In addition to annual dues which pay for our support staff, meetings and marketing, NWA does both voluntary and mandatory deals into which members invest. Generally, mandatory deals are larger where NWA is investing $750,000 or more, while voluntary deals are in companies needing $500,000 or less. The investment committee can authorize up to $20,000 per member in mandatory deals each year, but no deal can require more than $10,000 of a mandatory investment.
While as a practical matter, in some years we do fewer mandatory deals and more voluntary deals, the marketplace determines what is needed to succeed in angel investing so each member should be prepared to invest at least $20,000 each year. There is rarely a cap on how much a member can invest in any one deal.
We do not operate with a fund but rather conduct capital calls into a new LLC set up for each investment. The LLC runs the life of an investment and members investing own units in the LLC, even if they should decide not to remain a member the following year.