Space Angels is a global network for angel investors, offering insider access to the emerging private space industry and sophisticated investment opportunities across diverse market segments, with the expertise and network connections to cultivate stellar returns on investment. We are the largest community of space investors and entrepreneurs in the world.
Space Angels utilizes a novel online investment platform that allows accredited investors to invest in private aerospace companies through Space Angels managed funds. Our platform combines industry-standard venture funds, with an easy-to-use web-platform that allows members to browse and evaluate fund investment opportunities, view investment profiles and sign legal documents. Our investors have insider access to investment opportunities, valuable intelligence providing context and understanding, and the ability to build a diversified portfolio.
We offer a new model of early-stage investing, which brings an unprecedented level of sophistication to angel investing, and unparalleled choice and alignment with our fund investors. We are focused on investment outcomes and cultivating the greatest return on investment, just like our investor members.
Membership in Space Angels is limited to accredited and sophisticated investors. If you fit this description, 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 membership is affirmed, you will receive a link to sign the membership agreement before accessing our Investment Platform, where you can browse investments and review due diligence materials, click the invest button to easily sign e-docs and pay online, and review your portfolio on your Member Profile. You can also then stay engaged by checking the Insider Highlights for access to exclusive events and updates.
Space Angels provides truly unique access for individuals interested in the emerging private space industry, through exclusive events, company tours, and connections to the largest community of space investors and entrepreneurs in the world (our members have been behind some of the most exciting startups in the industry). We provide insider access to the best curated deals, professional and comprehensive due diligence, and streamlined documents and online closing process.
We are aligned with our investor members, focused on investment outcomes. Themed funds with preselected deals offers more choice for investors, no idle commitments, and better ROI. Our industry focus and domain expertise offers more value for entrepreneurs, better deal management, and ultimately enhanced ROI for investors. As truly Seed/Series A investors we are focused on curating the best early deal flow, with the most opportunity for growth.
When it comes to your personal investment portfolio, we know you have a number of investing options:
You could pay $1000-5000 in annual membership dues to be part of another angel investment group, but then you’re responsible for your own due diligence and legal documents, and you typically won’t have any preference, negotiating power, or be able to meet larger investment minimums set by companies.
If you’re able to meet the minimums, you could invest as a limited partner in a traditional venture capital fund and pay the industry standard 2/20 fee structure plus fund administrative costs. And while you would benefit from more sophisticated investments than typical angel investments, you would have no choice in the specific investments made by the managers. With Space Angels you choose which companies to invest in, and our preselected deals means no idle commitments generating fees, resulting in better ROI for you. Additionally, as venture capital funds grow ever larger they tend to invest in ever larger rounds. Space Angels remains truly Seed/Series A focused and consistently curates the best early deal flow, with the most opportunity for growth.
You could invest through any number of the new online venture capital platforms and pay 20-30% carried interest, but these are not value added investors. While they do provide deal discovery and access, they don’t provide ongoing support to the entrepreneurs. At Space Angels we earn our compensation. With our focus and domain expertise we provide more value for founders, better deal management, and ultimately greater ROI for investors.
You could invest through a crowdfunding site. Crowdfunding effectively utilizes technology to aggregate many small investments, which it invests through a special purpose vehicle, and for which it typically takes 20-30% carried interest. However, as this recent Forbes article points out, the crowd typically pays for its lack of sophistication through higher prices (valuation) and less preference.
With Space Angels you become a member of an industry-focused investor group, with the network and expertise to discover and curate insider access to the best deals. As a member, you are part of the largest community of space entrepreneurs and investors in the world, with access to market intelligence to give you context and understanding of your investment opportunities. Our pre-selected deals give you more choice of what you invest in and ensures no idle commitments. Because of our simple fee structure, our interests are aligned with our investors, to cultivate successful startups and deliver stellar returns on investment.
Space Angels is highly selective, and proactively curates only the best aerospace deal flow for members. The organization sources its deals through deep industry relationships. As the premier source of early-stage capital for aerospace startups, we receive hundreds of applications for funding each year. Of these, less than 5% have satisfied our rigorous investment criteria and been presented to members. All deals made available to members have gone through extensive due diligence and negotiation, with a term sheet in place. Our investments are made through a special purpose vehicle, established solely for the purpose of investing in a particular company.
By participating in industry and investor conferences each year, and maintaining relationships with industry partners, we have become the bar-none, go-to funding organization for early stage aerospace companies. We verify startups are investment-ready through an investment selection and coaching process that ranges from two months to over a year, and then present them to you. We negotiate preference shares, which often include favorable terms as well as board seats on the companies we invest in – this allow us to leverage the value of our network to cultivate stellar returns on investment.
In exchange for these services, as further described in the operating agreement for the fund, Space Angels will receive compensation equal to 20% of the increase in value, if any, of the investment calculated at the termination of the investment (i.e., carried interest). 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.
Space Angels is exempt from Broker/Dealer registration under the JOBS Act Title II conditions including:
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.
Space Angels members have been behind some of the most innovative startups in the private space industry. Our community of private astronauts, industry veterans, prolific space investors, and entrepreneurs with multiple successful space company exits under their belt, our members are some of the most experience and well-connected individuals in the private space industry. They are business and technical professionals who are affluent, influential, experienced, have strong personal and professional networks, and are excited to support startup founders and entrepreneurship.
Excessive time spent fundraising is disruptive to building a successful company as focus shifts from product and users to pitching; Space Angels enables the best entrepreneurs to raise value-added capital efficiently from a powerful network. Space Angels allows entrepreneurs to aggregate capital from up to 95 investors through one fund (only one shareholder on the cap table).
Space Angels also allows entrepreneurs to leverage the powerful network by facilitating contact with Space Angels investors – generally speaking, very experienced, connected, and influential individuals – for help (e.g., for business introductions and recruiting).
Unlike online fundraising platforms that take a percentage-based commission from startups or that charge startups a large flat fee, Space Angels does not charge startups money when it invests in them.
Although our process is thorough, we seek to preserve founders’ time and aim to close funding with less time investment than other options.
Excessive time spent fundraising is disruptive to building a successful company as focus shifts from building your business; Space Angels enables the best entrepreneurs to raise value-added capital efficiently from a powerful network. With a great application and a great business opportunity, the entire process from application to funding can take 4-6 weeks.
Space Angels does not charge entrepreneurs for taking our capital. Space Angels receives carried interest on its investments, which is a percentage of any profits from an investment. We believe this best aligns our incentives with those of both our investor members and our portfolio companies since we have a strong incentive to facilitate successful outcomes for all parties since without such outcomes, we are not compensated.
Entrepreneurs primarily interact with the Space Angels organization, but not with individual Space Angels members. This is designed to avoid redundancy and deliver an efficient fundraising process. Space Angels members decide to invest based on Space Angels' processes and the information made available in the secure online Investment Platform. In addition, Space Angels has a moderated Q&A process, aggregating questions from members (there are typically a number of common questions across members) and presenting them for answering in an efficient manner. Following the investment, Space Angels mediates updates for fund investors on company progress, comprised of information Space Angels receives from the company. In these updates, the companies are encouraged to also list ways fund investors can help (e.g., through introductions to potential hires, business partners, customers, etc).