FREQUENTLY ASKED QUESTIONS

What is Space Angels?

Space Angels is an investment platform for accredited investors, offering institutional insights and first-line access to sophisticated investment opportunities across diverse market segments, with the expertise to cultivate strong returns on investment. 

Space Angels’ world-class platform allows accredited investors to invest in compelling companies at the intersection of space and technology. Members are able to browse, evaluate, fund, and monitor investments from one platform. Our members benefit from Space Angels’ market leadership, proven track record, and pooled capital to deliver unique deal access and competitive terms. We work with best-in-class service providers including Ultimus Leverpoint, DLA Piper, and Silicon Valley Bank to deliver institutional-quality reporting.

Our model brings an unprecedented level of sophistication to angel investing and unparalleled choice and alignment with our fund investors. We are focused on outcomes and cultivating the greatest return on investment.

How do I start investing with Space Angels?

Membership in Space Angels is limited to accredited investors. You can apply for membership via our online application. Once submitted, your application will be reviewed by our membership committee and you can expect a response within five business days. If additional information is needed, you will be invited for an interview with the membership committee. If membership is affirmed, you will receive a link to access the investment platform, where you can browse current and past investments, review due diligence materials, click the invest button to easily sign e-docs and fund investments online, review your portfolio performance, and earn points through our unique ASCEND rewards program.

What are the benefits of membership?

Space Angels provides access to expertly-vetted and highly-curated investment opportunities, professional and comprehensive due diligence, streamlined documents, and an online closing process.

We are aligned with our investor members, focused on investment outcomes. Specialized funds with pre-vetted deals offer more choice for investors, no idle commitments, and stronger returns. Our thematic focus and domain expertise provide value to entrepreneurs and result in better deal management and ultimately an enhanced ROI for investors. As venture investors we are focused on curating the best deal flow, with the most opportunity for growth.

What are the fees associated with fund deals?

We verify that startups are investment-ready through an investment selection and coaching process that ranges from two months to two years, and then present them to members. We negotiate preference shares, which often include favorable terms as well as board seats on the companies we invest in, and this allows us to leverage the value of our extensive network to cultivate stellar returns on investment.

In exchange for these services, as further described in the operating agreement for the fund, Space Angels receives compensation equal to 20% of profits. An annual management fee of 2% will be paid to Space Angels for the first four years, tapering off in later years. These management fees will be refunded to investors prior to receiving any carried interest. Fund costs such as mandatory state and SEC filing fees, K-1 tax form preparation, banking costs, setup and exit costs are borne by the fund. Space Angels is not a broker/dealer and does not take any success fees or commission.

Is Space Angels a licenced broker-dealer?

Space Angels is exempt from Broker/Dealer registration under the JOBS Act Title II conditions including:

  1. We receive no compensation in connection with the purchase or sale of securities; and
  2. We do not have possession of customer funds or securities in connection with the purchase or sale of the security.

Under the exemption, we may maintain a platform that permits the offer, sale, purchase, or negotiation of securities, and are permitted to carry out solicitation, advertisements, or similar activities by issuers of the securities, both online (including social media), in person, and through other means.

The exemption is a narrow one intended to assist angel investors to connect with startup companies by removing the uncertainty of broker-dealer registration faced by online investment intermediaries.

How to access Space Angels members platform?

You can access the Space Platform platform on any device and is optimized for desktop, mobile, and tablet experiences using any browser.

What is the admission process for potential Space Angels members?

1.    Completion of a membership application.

       To apply, you must be:  

       o   An accredited investor, as defined by your home country.

       o   Satisfaction of accredited and/or qualified member status as defined by both U.S. and local jurisdiction for members outside the United States. “Accredited investor” is as defined by SEC Regulation D (17 CFR § 230.501), which in general states that an“accredited investor” is any natural person who alone, or jointly with a spouse has a net worth exceeding $1 million (excluding the net worth of his/her primary residence) or has individual income over $200,000 in each of the two most recent years, or jointly with a spouse has income over $300,000 in those two years, provided there is a reasonable expectation of reaching that level in the current year. For entities, please see Rule 501 of Regulation D for applicable requirements.

       o   Intend to invest on behalf of yourself or a family portfolio

       o   Are not affiliated with an aerospace company

2.    Review by the membership committee of corroborating information, which may be as simple as a review of online information (LinkedIn, company bio, etc.). Or in the case where such information is not available, or if further background review is deemed necessary by the membership committee, an interview may be required.

3.    Once the review is complete and approved, members are accepted into Space Angels and are granted access to the platform.

If you have any questions about your status or rejection, please contact info@spaceangels.com.

How do I become and accredited investor?

To be an accredited investor, a person must have an annual income exceeding $200,000, or $300,000 for joint income, for the last two years, with expectation of earning the same or higher income in the current year. In the United States, the definition of accredited investor is put forth by SEC in Rule 501 of Regulation D

A person is also considered an accredited investor if their net worth exceeds $1 million, either individually or jointly with their spouse. A general partner, executive officer, director or a related combination thereof for the issuer of unregistered securities is also considered to be an accredited investor by the SEC.

An entity is an accredited investor if it is a private business development organization or company with assets exceeding $5 million. If an entity also consists of equity owners who are accredited investors, the entity itself is considered an accredited investor.

An accredited investor can also be a registered broker or investment advisor. Additionally, if a person possesses sufficient education or job experience showing their professional knowledge of unregistered securities, they can qualify to be considered an accredited investor.

There is no formal process, form or application to secure the title of accredited investor. Instead, we take a number of steps in order to verify your status according to the SEC rule before your Space Angels membership is confirmed.

What is the ASCEND Program?

The Space Angels ASCEND Program rewards members for their activity both on and off the platform. Points can be earned in a number of ways, including investing, attending events and participating in investor calls. As you earn points and gain status, your access and opportunities grow.  Points earned will change your status and will give you preferred access to personalized insights and special investment opportunities. Points never expire and you can use them for investing, whether through lowering your investment minimum or discounting the carry fee.

A full explanation of the different tiers and how to earn can be found on the ASCEND page. Similar to travel rewards programs, points earned in the current calendar year will count towards your status both in the current and the following year.  However, to maintain your status in the following year, you must earn the points associated with that tier otherwise you will return to the Cadet membership tier.

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