INVESTMENT PROCESS

The following is a brief summary of the investment process:

• Apply online via Gust.com The company will complete a one page executive summary outlining the key characteristics of the company. We will review the application and determine if it is a good fit for our group. If it is deemed a good fit, then the company will be invited for an initial screening presentation.
• Screening meeting. Screening is held once a month and will consist of a 15 minute presentation to approximately 10 members. The top three or four companies from screening will be asked to present to the full membership at breakfast in two weeks.
• Breakfast Presentation to membership. A final 20 minute presentation will be made to the entire membership. If there is sufficient interest from the membership, then the company will be invited back for a Discovery session.
• Discovery. Discovery is a one hour meeting where a more in depth discussion will occur on the key issues affecting the future success of the business. No additional preparation is necessary for Discovery. If there is sufficient interest following Discovery, then Due Diligence will commence.
• Due Diligence. During Due Diligence, interested investors will verify the statements made in the business plan, presentation, and financial projections. They will thoroughly research the team's background and track record. An initial discussion of valuation and terms will happen early in Due Diligence to make sure the two parties are within working distance of each other and that Due Diligence can proceed.
• 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 are satisfied with the terms and language contained in the term sheet, the deal can be executed. Closing the deal is only the beginning of the angel funding process. It is expected that investors will provide the company with access to their network of value-added contacts and offer their guidance for the growth and success of the venture.