What is Red Bear Angels?
Red Bear Angels is the group of angel investors & helpful individuals who invest in and support companies founded or led by Cornell University alumni, faculty, and students. We leverage the varied domain experts in our membership for every investment we make.
Red Bear Angel Group is led by Cornell alumni and is not officially sponsored or endorsed by Cornell University.
Who is involved?
Red Bear Angels is a group of 330+ people, most of whom are Cornell University’s particularly esteemed alums in the venture community who came together to double down on the entrepreneurial talent emerging from their alma mater.
RBA’s full-time Managing Director and part-time Cornell MBA Associates source, vet and facilitate all investments with the support of a hands-on Advisory Board.
How can I get involved in RBA, (and what do I get out of it)?
There are four ways to be involved:
What is RBA’s sector & stage focus?
We are sector and stage agnostic.
We have a talent thesis: We are capitalizing on the fact that Cornell University is home to the country’s best engineering program attached to the widest set of vocationally focused niches – from hospitality and agriculture to ergonomics and labor relations. And what better time to support this pool of talent than at the launch of the much-anticipated Cornell Tech campus.
We usually invest at the seed stage with an average check size of $250k.
What is your AUM/Committed capital?
RBA currently sources capital from our active and passive investor network on a deal-by-deal basis.
For Potential Investor Members
What are the requirements for joining RBA?
RBA offers a one-year membership to accredited investors at $2,000*, and includes access to deal flow, a professional diligence service, angel education events, and exclusive invitations to network initiatives with fellow alumni and venture investing hobbyists. RBA will accept accredited investors, regardless of affiliation to Cornell.
RBA also offers a Young Membership program with tiered pricing (based on graduation year) to younger alumni who are not necessarily in a place to make angel investments.
*The paid membership model will be enforced beginning July 2016.
What is the Young Membership program?
The Young Membership program is a vehicle for alumni to offer valuable industry insights and introductions to budding Cornell entrepreneurs.
Young Members receive invitations to all events and conversations to which Investor members or privy, with the exception of sensitive diligence and fundraising documents.
It is not expected that Young Members make any angel investments.
Membership is priced based on undergraduate year of convocation. Please inquire at firstname.lastname@example.org.
Who is on the Advisory Board?
The Advisory Board is comprised of 7 seasoned investment professionals and entrepreneurs who meet every two weeks with the Managing Director to advise on deal flow in a two-year term. www.rbangels.com/team
How are deals structured?
Red Bear Angels does not take a management fee, though the investment team realizes a 15% carried interest fee.
The membership fee does not go towards any investments. It is put entirely towards Red Bear Angels Management operating expenses.
Where do I sign up?
Email Meghan@RBAngels.com for a sampling of our deal flow, invite to the next pitch event, and more info.
What affiliation with Cornell is required for an investment to be considered?
Startups must have a founder, board member, executive, or investor that is a graduate, student, or faculty member of Cornell.
How long is RBA’s decision process?
What is RBA’s investment decision process?
Regardless of an investment, our pledge is to connect entrepreneurs with truly helpful people, so long as there is a clear strategic fit with someone in our membership and/or wider network. You may follow up at any time with updates on your company or your timing constraints, though please know if you haven’t heard back yet, it’s because we do not yet have someone who is the right fit.
Any tips for this process?
RBA’s investment decision process will take 6-8 weeks. Please feel free to share updates in that time with the Managing Director, but please do not reach out to Advisory Board members or RBA members directly during this time. We want to make sure all members are privy to the information and updates you share, and we cannot do that without a streamlined communication channel. Thank you for your understanding!
You can also have a look at some best practices that our MD provided for you, here,
What are RBA’s typical requirements for presenting a deal to the Advisory Committee?
The following are a broad range of requirements that should be met for a transaction to be presented to the Advisory Committee:
What will RBA not invest in?
RBA will typically avoid deals that are capital intensive and have particularly long investment horizons. The investments will be limited to the US in terms of geography.
How much will RBA invest in a particular opportunity?
Most transaction sizes will range from $250-$500k.
If only one member has made a commitment to a given opportunity, RBA will recommend that he or she invests directly into the company, outside of the RBA investment vehicle.
What are RBA’s term sheet guidelines?
RBA seeks plain vanilla, market standard, founder-friendly terms that show sophistication on the the team’s part. Convertible notes, SAFEs, and preferred equity rounds are all welcome. RBA may request an active advisory role in circumstances where it makes sense.