The funding process
Before submitting your business plan for our consideration, you must determine if angel capital – and specifically capital from our group – is right is for your company. If it is, our funding process is described below. Timelines from the initial application to successfully closing a round of financing and receiving cheques can take 2 to 4 months so it is best to start the process early.
Online application
Our business plan application is designed to extract the most important details about your business, so our internal review committee can decide if your company should: a) be invited for an initial screening presentation; b) be referred to one of our partners for help in evolving your business plan; or, c) be turned down as unlikely to receive funding from our members.
Screening meeting
After reviewing your business plan, our internal committee will determine if your idea could be of interest to our members. If you succeed, you will be invited to present to the full membership. Be prepared to deliver a ten-minute investor presentation and answer questions posed by this group for an additional ten minutes.
Presentation to membership
Following the screening meeting, you will be invited to present to our full membership. You will have the opportunity to elaborate on your business plan. Prepare to deliver a 30-minute presentation and address questions for an additional 15 minutes.
Due diligence
During the due diligence process, interested investors will verify the statements made in your business plan, presentation, and financial projections. They will thoroughly research your team’s background and track record. If you play an active role in facilitating this process, it will help to expedite a final investment decision.
Term sheet negotiation
After successful completion of the due diligence process, interested angel group members will present a term sheet that defines the structure of the investment deal – including type of equity and board of directors representation, using industry standard terms and provisions.
Funding & Beyond
When all parties agree and are satisfied with the terms and language contained in the term sheet, the deal can be executed. But remember, closing the deal is only the beginning of the angel funding process. Now you have access to a network of value-added contacts and experienced professionals who can provide essential guidance for the growth and success of your venture. Adhering to your responsibilities at this stage will enable you to get the most from your angel relationship.