Investor FAQ
I just signed up as an Investor but am I registered? If you are having any problems. Simply send an email through our CONTACT US online email form to let us know. Clearly identify your full name, network and explain that you are having an "Investor Registration Problem". Who are the Entrepreneurs? Existing California (small to medium size) business owners as well as start-ups involved in a diverse range of businesses. Opportunities presented here include everything from manufacturing companies to real estate opportunities and everything in between. Generally, these entrepreneurs have exhausted traditional lending sources and their own private equity sources and must look for ways to bring in outside sources of capital for growth (ie.angel investors).They are often too small to be eligible for venture capital funding and/or have business models that don't interest traditional bankers. Many of the entrepreneurs found here are proficient in their particular field of expertise but may be more inexperienced in the realm of finance so an extra dose of patience and understanding may be required.
Who is the California Investment Network? The California Investment Network is California’s premiere matching service for entrepreneurs (looking for growth capital) and angel investors (looking for investments). Created by a committed group of professionals formerly involved in business acquisition consulting, information technology and various start-ups, the creative concept and foundation of this network was developed to take California business to the next level. The California Investment Network is continually growing, developing and updating it’s database of qualified angel investors. How much can I expect to make for a return on my investment? This is very dependent on the situation, size of investment, size of company, industry trends, etc. However, it is estimated that many angel investment returns in California small businesses and start-ups have been in the range of 20-40% return on investment (ROI). Some prove to be less but they are sometimes much, much more. How is this different from venture capital funding? Generally, angel investors do not invest in deals greater than $1 million whereas venture capital firms typically are not looking at deals under this amount. As an angel, you make your own decisions as opposed to a board or group of people representing investors that have pooled their money. Entrepreneurs often expect that you may be more involved in the business and may provide assistance in ways that venture capital firms do not. You also do not typically 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 for investing in American small businesses.
How does this service work? As an angel investor, you first register as a member on the site for no fee and identify your basic investment preferences. Entrepreneurs continually submit their investment opportunities, each of which are filtered for review based on your pre-selected criteria. At the time of registration, the summaries of all relevant existing opportunities are e-mailed to you immediately. This could number in the hundreds or be much fewer, depending on how wide you set your selection preferences. Each email includes a link to our website that allows you to view further details of any opportunity that interests you and to initiate contact with the corresponding entrepeneur if you choose to do so. If the entrepreneur subsequently chooses to respond, you will be notified via your preferred contact method (email, phone etc.). At that point, you can then decide whether you wish to review the entire business plan and possibly even initiate the process of investing in the business.
All ongoing new opportunities are made available to you using the same methodology as soon as they are created for as long as you maintain your membership with us. Our website also includes your own investor section which keeps track of all your own opportunities in an orderly, convenient fashion.
It is strictly a matching service that offers quality opportunities to investors submitted by serious entrepreneurs. What are the costs? The California Investment Network will not be initially charging any fees to accredited angel investors to use this service. There are no hidden or additional charges of any sort. The entrepreneurs are charged a one-time fee to receive interested contact information from angel investors.
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 has access to your business or personal information. Your information is not offered to any third party for other purposes and the information you enter into the website is guaranteed to be kept confidential and private. Why should I register to receive investment proposal summaries? Angel investors are the logical source to provide growth capital to small business. With over $40 billion invested annually in the US and growing all the time, the main obstacle is locating and identifying quality deals. The poorly performing stock markets, along with the growing resistance of investors to invest in companies they know little about, fuels the need for an alternative. The California Investment Network allows an angel investor to view many opportunities with the option to choose one that is a proper fit.
What are the favorable tax treatments in angel investing? Yes. Angel investing in small business opportunities are many. One such one is if any losses realized resulting from investments in startup companies that fall under Internal Revenue Code, Section 1244 (which defines "qualified small business tax treatment") are deductible against ordinary income taxes.
One-half of any gains realized from investing in "qualified small businesses", under section 1202 of the IRS code, if held for a specific period of time, can be excluded from capital gains tax.
Regardless of the holding period, any gains realized from a Section 1202 "qualified small business", qualifies for a 1045, tax free exchange into a new "qualified small business". (See your accountant for specific details.)
For further details on Angel Investing guidelines, please refer to Internal Revenue Service or Securities And Exchange Commission How do I get started? Simply enter the “Angel Investor” area and complete the basic registration steps. Once you press the submit button, you will have initiated the process that our unique software goes through to ensure that the best matches are made especially for you. I have other questions, who do I contact? Contact us by email: admin@californiainvestmentnetwork.com
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