Jumpstart believes that wealth creation starts with a strong relationship between the angel investor and the entrepreneur. All Jumpstart angels invest personally in a company. In other words, Jumpstart angels do not pool funds to invest as a group. The result is a strong, personal bond between angels and entrepreneurs.
HOW MUCH INVESTMENT CAN I EXPECT FROM JUMPSTART?
Jumpstart usually invests from $200,000 up to $1,000,000. If you need more, Jumpstart may syndicate the deal with other angel groups to raise up to $2 million. If you need more than $2 million, you should seek out venture capitalists.
WHAT ABOUT VALUATION?
The current or pre-money value of your business is often the most difficult issue to resolve prior to closing the investment. The pre-money value determines how much of your business the angel investor owns after making the investment. If the pre-money valuation is $1 million and the angel investment amount is $500,000, the post-money valuation is $1.5 million of which the angels own a third.
WHAT IS THE JUMPSTART REVIEW PROCESS?
The screening committee meets monthly to review companies for invitations to present for funding. If there is sufficient interest, you will be invited to make a ten minute presentation followed by a ten minute Q&A at the monthly Jumpstart meeting. Most presentations do not result in a funding. However, your chances of success will improve dramatically if you are introduced to Jumpstart by a member angel.
WHAT KINDS OF BUSINESSES APPEAL TO JUMPSTART?
Jumpstart prefers businesses with proprietary technologies that have the potential to grow rapidly. Jumpstart will also consider companies that apply innovative and disruptive technologies to traditional businesses.
HOW DO I MEET JUMPSTART ANGELS?
Our partners organizations such as the New Jersey Technology Council (NJTC), NJEDA, Techlaunch sponsor events where you may meet a Jumpstart member.
WILL ANGELS HELP RUN MY BUSINESS?
Angels have different attitudes on getting involved in your business. Some angels are passive investors while others are mentors. A few angels will even help with the day-to-day management of your business. You need to find the angel that offers the capital and the level of involvement you need.