Online application - OAF only considers businesses who have applied online to the
Portland Angel Network. The online application process is designed to extract and highlight the most important details about a business in a straightforward and secure manner. Entrepreneurs can post supporting documents throughout the due diligence process, including an executive summary or short business plan (required), a financial plan, presentations, term sheets, investment subscription docs, company updates, customer letters, and anything else that may aid OAF members in their due diligence.
Investment terms - If a company has a lead outside investor and open funding round, OAF will evaluate the investment terms as part of its overall evaluation of the investment opportunity. If an applying company does not have a lead outside investor and OAF desires to invest, OAF would offer either a Standard Convertible Loan Term Sheet or a "plain vanilla" friendly equity investment term sheet. Screening meeting - After reviewing the PAN applications, OAF members meet every two months to review and discuss the investment opportunities of greatest personal interest. The businesses are ranked anonymously using a wireless audience response system and three companies are selected to present at the next PAN/OAF meeting. Research begins immediately on those companies in which an OAF member has stepped forward to lead a due diligence team. A company may still be invited to present at the next PAN/OAF meeting even if no OAF members have volunteered to lead due diligence.
Due diligence - A due diligence team verifies statements made in the application and business plan and meets with the entrepreneur. The team researches management's background and track record, the market, and the competition. Due diligence teams are supported by the OAF fund managers and typically spend 100 to 300 total person-hours researching a company over an 8-10 week period before recommending an investment vote. A due diligence lead or team member may have an existing economic interest in the company being researched, however, such interest must be clearly and fully disclosed to the OAF membership.
Presentation - Selected companies are invited to present and answer questions at a combined PAN/OAF meeting and reception, held every two months. Presenting companies are highly encouraged to enroll in a complimentary
OEN Private Investor Presentation Review in advance. OAF members vote whether to continue due diligence on each presenting company, with the intent of making an investment recommendation at the next OAF meeting.
Investment decisions - Every two months, OAF members review due diligence findings and recommendations and vote to either "invest in", "defer consideration for later", or "deny" funding to companies under consideration. A two-thirds majority vote of OAF members is required to trigger an investment. OAF and PAN members may invest on their own alongside OAF or in deals not receiving OAF investment. The entire process from application to investment decision takes 8-10 weeks. Feedback from the due diligence process and discussions is privately shared with applying entrepreneurs.
Post funding - After an investment is made, the company enjoys access to a network of value-added contacts and experienced business professionals within OAF who can provide critical guidance for the growth and success of the venture. Typically, an OAF member, often the due diligence lead, will play an active role in the development of the company and serve as a board member or board observer, at least until the next financing. OAF members often help with raising additional capital, recruiting employees, making customer and partner introductions, and assisting with business planning.
Questions about OAF should be directed to
OAF@CapybaraVentures.com.
Oregon Angel Fund Portfolio Page.