Welcome to the 🪽⚡AngelSpark FAQ. This is a living document which seeks to answer questions for new and existing members about every aspect of operations and governance of our community investment initiative.
Interested in becoming a member? Read through the FAQ and apply to join!
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🪽⚡AngelSpark is a community-run angel investment group, focused on bridging the gap between the founder and executive communities of the UAE. While we are stage and geography agnostic in our mandate, our mission is to create the definitive member-led investment community in the region.
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This section seeks to cover all governance related questions as it pertains to the administration of our organization.
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- 🪽⚡AngelSpark is administered by a Board of Directors.
- The Board exercises administrative control via Board Shares that have 0 economic value.
- All Board members purchased Member Shares.
- Board members make a commitment to operate the entity and lead the organization without any direct or indirect compensation from 🪽⚡AngelSpark
- If a member of the Board is no longer able to provide operational support (moving to another country, etc), their share will be offered to another through an orderly process.
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- Initial membership is capped to 99 individual shareholders. Shares must be held directly by members. Exceptions will be made on a case-by-case basis for family trusts.
- The Board may elect to sell additional shares at a later date. Any such shares will carry a premium based on NAV, overall demand, and market conditions.
- All members, including the Board, must purchase Member Shares at USD$50,000 per member in order to participate in the organization.
- All Member Shares have equal weight that represent each individual member’s pro-rata ownership of the dividends of the organization in a liquidity event.
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- Investment Committee (IC). Investment decision are made by the IC, which is made up of the Board + Elected members from the membership pool totaling 11 individuals. Non-Board IC members are elected quarterly. At least 7 IC members must be present at a meeting to call a quorum.
- Selection Committee (SC). Companies enter the pitch queue via Member Sponsorship. Companies can elect to seek out members to sponsor them directly or apply on the website. The SC will meet periodically to review qualified applications and propose Members for sponsorship.
- It is the expectation that members want to actively participate in the committee process and are encouraged to volunteer.
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- Your commitment of USD$50,000 purchases your economic interest in the outcomes of 🪽⚡AngelSpark investments.
- 🪽⚡AngelSpark will host monthly SC and IC events, attendance to which is limited to members and guests approved by the Board.
- Access to the 🪽⚡AngelSpark CRM to give you an opportunity to meet members, founders, and other members of our community.
- An opportunity to make a positive impact on the entrepreneurship community in the UAE and the region.
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- Members are expected to actively participate in Selection and Investment Committees.
- Members are expected to proactively propose startups for investment.
- All members are asked to allocate time, resources, knowledge, and connections to furthering the success of entrepreneurs that we invest in. All founders will be given access to the member database and members are expected to reply to founder requests in a timely manner.
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- 🪽⚡AngelSpark does not tolerate unethical behavior of any kind. The Board can elect to remove members from events and further communication at its sole discretion if a member is found to be engaging in behavior which the Board finds objectionable. This includes but not limited to:
- Discrimination of any kind.
- Inappropriate advances to founders or members
- Solicitation from our founders for any kind of advisory services. Your advice comes free by way of your investment.
- Representing the organization to third parties in any way that might cause harm to our mission of supporting founders.
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- 🪽⚡AngelSpark will have requisite social media profiles to build its online presence and create an active funnel for deals.
- It is the expectation that members list 🪽⚡AngelSpark on their LinkedIn.
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- The Board will organize periodic events for the SC and IC to meet with prospective founders to hear their pitch, conduct Q&A, and make investment decisions.
- Events will be held in Dubai and Abu Dhabi
- Announcements about upcoming events will be made over WhatsApp and Email.
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- Founders will be able to apply for an investment at AngelSpark.net
- All deals, even member sponsored, should fill out the website form.
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- Members are encouraged to sponsor companies. Sponsored companies will have priority Selection Committee review.
- Members are expected to be present during the sponsored company’s pitch at an IC event.
- Members are expected to coach sponsored founders to increase their chances of investment.
- Members are expected to answer questions from other members about their conviction on the investment.
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- It is understood that our community are active in the investment community outside of their membership in 🪽⚡AngelSpark.
- Members are invited to sponsor companies they are affiliated with (employment, investment, etc) as long as they clearly disclose the conflict to the community.
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- 🪽⚡AngelSpark is incorporated as a Delaware LLC.
- Members purchase their Membership Interest from the company.
- If required, you will be supplied with a Form K1 for your tax filing purposes.
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- 🪽⚡AngelSpark is incorporated as a Delaware LLC. US LLCs are pass-through legal vehicles and pass through their tax liabilities or carried losses to their members. Most non US citizens will not have a filing obligation. Please consult your tax advisor about your particular situation.
- As a Delaware entity, 🪽⚡AngelSpark will have certain filing obligations with various authorities in the US and potentially other jurisdictions. All such filings will be logged and made available for review to members.
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🪽⚡AngelSpark is administered through Notion, WhatsApp, Email, and Airtable
- You will receive access to member resources, IC prep, IC minutes, SC pipeline, general documentation, and other sundries.
- Community announcements, discussions, and quick decisions will be done via WhatsApp. In an event where community consensus is not reached OR participation is deemed too low, the Board reserves the right to make any decisions on behalf of the community.
- You will receive periodic emails about community events, governance proposals, company highlights, and other sundries.
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