Qualifications for Membership
Qualifications for Membership
You must be a US-Accredited Angel Investor by the rules of the US SEC (click here) with expertise in life sciences, often called 501C Regulation D. This includes corporate and trust entities. Most of our members qualify as:
An individual who has individual net worth, or joint net worth with spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence.
An individual with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
Our Members
LSA members include investors with careers in the life sciences; however, many members are interested in investing in life sciences but have had professional careers in a different arena. We welcome both types of members.
Members include prominent executives, physicians, scientists, engineers, and entrepreneurs. LSA’s members have been founders, Chairpersons, CEOs, and senior-level executives in many healthcare startups. LSA members are active participants in deal sourcing, due diligence, membership screening, coaching, etc. In addition, LSA’s members include family offices and groups desirous of an early window on healthcare startups, as well as in investing alongside LSA.
How much do our Members invest in general?
Everyone’s financial situation and tolerance of risk are different. However, we find a good approach is to invest a smaller amount in more deals, for example, 2 to 3 deals each year, instead of putting all the investment in one deal. LSA members are expected to invest $25,000 per year.
Facts and Figures:
The minimum investment by an individual in an initial LSA investment in a company is $5,000.
In follow-on rounds, the minimum investment is $5,000 unless our pro rata in the deal reduces this amount. Since LSA historically has made about 2 follow-on investments, there should be ample opportunities for these investments if you are an existing investor in the deal. There has often been investment available for other members, but only if existing members do not take their pro rata shares.
LSA only makes a first-time investment in a company if 6 or more members join the round.