
Q: How much does membership cost?
A: The annual fee for an individual membership is $1495 and the annual fee for an institutional membership is $1995 (which allows for up to three people on the membership). In addition, there is a one-time initiation fee of $1000.
Q: How do I become a member?
A: First, check to make sure that you are an “accredited investor”. See also our Membership Criteria. Second, download and complete the membership application.
Q: Do I have to be actively investing in deals in order to be an IC member?
A: We, as a community of investors, share abiding concerns and a sense of urgency to invest in ventures that are addressing environmental and social issues. Although there is no investment requirement, IC encourages members to invest in the companies that circulate and present at the venture fairs. Doing deals is important to continue the momentum that IC has created in the marketplace and adds value both to the companies and to our own investment process. To catalyze the flow of greater investment, several members are currently working to launch the Blue Dot Angel Collaborative, a pooled angel investment vehicle for IC members.
Q: What if I do not qualify as an IC member but want to support IC’s work?
A: You can make a tax-deductible donation to the IC Foundation, a designated 501(c)3 nonprofit. You can also sponsor our events and recommend companies and investors to us.
Q: What is the balance between angel and institutional investors?
A: Two-thirds of IC members are individual angel investors; the other third are institutional investors.
Q: What else do I get as a member?
Read our Benefits of Membership to see the full list.
Q: Why is it worth becoming a member when I can just come to the events and read the newsletter anyway?
A: You get to be part of a growing, nationwide movement to support the transition to a sustainable economy. You get to build personal as well as co-investment relationships at members-only gatherings. You get to be part of a community of investors who are looking out over the edge, working on new financial instruments, new corporate structures, and thinking about how to galvanize more capital into companies addressing social and environmental problems.
Q: How many members does IC have in my local area?
A: Please email Deb Parsons at dparsons@investorscircle.net for this information.
Q: How many members are interested in each industry sector?
A: Please email Deb Parsons at dparsons@investorscircle.net for this information.
What we do
Q: How much money has been invested?
A: Since 1992, Investors’ Circle has facilitated the flow of over $130 million into more than 200 private companies and small venture funds focusing on the following: energy/environment, food/organics, health/wellness, media/education, and community development. The sector breakdown of investments is found here.
Q: What size investments do IC members make?
A: The median investment is $60,000. However, checks written by IC members have ranged in size from $10,000 to $5 million.
Q: Where can I send my investment ideas?
A: Anyone can recommend companies by encouraging them to go to the “Entrepreneurs” link on the IC website. As a member of IC, you are allowed to circulate deals free of charge if you are already invested in the deal or if you are part of the management team.
Q: What is the due diligence like for the companies that make it to the briefings circulation?
A: IC staff review each application and work with the entrepreneurs to create a company profile. We offer feedback to each company that circulates on how best to present their information. Click here for details about the criteria for companies.
Q: What is the due diligence like for the companies that make it to the venture fair?
A: IC staff work with a selection committee (a group of IC investors) to review and rank all of the companies that have circulated in the past nine months. IC then requests business plans and other materials from the top half of the companies. Selection committee members review this information and interview the most compelling companies. The selection committee then recommends the top four to five companies to present in each track.
Q: What is the process after a venture fair, with the companies?
A: IC puts together a listserv for each company that has received investor interest. This online due diligence platform is a place for the investors to share their knowledge, interest levels, and general opinions about the quality of the companies and the quality of the investment opportunity. IC requests business plans and other relevant materials that are posted to these listservs. IC also offers to host conference calls if there is sufficient interest.