Cleantech Angel Network

Cleantech Angel Network - Ideal Startup Investment

Industry Fit:

Our group members - all accredited individual investors - are committed to investment in the clean technologies sector. The concept of 'Cleantech' encompasses a diverse range of technologies, processes and products, which span across many different industries. It can be defined as any knowledge-based product or service that provides increased performance at a lower cost; seeks to eliminate or minimize negative environmental impact or maximize the responsible use of natural resources.

Application Process:

Companies fitting these investment criteria are invited to submit their application online through our website.

If a company passes the screening process, it has an opportunity to present at the monthly Cleantech Angel Network meeting. Presentations are 20 minutes, followed by a Q&A. If Angels are interested in investing in the company, a due diligence process follows. Our due diligence effort is very thorough, and typically results in an investment decision within 60-90 days from the presentation date.

Term Sheets and Non-Disclosure Agreements:

We use our own term sheets and NDAs. We are not in the business of sharing your information with your competitors, and NDAs will only be used if absolutely necessary. NDAs will be signed by the due diligence team and will be valid for 1 year.

Technology:

We invest in both first-of-a-kind technologies and enhancements to common products and services. The concept behind the technology must be proven, verifiable and have a clear path to commercialization. Breakthrough innovations must always be accompanied by a strong business plan. Companies we invest in must be able to obtain patents and IP protection.

Market Opportunity:

We invest in solutions that address major problems for significantly large target markets (i.e. a $100+ million addressable market). You must demonstrate a strategy to claim a significant share of this market (>20%). There are plenty of great business ideas - but not all businesses will generate returns that justify Angel investment. Providing a solution to a problem with a large potential market is essential.

Competitive Advantage:

Your company must have some proprietary features that distinguish you from potential competitors or provide barriers to entry that prevent other companies from capturing your customers with a similar offering. Attributes that convey competitive advantage include intellectual property protection, exclusive licenses, exclusive marketing and distribution relationships, strong brands, scarce human resources (i.e. knowledge and skills), and access to scarce raw materials. Our investments are therefore likely to be in companies that are IP-centric.

Use of Proceeds:

Funds must be used to accelerate your company's achievement of key milestones that increase the company's value. We will fund activities that include technology verification, research, patent applications and product development.

Management Team:

We look for a team of high-quality entrepreneurs with a track record of leadership and performance. We also look at your team's passion for and commitment to the new business idea, and your ability to inspire confidence among future stakeholders, including employees, potential customers, and investors. As we will be working together as partners, your team's credibility is essential. In addition, your team must be open to and comfortable with receiving input provided by Angel investors.

Active Investment:

We are active investors. We work closely with the companies we invest in and generally sit on the board of directors. This allows us to help you in the most direct and impactful way, while giving you the opportunity to benefit and learn from our expertise.

Growth Potential:

We look for companies that can grow quickly and manage the scale necessary to succeed. Your company must demonstrate a plan to generate significant profits beyond the initial product idea. Do you have a strategy to achieve multiple sources of revenue? We also require well-conceived financial projections, based on sound assumptions, demonstrating consistent profits and cash flow growth.

Governance:

Companies we invest in must accept public-like governance levels and actively enforce them.

Exit Strategy:

Our members typically seek returns of at least ten times their initial investment, within five-to-seven years. This level of return on investment is essential due to the high risk and likelihood of failure among early-stage ventures. Thus, a clearly articulated exit strategy - how Angel investors will extract such returns - is essential. For example, do you plan to sell the company to an established corporation in your industry? Or will your exit be through subsequent rounds of financing - venture capital or the public markets? Angel investors are not just interested in the strategy you select, but more importantly in the how - the operational strategy that shows the specific steps you will take to achieve the exit.

Aspiration:

We strive to invest in market leaders. So tell us how you are going to be the world leader in your industry. Tell us how you’re going to change the world.

Cleantech Angel Network Invests In These Industries

Cleantech Angel Network Invests In Companies That Have Reached The Following Milestones

Cleantech Angel Network Invests In Companies With These Funding Needs

• Pre-money Valuation: USD500,000 - USD3,000,000
• Capital Seeking: USD100,000 - USD1,000,000
• Previously Raised: USD50,000 - USD100,000

Cleantech Angel Network Expects Their Investments To Generate

• Expected Revenue By Year 5: USD10,000,000 - USD50,000,000
• Expected Returns: 5x Investment - 20x Investment
• Expected Years to Exit: 3 Years - 5 Years
• Expected Years to Break Even: 3 Years - 3 Years

Cleantech Angel Network Investment Portfolio