The Right Fit
Angel investment is the right source of funding for only a small number of entrepreneurial businesses. Before applying to South Coast Angel Network we suggest that you consider the following:
- Can you have any proof of intellectual property protection or will your product set any barriers to entrant?
- Do you have working prototype(s)?
- Do you have a sound management team appropriate for the business?
- Is your business headquartered in South Texas or network referral?
- Are you willing to give up some amount of ownership and control of your company?
- Can you demonstrate that your company is likely to realize significant revenues and earnings in the next 3-7 years?
- Can you demonstrate that your company will produce a significant return for investors?
- Do you have an exit plan for the company that may mean you are not involved in the next 3-7 years?
In general, the best time to seek angel funding is when:
- Your product is developed or near completion with working prototype(s)
- You have existing customers or potential customers who will confirm they will buy from you
- You have invested your own dollars and exhausted other alternatives, including friends and family
- You can demonstrate that the business is likely to grow rapidly
- Your business plan is in top shape
What is South Coast Angel Network looking for in early stage companies?
The criteria used to select which companies to invest in varies, but generally you should have the following:
- Proof of intellectual property protection or other barriers to apply
- Working prototype(s)
- Company headquarters in South Texas or network referral
- A strong management team with experience and proven skills
- Unique product or service distinguished by an identified competitive advantage and large market
- Your personal financial investment in the company and investments from your friends and/or family
- A clear picture of the market for your product or service and realistic plan for market penetration
- An exit strategy for investors that is reachable within 5 to 7 years
- The potential for a strong return on investment