Answer

Research on Funding Sources

This paper discusses Beacon Angles, which happens to be an Angel Group. The areas covered in the paper are who Beacon Angels are and the mission, areas Beacon Angels has invested in, the firm’s portfolio, the firm’s investment strategy, and methodology surrounding the firm’s investing. The paper then concludes by conducting due diligence on the firm.

Who Beacon Angels are and the Firm’s Mission

Beacon Angeles was established in 2006 and serves as a local angel agency or group that invests in projects whose finances range between $100,000 and $300, 000 (Built in Boston, 2018). Beacon Angels’ mission is to assist and share in the excellence of rapid-advancement startup firms (Beacon Angels n.d.a).

Areas in which Beacon Angels has Invested

Since its establishment, the firm has invested approximately $6,000,000 into novel England-based startups (Beacon Angels n.d.a). Beacon angels group has invested in the sectors of healthcare and health care technology, as well as telecommunication services (Beacon Angels n.d.). Currently, Beacon Angels boasts of eight investments within seven firms including GateRocket, Crimson Hexagon, and Pixability (Built in Boston, 2018).  In healthcare, the organization has invested in companies such as eCare Vault, Boston Heart Diagnostics, and Cognoptix (Beacon Angels n.d.b). In the health care technology, the group has invested in firms such as Chromis Fiberoptics, Good Technology, Concrete Sensors, and Spiro Technologies (Beacon Angels n.d.b). In the sector of telecommunication services, Beacon Angels has invested in companies such as Crimson Hexagon, Pixability, and The Search Agency (Beacon Angels n.d.b).

The Firm’s Portfolio

The organization’s portfolio is diversified and it takes into consideration firms involved in education, finance, healthcare, marketing healthcare services and products, and technology such as Chromis, iQuartic, Fiberoptics, Boston Heart Diagnostics, eCare Vault, and Crimson Hexagon (Beacon Angels n.d.b).

The Firm’s Investment Strategy

As aforementioned, Beacon Angels’ investment approach focuses on directing resources on ventures whose finances fall between $100,000 and $300, 000 (Built in Boston, 2018). In their investment approach, the organization targets small fast-growing firms.

Methodology Surrounding the Firm’s Investing

Prior to selecting any company for investing in, the group ensures that the company to be selected meets the following criteria (Beacon Angels n.d.c):

• Foreseeable exit approach
• Competitive hindrance to entry
• Substantial third-party buy-in, particularly from investors or customers
• Three million dollar or less pre-cash valuation desired
• Concise, compelling plan, prearranged documentation.
• Novel England firms only

Once the company has been established to meet the criteria above, the company is allowed to apply for investment. The firm’s application is then taken for screening by Beacon members. The screening of applications is often executed on third Tuesday of every month (Beacon Angels n.d.c). Companies whose applications have been approved are then invited for presentation of their cases for investment. Firms present their cases in 20 minutes followed by a 10-minute session for questions and answers (Beacon Angels n.d.c).  Once the presentation has been approved, the next stage focuses on the execution of due diligence on the firm whose case has been approved. This goal is accomplished by reviewing the firm’s proposal in a period of between 20 and 90 days (Beacon Angels n.d.c). The final stage involves the investment stage. Firms chosen for investment are required to plan on disbursing Beacon’s costs or expenses at the first closing and for any subsequent follow-on-rounds.

Due-Diligence on Beacons Angels

Considering the research executed on Beacons Angels, it is evident that the group qualifies as a good fit. The appropriateness of the group as a good fit is substantiated by the claims of the online press and media about the group. For instance, Built in Boston (2018) considers the group among the ten angel groups that every entrepreneur in Boston should know. The company’s areas of expertise in investments including healthcare equipment, software and services, telecommunication services, life sciences tools, health care technology, semiconductor equipment, and semiconductors among others are acknowledged by prominent media companies such as Bloomberg (Bloomberg, 2018).

Beacon Angels’ executive team comprises Mr. Michael S. Vitale, Mr. Leon Liebman, Mr. Don Burrer, Mr. Thomas H. Brantley J.D, and Mr William F. Swiggart J.D (Bloomberg, 2018). According to Beacons Angels (n.d.a), these members are accredited investors. As such, Beat Angels is reliable and authentic. Involving with Beacon Angles will not only benefit our business in terms of capital, but will also expose our business to a range of novel ideas and technologies associated with the companies in its portfolio. The buy-ins from the group’s accredited investors will contribute largely to moving our business to higher levels of competition in the market.

In conclusion, this paper has effectively discussed Beacon Angels as an angle group. The areas covered in the paper are introduction of Beacon Angels are and the group’s mission, the group’s areas of investment, the firm’s portfolio, investment approach, and methodology associated with its investing. The paper has also conducted due diligence on the firm, and established that it is a good-fit, reliable, and authentic.