Why be part of Angel Capital Group as an entrepreneur?
Sheltowee Angel Network (SAN) is a syndicate of angel groups and funds. We have amassed hundreds of great minds, subject matter experts, successful entrepreneurs, and venture-style investors from around the network who share diligence, expertise, experience, connections, and industry insight on ventures to identify irresistible opportunities. We are here to fund your venture. We are here to help you grow your business.
We typically invest in 10 companies per year between $50,000 and $250,000, but have invested as much as $1.5M in a single venture. We typically do two rounds with portfolio companies that demonstrate execution and great communication.
We provide you a highly efficient mechanism for raising capital. We will work with you to build a broad syndicate of investors to capture the resources necessary to execute your business plan. We want you leading your company and selling products and services, not shares.
Pitch & Road Show
Become A Portfolio Company
“There are no participation trophies in entrepreneurship.” – Eric Dobson
We want to engage our local entrepreneurs and help to grow the creative capacity of our chapter cities. And, we want to work with great teams with great ideas to turn them into great companies (in the Jim Collins sense of the word “great”). To engage with us, you must first apply for funding. We share your deal information privately with our network of investors. It gives us the ability to quickly tell you our level of interest in your venture, find deal champions within the network, and serves as the basis for our diligence reports to our members. The more you engage in this process, the easier it is for us to fund you.
If you reside in the region of one of our Chapters, then you must first win the support of that Chapter and we will connect you. If you do not reside in the the region of one of our Chapters, we will find the Chapter or affiliate that best fits your market. They will decide to invite you to FirstPitch based on your supplied information. FirstPitch is an opportunity for you to win the backing of one of our syndicate member Chapters, which is required before we will open your venture to funding by the entire network. We do not perform deep diligence until one of the Chapters agrees to lead the round. Once the internal lead is identified, you will be invited pitch to the entire syndicate on a private, broadcasted monthly meeting (third Tuesday of each month). We will make a deal call, collect commitments, collect capital, form one LLC to hold the investment, and wire. From the time you first pitch, the process is 60 – 90 days with a deep diligence dive on your company and team. Then, we work with you to identify external partners with you to fill out your round. If you are not in our network footprint, then please have a lead investor that we can work with to syndicate your venture.
This is a very competitive process. We typically invest in 1 – 2% of applications (about 10 – 15 per year). We typically invest $50k – $150k in a first round. We generally plan to do two rounds with companies that demonstrate execution, leadership, and strong communication skills. Second rounds tend to range between $150k and $500k. Happy hunting!
First Pitch Guidelines
- Fill out an initial application online, which provides our Angels with your contact info and some basic information about your company.
- You will be invited to present to one of our chapters, either the closest or most appropriate.
- 10 minute pitch to introduce your venture to our members.
- 10 minutes for questions for our members to get a feel for your team and venture.
- The local Chapter President will coordinate all activities regarding the FirstPitch.
- You are encouraged to bring guests so long as they are ACCREDITED INVESTORS.
- You are welcome to stay for the main presenting company but will be asked to leave when they are finished.
You are under no contract or obligation to raise funding through SAN.
Video Road Show
The Virtual Road Show (VRS) company is selected through a very competitive process each month an have a deal champion inside SAN. This company is put through deep diligence and a term sheet is signed defining the terms under which SAN will invest. This company takes a road trip to sunny Knoxville, TN to make one video presentation that is broadcast to all chapters of SAN on the third Tuesday of the month. The video is archived for future reference by the SAN members. You will have access to the video for your own purposes. Once the Road Show is finished, we make a deal call to our syndicate members to make commitments to the deal. We then aggregate and wire funds directly to the company. This process from start to finish takes 8 – 12 weeks. We move at the pace of the “crowd,” but with the luxury of deep diligence and industry standard, investor friendly terms that will prepare the company to readily raise additional capital in the future if required.
We are science and technology investors at heart.
-Eric Dobson, CEO
When we consider an applicant for funding, we have a responsibility to our members to seek the absolute best deals out of as large a sample size as we can get. We also have a responsibility to help them build a holistic portfolio and specifically counsel against going all-in on long shots. We promote a diversification strategy for our investors, and we focus (to the best of our ability to judge) on opportunities we think have a high probability of exiting within 5 years. And, from time to time, other market dynamics are in play that affect which deals proceed through our pipeline and which do not.
What we’re saying is: it’s not personal; it’s portfolio strategy. If it’s not a good fit today, we always offer our feedback to applicants that want to improve their chances for success.
Our Criteria for Consideration
1. Companies with unique and/or protectable products or services with large market opportunities and recurring revenue models.
2. Companies with a management team in place.
3. Companies with a beta version of their product with beta clients/testing at a minimum.
4. Companies that are within six months of the inflection point of making meaningful revenue at a minimum (exceptions for medical devices and biotech).
5. Companies that can be cash flow positive within a maximum of two years and breakeven within 3 years (exceptions for medical devices and biotech).
6. Seed, Series A, or Series B offerings.
7. Companies with a clear and logical marketing plan, sales plan, and compelling exit strategy.
8. Companies from a $1.5M – $12M valuation.
9. Potential for a return of a 3 – 5 times our invested capital in 3 – 5 years, which generally equates to between $15M – $30M in annual revenue at a minimum in that time frame.
We invest in the following markets:
2. Software/software as a service
3. Medical devices
4. Biotech/life sciences
5. Digital/web media
6. Financial services
8. Green/Clean technology
9. An occasional consumer product if it is unique and protectable with a large market.
We generally do not invest in:
1. Real estate and REITs
2. Retail (fashion, etc.)
3. Restaurants, beverages, and food service
4. Research and development laboratories
5. Companies solely focused on managing government contracts
6. Service-based businesses outside of software
7. Foreign based businesses