How are deal negotiations managed?
One of the investors in the deal will serve as the 'Deal Lead'. This person is a single point of contact for the entrepreneur. The regional Managing Director and the Club President should be informed periodically on the proposed deal terms in case there are terms that won’t work for our structure or may otherwise adversely compromise our position in the deal.
If none of the deal investors feel experienced enough to negotiate deal terms, one of our leadership team members or an experienced member will help, but we would like an investor in the deal to act as the Deal Lead.
We prefer to only invest in deals when we have Financial Information Rights and Pro Rata rights in follow-on financings. We have a standard side letter for those and other deal terms if needed.
As a policy, Wharton Alumni Angels does not participate in Rule 506(c) offerings or invest in 'pass-through' operating companies such as sole proprietorships, partnerships, S-corporations, and LLCs. Ask our leadership team for support if these are unfamiliar to you.