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Selection Process

Step 1. Application

- Companies wishing to be reviewed by the Twin Cities Angels must first submit necessary information, online (information will not be accepted via the US Mail and an initial meeting or phone call is not needed, although questions not addressed on this website are welcome via email). - see How to Apply for details.
Information provided to Twin Cities Angels will be reviewed at the next Screening Committee Meeting if received at least 2 weeks in advance of the next meeting. Otherwise, we may reserve it until the following session.

After you submit your package of information, receipt will be confirmed and you will be informed about next steps and their timing.

Step 2. Posted to Website as Current Opportunity

- For companies that pass initial screening, the information they provided will be posted to a secure area of the Twin Cities Angels Website, viewable only by Twin Cities Angels' members.

Step 3. Screening Committee

- The Twin Cities Angels Screening Committee will review the information provided by submitting companies and determine whether there is sufficient interest to invite the company CEO to present. Some companies may be contacted in advance of the screening meeting to provide additional details. We hold screening sessions approximately every 6-weeks, a week before each Member meeting. Each screening session is attended by a designated group of Twin Cities Angels members. You may be asked to attend the Screening meeting in person or by phone to make a presentation or answer questions.

Step 4. Presentation at Member Meetings

- If significant interest is shown for a particular company, the company will be contacted to present a 15-minute PowerPoint presentation at a scheduled Twin Cities Angels dinner meeting. Additional questions and discussion of your company will also be included in this meeting. Following the presentation and Q&A, the membership will discuss and vote on the attractiveness of an investment in your company. If we are interested in moving forward, we will form a Due Diligence Team that evening.

Step 5. Due Diligence Process

- A Twin Cities Angels member will be assigned to lead the due diligence process for a company that members affirmatively vote for proceeding into due diligence. That designated member will contact you shortly after your presentation with a description of our diligence process, provide you with a list of questions, and outline of our information and meeting needs. At the conclusion or in parallel with due diligence we will negotiate deal structure and terms with each company.

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, lack of skilled management or leadership, and/or inappropriate use of proceeds.

During the due diligence process Twin Cities Angels 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.

Step 6. Investment

– Once due diligence is completed, at the next member meeting members will vote on the investment, terms, and amount of the investment.

Twin Cities Angels 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 Sheet accessible from this page's left navigation bar under Resources.

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