Valuation
We invest in pre-money valuations that are below $5 million. The majority of our deal valuations are in the $2.0 million to $3.5 million range. A key reason for this is that it gives the investor the potential for a nice return at a modest exit valuation. It also allows for some protection against future round dilution. It is also in the entrepreneur's best interest to have the valuations of subsequent rounds increasing and avoiding bad will and anti-dilution ratchets.
------------------------------
Use of proceeds
Funds must be used to accelerate your company's achievement of key milestones that increase the company's value. We often fund activities that include research and product development, building a sales and marketing infrastructure and hiring key executives.
---------------------------
Growth potential
We look for companies that can grow quickly and manage the scale necessary to succeed. Your company must demonstrate a plan to generate significant profits beyond the initial product idea. Do you have a strategy to achieve multiple sources of revenue?
---------------------------
Fit
Our group members are all accredited individual investors with significant executive experience in a variety of fields. One of the benefits of working with angel investors is the active coaching and contact network that such investors can provide. As such, there must be a fit between members of our group and your idea, and your team.
---------------------------