The first and key step is for you to complete the business plan per this web site. Your ability to clearly and succinctly present your concept in this form is critical for consideration by the Arch Angel Network. The template limits the amount of text you can use in the summary. You may also include a more in depth executive summary.
After you submit your proposal, you will receive an e-mail within 30 days from the date your proposal was submitted informing you if there is sufficient interest in your proposal to advance to the pre-screening process. If there is sufficient interest, you will be assigned a pre-screening advocate from the Arch Angels. Based on the advocate’s review of your companies product, market and financials, he or she may (1) recommend that you present at one of our screening sessions, (2) determine that you are not likely to succeed in your proposal to the Arch Angels, or (3) refer you to one of our affiliated incubators or to one of the various entrepreneurial resources listed in the resources section of our website as a way to better prepare you to be eligible for our further consideration. During the pre-screening process we will also provide you with guidance on your presentation. Your mission is to captivate the attention of your pre-screening team looking to find one or more “champions” who will communicate why you may be an excellent candidate for further consideration by the Arch Angels.
We hold screening sessions in St. Louis monthly. Each screening session is attended by a group of Arch Angels members. If chosen, you will have approximately 15 minutes to make a formal presentation followed by 15 minutes of Q&A. We generally hold the Q&A after you’re finished making your formal presentation. Refer to the Presentation Guidelines below for more information. Your primary mission is to generate sufficient interest among the Arch Angel members in attendance to get invited to present to the entire Arch Angel Network.
Due Diligence Process
If your dinner presentation generates sufficient interest, an Arch Angel member will be assigned to lead your due diligence process. The due diligence process is designed to uncover potential “show stoppers” reasons not to invest. Potential areas of concern that due diligence would uncover are poor ratings in scientific analysis, untenable pre-existing agreements, disruptive or complex shareholders issues, inadequate IP protection, excessive current liabilities, and/or inappropriate use of proceeds.
During the due diligence process Arch Angel members will analyze your investment opportunity across a number of parameters including:
Investment Opportunity - detailed business plan analysis, competition, and current capitalization;
Personnel - management and board background and reference checks;
Financials - detailed financial analysis;
Scientific Review - independent peer review as to the merits of the technology;
Intellectual Property - detailed review of patent claims and covenants;
Organization - review of articles of incorporation, partnership agreements and affiliations; and,
Legal - review of all customer contracts and shareholder agreements.
If you attract especially high interest among those involved in the screening process, you will be invited you to present to the entire Arch Angel membership at a one of our monthly meetings. Your mission during your presentation at a dinner meeting is to attract individual Arch Angels to start considering how much they are willing to invest in your company and perform due diligence. After the meeting, you are invited to mingle with the Angels at our cocktail reception.
Term Sheet Negotiation & Investment
Once sufficient Arch Angel members and other investors have identified the amounts they desire to invest in your opportunity, an Arch Angel member negotiates the term sheet with you. Arch Angel members’ terms of investment follow “standard” terms for financings developed over the years by VCs and other sophisticated investors. These terms explain what is contemplated and what is prohibited (most of the time many of those events never surface). Please read the sections on Valuations and Term Sheets accessible from the resource tab of this web site.
Each member of the Arch Angels invests individually as the Arch Angel Network is not a fund. However, all Arch Angel members who invest in a deal typically will follow the identical term sheet.
Once the Investment is Complete You can utilize the Arch Angel investors network, which is available for assistance in growing your business. All members invest to see companies succeed. Our process contributes to your success.
During each screening session, you will have approximately 10 minutes to make a formal presentation, followed by Q&A. If you have been invited to present, contact Chris Walsh for presentation guidelines. Click here to view our screening criteria.