Friday, August 29, 2008

TAN Portal for Venture Capitalists

Larry Kopp, founding c-chair of the TacomaAngel Network announced the TAN Deal Sharing Website Portal is now operational.

Kopp thanked the brilliant legal work, respectively, by our Sponsor, Joe Whitford of Davis Wright Tremaine, LLP; and the website genius of Brian Forth, Mark Neidlinger and their team at SiteCrafting, the new TAN Deal Sharing Website Portal is now operational and could soon be available to TAN's sister Angel Organizations around the Northwest who wish to share investments with TAN's members.
The attractiveness of TAN companies to TAN's sister organizations is gratifying and is a tribute to all that TAN's Membership and Screening Committee have been able to bring to Angel investing. Here are some of the comments recently received:

Investor: I spent a year with xxx venture group before I saw even ONE deal as good as these all are.

Companies: I really love the inclusive nature of your forum…it's the best I've seen…you are well organized for both companies and investors… and, You folks are really refreshing—concentrating on business, coaching, and funding. Very Professional.

Venture Capitalists (Seattle): We've been looking forward to meeting TAN; everyone has been talking about your great group, screening process, fabulous website, and professionalism.

This new portal on the TAN Website is a keystone in TAN's efforts to streamline the deal sharing process to both enable and help expand regional co-investment. This is intended to bring more capital to bear for locally emerging businesses. It also is intended to bring TAN’s members access to both more and bigger deals.
This portion of the sharing process is accomplished by making information on certain TAN companies electronically available in a password protected portion of TAN's website for joint sharing as investments with participating organizations from among the 20 or more sister Angel groups that are active in the NW between Oregon and British Columbia. TAN's database today includes around 160 companies to date that have opted to be in our program. This list is growing by about 80 companies per year.
All companies on TAN's sharing site have had their proposition and documents to some degree subjected to TAN's screening process. That process submits each company to evaluation by TAN's Screening Committee on at least 7 and as many as 15 specific elements ranging from: the Fundamental Business Proposition e.g. Is it a good idea, and various businesses components, including, among others, the PowerPoint Presentation, Business Plan, ProForma Financials, Management Team, Executional Plan and Investor Terms.

All company information in this sharing process is very carefully guarded behind a password protected portal with the intent to be shared ONLY with the accredited investors of "Sharing Angel Groups", so designated because in most cases the relationship will be reciprocal, and protected legally by an entry agreement that this information will be:
  • Kept confidential to the organization's internal purposes, and will not be shared with service providers or company competitors, but only their screening committees and accredited investor members.

  • Used for the organizations' investment purposes, and not be shared with other organizations, investors or investment groups.

  • Treated with the same or greater confidentiality as that applied in their own respective screening and member investment meetings.

  • Kept confidential from the companies, if it contains any proprietary notes developed by TAN for its internal uses, but shared with the sharing Angel group for these investment purposes.
Other efforts in this arena also include opening up regional investment blockages as they relate to:
  • Deal Process—simplify communications not only to improve the regionalization of overall investments, but to be able to fast track when investments are sponsored by another Angel organization whose screening process has been vetted so as to be able to deal with fast closing offerings.

  • Deal Sharing—finding faster and legal-light methods, which offer automated rather than overbearing paper intensive legal processes.

  • Cross Border Investment—A 4 way process for both companies and investors. US Companies going to Canada, Canadian companies here; US investors there; Canadian Investors here.
We hope that these efforts being made on TAN's member's behalf by your volunteers, interns and Chamber will bring you many pleasant years of profitable and productive investing.

A portion of the site for each company generally contains the following documents a Sharing Angel Organization will find on TAN companies:

  • A brief overall summary, including:

  • Contacts, business description, years in business, number of employees;

  • Source of prior financing and current bank balances, requested financing amount (including minimum investment);

  • Type of financing and amount to first close, intended uses for the money raised, current pre-money and post money valuation;

  • Cash flow break even status or time to break even, revenues today;

  • Number of years to exit and anticipated type;

  • Expected valuation at exit and how arrived at;

  • Additional capital needed after current raise to get to exit point, including when and how that money is to be raised.

  • PowerPoint Presentation

  • Executive Summary

  • Business Plan

  • 5 year Financial Plan

  • Capitalization Table (fully diluted)

  • Term sheet and/or Subscription documents

No comments:

Post a Comment