Start-Up Companies — Evaluation and Funding Process
This process begins after you have completed all the required activities involving registering and profiling your company.
- Executive Summary and associated fee submission
- Business Plan and associated fee submission
- Discussions with Advisory Board and Select Investors
- Presentation of Company by Management to Investors
- Term Sheet offer
- Due Diligence Process with Due Diligence team, Investors and their Advisors
- Negotiation and Finalization of Terms of Agreement
A select group of investors and advisors will review your Executive summary and innovation profile to determine if it appropriate for further consideration. If they believe that further evaluation is warranted, Heartland Angels will request a non-confidential business plan. This business plan should be written with its focus on the investor who is interested in your ability to offer or manufacture, market and profitably sell your service or product.
This select group of investors and advisors will present their assessment to the general investor membership to determine their level of interest in funding your company. If there is significant interest in so doing, a term sheet will be given to you. If you decide to continue with the process, several members from the due diligence team as well as other investors will personally discuss and analyze information provided by the management about company against our pre-established criteria using our due diligence protocol.
A sponsoring investor will work with the company's management to help prepare them for the company's presentation to the investor group (In some cases, a public presentation may be set up for the company to practice their presentation). The presentation will be followed by a Q & A period. In a private meeting the due diligence reports and other comments by interested investors will be made available to the entire investor membership. If a decision is made to invest in the company, then a representative for the investors will enter into negotiations with a representative of the company.
In general, the final structure of the deal will provide a) for the capital and cash flow needs of the company as per the interest of the investors, b) identify the issues dealing with liquidity, c) equity and return on investment for the investors and d) establish mechanisms and procedures dealing with monitoring and control of the investment.
Investors and advisors may reject a proposed investment if it does not meet certain criteria.
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