Self Assessment
Before submitting your business plan for our consideration, you must determine if Angel capital - and specifically capital from our group - is right for your company.
Online Application
Our business plan application is designed to extract the most important details about your business, so our internal review committee can decide if your company should:
a. be invited for a presentation;
b. be referred to one of our partners for help in evolving your business plan; or,
c. be turned down as unlikely to receive funding from our members.
Screening
After reviewing your submission, our internal committee will determine if your idea could be of interest to our members. Part of this process may be a telephone, or in-person discussion with one or more of our members to help us better understand your opportunity. If you succeed at this first stage you will be invited to present to our group.
Presentation to Membership
Following the screening, you may be invited to present to our full membership. If selected to present you will be asked to engage in pitch coaching provided free by Melbourne Angels to improve the success of your presentation.
You will have the opportunity to elaborate on your business plan. Prepare to deliver a 10-15 minute presentation and address questions for an additional 30-40 minutes.
There are many resources on the web to help you make better presentations (see our eBooks for Entrepreneurs) and one we like that relates to Angels can be found here with Do’s and Don’ts.
Evaluation
If the presentation goes well and several members of the group (or more) are intereseted in your opportunity then we will enter a phase of evaluation. More information always leads to more questions. We avoid this being an endless spiral but, it is usually appropriate to engage in a number of discussions to better understand you, your team, your market and your opportunity.
Terms Sheet Negotiation
If, after evaluation, there is sufficient interest among the group members then an initial investment proposal will be put to you for consideration. If that proposal basically suits you then interested Angel group members will present a term sheet that defines the structure of the investment deal – including any key terms you require - using industry standard terms and provisions. All terms sheets are subject to due diligence.
Due Diligence
Once the terms sheet has been agreed and signed by you and our group members, those members interested in investing will undertake due diligence. During due diligence, interested investors will verify the statements made in your business plan, presentation and financial projections. They will thoroughly research the backgrounds of your team and their track records. If you play an active role in facilitating this process, it will help to expedite a final investment decision.
Funding & Beyond
When all parties are satisfied with the due diligence then the final terms and conditions of the investment will be agreed, based on the term sheet, and the deal can be executed. But remember, closing the deal is only the beginning of the Angel funding process. Now you have access to a network of value-added contacts and experienced professionals who can provide essential guidance for the growth and success of your venture. Adhering to the responsibilities at this stage will enable you to get the most from your Angel relationship.
Exit
The final step in the Angel investor process is the exit. Angels invest to reap returns, preferably high returns. A key contribution that can be made by Angels is keeping an eye on this objective during the growth of the business and fostering the relationships that could lead to a successful, high order multiple exit. Whether the exit is for the Angel investors alone, or for all investors together, it is part of the collaborative development of the strategy and future vision for the company.
Before submitting your business plan for our consideration, you must determine if Angel capital - and specifically capital from our group - is right for your company.
Online Application
Our business plan application is designed to extract the most important details about your business, so our internal review committee can decide if your company should:
a. be invited for a presentation;
b. be referred to one of our partners for help in evolving your business plan; or,
c. be turned down as unlikely to receive funding from our members.
Screening
After reviewing your submission, our internal committee will determine if your idea could be of interest to our members. Part of this process may be a telephone, or in-person discussion with one or more of our members to help us better understand your opportunity. If you succeed at this first stage you will be invited to present to our group.
Presentation to Membership
Following the screening, you may be invited to present to our full membership. If selected to present you will be asked to engage in pitch coaching provided free by Melbourne Angels to improve the success of your presentation.
You will have the opportunity to elaborate on your business plan. Prepare to deliver a 10-15 minute presentation and address questions for an additional 30-40 minutes.
There are many resources on the web to help you make better presentations (see our eBooks for Entrepreneurs) and one we like that relates to Angels can be found here with Do’s and Don’ts.
Evaluation
If the presentation goes well and several members of the group (or more) are intereseted in your opportunity then we will enter a phase of evaluation. More information always leads to more questions. We avoid this being an endless spiral but, it is usually appropriate to engage in a number of discussions to better understand you, your team, your market and your opportunity.
Terms Sheet Negotiation
If, after evaluation, there is sufficient interest among the group members then an initial investment proposal will be put to you for consideration. If that proposal basically suits you then interested Angel group members will present a term sheet that defines the structure of the investment deal – including any key terms you require - using industry standard terms and provisions. All terms sheets are subject to due diligence.
Due Diligence
Once the terms sheet has been agreed and signed by you and our group members, those members interested in investing will undertake due diligence. During due diligence, interested investors will verify the statements made in your business plan, presentation and financial projections. They will thoroughly research the backgrounds of your team and their track records. If you play an active role in facilitating this process, it will help to expedite a final investment decision.
Funding & Beyond
When all parties are satisfied with the due diligence then the final terms and conditions of the investment will be agreed, based on the term sheet, and the deal can be executed. But remember, closing the deal is only the beginning of the Angel funding process. Now you have access to a network of value-added contacts and experienced professionals who can provide essential guidance for the growth and success of your venture. Adhering to the responsibilities at this stage will enable you to get the most from your Angel relationship.
Exit
The final step in the Angel investor process is the exit. Angels invest to reap returns, preferably high returns. A key contribution that can be made by Angels is keeping an eye on this objective during the growth of the business and fostering the relationships that could lead to a successful, high order multiple exit. Whether the exit is for the Angel investors alone, or for all investors together, it is part of the collaborative development of the strategy and future vision for the company.
