1. Entrepreneur’s
Guide
to
the
Ohio
TechAngels’
Investment
Process
•
To
qualify
for
investment
consideration
from
an
OTAF
fund,
the
company
must
be
(or
plan
to
be)
the
following:
1)
based
in
Ohio;
2)
a
C-­‐Corp
legal
entity,
incorporated
in
Delaware
or
Ohio,
and;
3)
part
of
one
of
these
subsectors:
IT
(software
or
hardware),
Life
Sciences,
or
Advanced
Materials.
•
The
first
step
is
to
submit
a
business
plan
and
funding
application
via
ohiotechangels.com.
Suitable
and
attractive
opportunities
will
be
invited
to
pitch
to
the
OTAF
Investment
Screening
Committee.
•
Our
Investment
Screening
Committee
(ISC)
requires
a
$300
check
to
Ohio
TechAngel
Fund
IV,
LLC.
•
The
entrepreneur
must
send
a
2-­‐page
executive
summary
(one
page
front-­‐and-­‐back
as
printed)
as
well
as
a
PowerPoint
presentation
covering
the
topics
included
in
the
attached
slides.
•
At
the
meeting
he/she
is
allowed
13
minutes
to
present
the
company,
and
15-­‐20
minutes
of
Q&A.
•
The
ISC
votes
after
the
presentations
and
discussions
and
follows
up
in
the
same
day.
•
If
the
company
is
approved
by
the
ISC,
then
the
entrepreneur
provides
the
same
presentation
to
the
full
OTAF
membership
the
following
week
at
the
monthly
members’
meeting.
The
entrepreneur
is
expected
to
bring
80
copies
of
the
executive
summary
be
placed
on
the
tables
prior
to
the
meeting.
•
The
members
of
OTAF
III
will
vote
‘yes’
or
‘no’
to
proceed
with
formal
due
diligence
that
evening
after
the
presentation
and
Q&A.
A
simple
majority
vote
of
those
OTAF
III
members
present
is
sufficient
to
commence
DD
so
long
as
at
least
three
members
volunteer
to
join
the
DD
team
(which
will
be
led
by
either
John
Huston
or
Zach
Lawrence).
•
The
DD
Team
must
complete
its
work
within
two
months,
or
the
deal
is
‘shelved’
and
must
recommence
the
entire
process,
starting
with
the
ISC,
in
the
future.
•
If
the
due
diligence
does
not
‘solve
for
stop’
and
agrees
that
the
investment
opportunity
is
appropriate
for
the
Fund,
we
sign
a
term
sheet
based
on
the
standard
generic
terms
provided
to
the
entrepreneur
at
the
beginning
of
the
process.
We
recommend
that
the
entrepreneur
not
hire
an
attorney
to
create
a
PPM
without
first
ensuring
the
terms
match
our
standard
requirements.
Our
standard
docs
will
save
money
and
time,
and
will
make
syndication
much
easier
and
smoother.
•
We
then
invite
the
entrepreneur
back
to
present
one
final
time
to
the
membership,
again
bringing
80
copies
of
the
executive
summary.
(The
company
must
sign
a
term
sheet
prior
to
the
final
pitch.)
•
The
due
diligence
team
presents
its
findings
immediately
after
the
entrepreneur’s
presentation,
followed
by
Q&A.
The
DD
team
sets
a
minimum
investment
raise
required
to
break
escrow
and
achieve
first
close,
and
this
is
included
as
part
of
the
term
sheet
and
final
recommendation
deck.
•
The
membership
makes
a
final
vote,
and
if
affirmative
by
simple
majority,
we
move
forward
on
the
definitive
documents
and
first
close.
•
The
Fund
can
invest
$325,000
and
we
arrange
a
‘sidecar
séance’
for
individual
members
of
the
Ohio
TechAngels
who
are
interested
in
writing
$10k+
checks
to
invest
as
sidecars
along
with
the
fund.
Funding
takes
place
as
soon
as
possible
after
the
minimum
raise
has
been
achieved.
•
If
the
company
is
raising
more
than
OTAF
and
sidecars
will
fund
directly,
we
will
formulate
a
syndication
strategy
and
socialize
the
company
with
our
investment
partners
around
Ohio
and
the
Midwest.
We
have
led
and
participated
in
syndications
of
more
than
$2
million
Series
A
financings.
Ohio
TechAngel
Funds
1275
Kinnear
Road,
Columbus,
OH
43212
(614)
487-­‐3700