Navigating Wharton Alumni Angels Investment Criteria

The Wharton Angel Network (WAN) offers a platform for Wharton alumni entrepreneurs seeking funding and Wharton alumni investors interested in early-stage deals. Founded in 2007, the WAN aims to create a transparent environment for angel investing, typically characterized by individual investors providing capital to ventures in their formative stages, enabling them to bring their products or services to market. This article will explore the investment criteria and processes associated with the Wharton Angel Network, providing a comprehensive guide for both entrepreneurs and investors.

Understanding the Wharton Angel Network

The Wharton Angel Network's primary mission is to connect Wharton alumni with innovative company ideas. It is important to note that the WAN facilitates introductions and does not offer investment recommendations or guidance on the investment process. Entrepreneurs and investors are expected to connect and follow up independently. All business plans submitted originate from management teams that include a Wharton alumnus or are sponsored by a Wharton alumnus who is a member in good standing of the Wharton Club of New York (WCNY).

Who Can Join WAN?

WAN membership is open to Wharton alumni involved in angel investing and the early-stage investment community. This includes angel investors, members of angel networks, venture capital firms, private equity investors, and other early-stage investors. Investor members should be capable of making investments in early-stage companies. There is no initiation fee to join the Wharton Angel Network.

Benefits of WAN Membership

As a member of the Wharton Angel Network, you gain access to several key benefits:

Deal Flow Access: Exposure to early-stage investment opportunities within the Wharton alumni community.
Showcase Event Invitations: Invitations to exclusive showcase events where you can meet entrepreneurs and discuss their business plans in person. These events feature a curated selection of entrepreneurs. WAN members pay $20 to RSVP for each event.
Networking Opportunities: Potential for an annual event to connect with fellow WAN members and exchange insights on presented business plans and management teams.

Benefits for Entrepreneurs

Entrepreneurs who meet the submission requirements can benefit from the WAN by:

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Exposure to Investors: Presenting their business plan to a large and growing network of Wharton alumni investors.
Showcase Event Participation: If selected, the opportunity to meet and discuss their business with angel investors at showcase events. The cost for selected entrepreneurs to attend is $20 per team.

Funding Process and Criteria

The Wharton Angel Network facilitates connections, but the funding process is managed independently between entrepreneurs and investors.

Funding Amounts

There is no maximum funding amount that entrepreneurs can apply for through the WAN. However, the network focuses on angel funding, which typically precedes institutional financing. Angel rounds often represent a company's first round of funding or follow a "friends and family" round. This type of funding is commonly raised at the pre-revenue stage or during a company's initial revenue-generating stages. These characteristics are considered during the review process.

Showcase Events

Showcase events are invitation-only gatherings where WAN angel members meet with entrepreneurs. These events are held several times a year and feature a showcase fair format. Each selected company is provided with a dedicated space to present their business, and Wharton alumni angel investors can engage with the management teams. Entrepreneurs are responsible for bringing their own presentation materials.

Showcase Event Logistics

Entrepreneurs invited to a showcase event should be prepared to discuss their business plan fluently and answer investor questions. While tables are provided, entrepreneurs must bring all necessary materials, including presentation copies. They are welcome to bring product prototypes and business cards, ensuring that all materials fit comfortably within the provided table space.

Showcase Event Screening Process

The selection of business plans for showcase events considers various factors, including the general interest of the WAN membership and specific industries of interest. While the likelihood of selection varies based on the number of submissions, historically, the selection rate falls in the low to mid-two digits for each event. Typically, each event features between 4 and 7 entrepreneurial teams.

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Notification Timeline

Entrepreneurs will be notified of their selection status a week to a few days before the showcase event. Entrepreneurs should hold the date and time until they receive notification. The timing allows entrepreneurs to submit their plans up to approximately one week before each event, with specific deadlines outlined in the event postings.

Feedback and Reapplication

If a business plan meets all submission requirements, it will be circulated to all WAN investors, regardless of showcase selection. However, no additional feedback is provided. Common reasons for business plans not meeting submission requirements include seeking funding beyond the WAN's definition of angel funding or incomplete plans lacking information about the management team or product. Entrepreneurs are welcome to reapply for future showcase events but must resubmit their plan before each event.

Eligibility and Application Process

To participate in the Wharton Angel Network, both investors and entrepreneurs must meet specific eligibility requirements and follow the application process.

Investor Eligibility

To become a WAN member as an investor, you must:

Be an accredited investor.
Be a member in good standing with the Wharton Club of New York (WCNY).
Be interested in investing in angel-stage companies.

Investor Application Process

To apply as an investor:

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Send an email to the Wharton Angel Network with the subject "INVESTOR APPLICATION."
Include your name and a statement confirming your membership in the WCNY.

Once your eligibility is confirmed, you will receive a link to the investor application form.

Entrepreneur Eligibility

To submit a business plan to the WAN, you must meet the following criteria:

The management team must include a Wharton alumnus or be introduced (sponsored) by a Wharton alumnus.
The alumnus must be a member in good standing of the WCNY.
The business must be seeking angel funding.
The business plan must be for an actual business rather than other types of ventures (e.g., financial services memberships or promotional materials).

Entrepreneur Application Process

To submit a business plan:

Ensure that your team meets the eligibility requirements.
Disclose the name of the sponsor and any intermediaries involved.
Apply to become an investor member to receive a link to the business plan submission form.

Data Privacy and Usage

The Wharton Angel Network and its affiliates, such as Global Venture 100 Limited t/a Qodeo, handle personal data in accordance with data protection laws. This includes information provided during registration, participation in discussions, and reporting issues with the site.

Data Collection and Usage

Personal data is used for various purposes, including:

Providing information about goods or services of interest.
Allowing selected third parties to provide information about relevant goods or services (with consent).
Selecting and serving relevant advertisements.
Optimizing user experience on the site.
Administering and protecting the business and site.

Data Storage and Security

Data may be transferred to and stored at destinations outside the European Economic Area (EEA). All information is stored on secure servers with SSL technology. Payment transactions are encrypted and processed by PCID compliant payment engines/gateways. While efforts are made to protect personal data, the transmission of information over the internet is not completely secure.

Data Retention and Rights

Personal data is retained only as long as necessary to fulfill the purposes for which it was collected, including legal and reporting requirements. Users have the right to:

Access their personal information.
Request correction of their personal information.
Request erasure of their personal information.
Object to the processing of their personal information.
Request the restriction of processing of their personal information.
Withdraw consent for specific processing (where consent has been provided).

Visibility Settings

Users can change the visibility settings for their data posted online, restricting access to some or all users.

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