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The K-State Angel Investor Network (K-State Angels) is an informal, but organized network of accredited investors, who will be provided with potential opportunities to invest in early stage companies with high growth and profit potential. The pool of potential investments will include but not be limited to technology-based companies derived from research at Kansas State University.
Persons eligible to participate in the K-State Angels must be qualified as "accredited investors" according to SEC criteria. Generally, such individuals must have an individual or joint net worth of at least $1 million and/or individual income of $200,000 or joint income of $300,000 per year for each of the past two years, with a reasonable expectation of that income level continuing.
Coordination of the K-State Angels will be managed by the National Institute for Strategic Technology Acquisition and Commercialization (NISTAC), a not-for-profit joint venture of K-State, Kansas Technology Enterprise Corporation, and the City of Manhattan. Subject to later modification, the operations of the K-State Angels will be as follows:
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NISTAC will maintain the list of K-State Angels members on a confidential basis. No individual member name will be publicly disclosed without the permission of that individual and the list will not be provided to any other groups. Any company that presents a proposal to the network will be discouraged from engaging in unsolicited, direct follow-up with individual members.
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NISTAC will prescreen investment opportunities for presentation to K-State Angels according to pre-determined criteria. NISTAC will then arrange for formal or informal presentations to K-State Angels by the principals of companies seeking investment. K-State Angels members will be invited to attend these presentations at their individual discretion, or alternatively to receive copies of written business plans and/or offering summaries that will be forwarded for review upon request.
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At the conclusion of each presentation, each member will indicate to NISTAC his/her interest in obtaining more information. The desired information then will be provided directly to the member by the venture company or via NISTAC if the member wishes to preserve anonymity at that time. At the time the member decides to seriously pursue an investment, a direct dialogue between the member and the venture principals will be initiated. NISTAC then will no longer be involved in the process, and the individual member will conduct his/her own due diligence and make his/her independent decision on investment.
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If a member of K-State Angels completes an investment, the member should inform NISTAC of the amount of the investment. This information will be held in confidence by NISTAC, and used only for tracking purposes. Under any circumstances, it will be disclosed only in a pooled, aggregate form that does not reveal the identity of an individual investor and/or the specific amount of his/her investment.
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In the case of an oversubscribed offering, the venture company will have sole discretion on who may invest and how much.
At a later time, the concept of a pooled fund organized as a limited liability company with members drawn from the K-State Angels will be explored. However, there will be no obligation whatsoever for any K-State Angels member to participate in such a fund if organized.
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