We are always on the lookout for interesting investment opportunities to bring to our members. Over the course of a given calendar year, we aim to present about 20 new opportunities to our members from the numerous deals we review.
Pre-Screening Process
The St. Louis Arch Angels invites your company to complete an application. If you are invited to complete an application, the due diligence team reviews the submission, and asks any necessary follow-up questions. Please be prompt in responding to the due diligence team. Once you have submitted all of the necessary information and answered any follow-up questions, we can then consider whether the opportunity is ready to present to the screening committee. It is important that you are open to guidance in your presentation as to make sure you put your best foot forward.
Screening Meeting
The screening committee meets in advance of each of our 10 annual member meetings, providing an opportunity for the entrepreneurs to pitch to a smaller group of Arch Angels members. If chosen, you will have approximately 10 minutes to make a formal presentation followed by 10 - 15 minutes of Q&A. We generally hold the Q&A after you’re finished making your formal presentation. Your primary mission is to generate sufficient interest among the Arch Angel members in attendance to get invited to present to the full membership of the St. Louis Arch Angels.
Member Meeting
After your presentation to the screening committee, you may be invited to present to the full group. During that presentation, you will have another 10 minutes to present your pitch, and time for follow-up questions afterwards. If possible, please incorporate answers to questions you received during the screening meeting and any other advice Angels have given you about your presentation.
Due Diligence Process
If your presentation generates sufficient interest during the member meeting, an Arch Angel will be assigned to lead your due diligence process. The due diligence process is designed to get a better understanding of your company and find the reasons to invest, or 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.
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 and many Angels take active roles on the board or through mentorship in companies that they invest in. We will also reach out to you twice a year formally to gather information to include in our member updates and annual report.
Presentation Guidelines
If you have been invited to present, contact Chris Walsh for presentation guidelines. Click here to view our screening criteria.