Johnson Angel Investments, LLC is a venture capital firm that is focused on creating a portfolio of new age companies that represent the technologies of the future. Johnson Angel Investments, LLC (JAI) invest in companies that are based in the United States, which have products and services that are sold both locally and abroad. The companies should be well managed and their concepts well proven. Johnson Angel Investments, LLC will observe the following criteria before committing to invest.
First is the development Stage of a Business. Johnson Angel Investments, LLC will consider investing in a company that has a proven concept and which has demonstrated more than $ 100 000 a year in sales. JIA do not invest in the early stages of a business venture.
Secondly, JIA will check at management team. Johnson Angel Investments, LLC considers both the qualification, diversity and the depth of the management team. The management team should demonstrate a wealth of diverse skills that are crucial for making quality investment decisions.
Technology is another important consideration. Johnson Angel Investments, LLC considers the technological team of the company; how the team manages the Intellectual Property Rights and also the technological risks that are involved in the business venture.
Another important aspect is the exit strategy. Johnson Angel Investments, LLC is seriously concerned about the company’s exit strategy. The company should therefore be clear on the modality they would employ to exit the venture. Johnson Angel Investments, LLC will consider those companies that will employ Mergers and Acquisitions and, Initial Public Offers as their exit strategy.
Market is also significant. Johnson Angel Investments, LLC also considers the potential of the market that the company’s products and services targets. This will enable JIA to exit with investment of a higher valuation. Amongst the things that are top on our list include the size of the market, its access and potential for growth and the competition levels within the market. JIA also consider the mechanics of distribution that the company has set in place within the market and the stage at which the market has evolved.
Additionally financial considerations are very imperative In this section, Johnson Angel Investments, LLC considers four crucial components of the business venture. These includes how the funds to be invested; how they will be used by the company; the terms of financing; the risks involved in financing; and the potential of return on the investment.
JIA always strives to know where the management will direct the funds that they will be investing in their company. JIA is also interested in knowing if their money is used in further development of the potential of the business.
Secondly, JIA also provide the details of their financing terms in the term sheet, which they use to invite discussions upon during negotiations. JIA do not invest in the early stage of a business venture. Besides, Johnson Angel Investments, LLC is willing to invest in any business that requires more than $250,000 as long as other additional angels have also committed themselves to invest in the business concept. Additionally, they are willing to invest in a business idea that garners more than $ 100 000 each year in sales.
Thirdly, JIA also need to know the risk involved in the business venture, as projected by the company. Johnson Angel Investments, LLC will consider a company that has a good concept, high capital requirement, minimal risks and great upside.
Johnson Angel Investments, LLC will also consider a company that can promise an exit potential of high investment return. It will consider a company that has got a high Returns on Investment. JIA is targeting a ROI ratio of 355% annually.