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Investor FAQ
- What is the New England Investment Network? The New England Investment Network is an online platform designed to connect entrepreneurs (looking for growth or start-up capital) and angel investors (looking for investment opportunities). The New England Investment Network is unique in that it offers a local, national and global platform with partner networks across North America, South America, Europe, Africa, Asia and Australasia. The New England Investment Network is continually growing, developing and updating it's database of investment proposals.
- Who are the entrepreneurs? Existing (small to medium size) business owners as well as start-ups involved in a diverse range of businesses. Opportunities presented here include everything from manufacturing companies to real estate opportunities and everything in between. Generally, these entrepreneurs have exhausted traditional lending sources and their own private equity sources and must look for ways to bring in outside sources of capital for growth (i.e. angel investors). They are often too small to be eligible for venture capital funding and/or have business models that don't interest traditional bankers. Many of the entrepreneurs found here are proficient in their particular field of expertise but may be more inexperienced in the realm of finance so please be as patient and understanding as possible.
- How does this service work? As an angel investor, you first register as a member on the site for free and choose your investment preferences. We then send you proposals that match these criteria. Each email contains a link to our website that allows you to view further details of any opportunity that interests you and to contact the entrepreneur. If the entrepreneur subsequently chooses to pay the Referral Fee, he/she will get in touch via your preferred contact method (email, phone etc.). Alternatively some Premium Service proposals will include company details allowing you to contact entrepreneurs directly.
- What are the costs? The New England Investment Network is completely free to investors. There are no hidden or additional charges of any sort. The entrepreneurs are charged a one-off fee to receive the contact details of all the investors interested in their proposal.
- Is there a maximum/minimum investment? No, we have clients looking to raise funds ranging from a few thousand dollars to millions of dollars.
- How do I change my investment criteria? If you wish to change your investment criteria, go to My Basic Profile and change any settings you need to (e.g. industries, regions, and investment range).
- What do "Fees paid" and "Awaiting Response" mean? Once you have issued a contact request the entrepreneur will be notified of your interest. They are then asked to pay a small contact fee, which gives them access to the contact details of all the investor’s interested in their proposal. One of the following phrases will display in your list of contacts:
"Fees paid” means they have paid the Referral Fee or Premium Service Fee and should be in touch soon.
"Awaiting Response" means they have not yet paid the Referral Fee or Premium Service Fee. - How is my privacy protected? The site was developed using proprietary database management tools and a secure server is used to assure that no one has access to your business or personal information. Your information is not offered to any third party for other purposes and the information you enter into the website is guaranteed to be kept confidential and private.
- How much can I expect to make for a return on my investment? This is very dependent on the situation, size of investment, size of company, industry trends, etc. However, it is estimated that many angel investment returns in US small businesses and start-ups have been in the range of 20-40% return on investment (ROI). Some prove to be less but they are sometimes much, much more.
- Are there any tax benefits to be gained from angel investing? Yes. Angel investing in small business opportunities offers many tax benefits. For example, losses realized resulting from investments in start-up companies that fall under Internal Revenue Code, Section 1244 (which defines "qualified small business tax treatment") are deductible against ordinary income taxes.
One-half of any gains realized from investing in "qualified small businesses", under section 1202 of the IRS code, if held for a specific period of time, can be excluded from capital gains tax. Regardless of the holding period, any gains realized from a Section 1202 "qualified small business", qualifies for a 1045, tax free exchange into a new "qualified small business". (See your accountant for specific details.)
For further details on Angel Investing guidelines, please refer to Internal Revenue Service or Securities And Exchange Commission
- I have other questions, who do I contact? Contact us by email: admin@newenglandinvestmentnetwork.com
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