WVC W2 Fund
About this Program
A group of angel investors (mostly from Oregon) who enjoy investing in and mentoring early-stage/high growth startups.
Our Investment Focus
Willamette Valley Capital invests between $25,000 and $250,000 in early stage companies. We are seeking companies with an established proof of concept that are poised for scalability.
While the merits of each investment will vary, we evaluate your venture according to the following criteria:
As angel investors, we invest in teams first and products/ideas second. Is your management team experienced, driven, coachable and willing to collaborate on decisions with outside investors and partners? We look for teams of high-quality entrepreneurs with a track record of leadership and performance – either in the company’s specific industry or in prior entrepreneurial ventures. 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 experienced angel investors.
We invest in solutions that address major market problems for significantly large addressable target markets. Do you have an identifiable market segment? Is there a demonstrable and significant demand for your solution? Have you launched an MVP (minimum viable product)? Is the projected spending in your product category large and growing?
Go to Market Strategy:
Do you plan to achieve widespread market penetration for your products and services? How will you do this as efficiently as possible? Will you create an internal, direct sales team, or will you rely on external channel partners? Have you conducted market research that backs your business development strategies?
We are looking for well thought out, logical and reasonable revenue plans. Most financial plans do not achieve their revenue projections, so we will evaluate plans under the assumption of a revenue shortfall. Consequently, gross margin and cash positions are critical variables to manage.
We typically invest in pre-money valuations that are below $5 million. A key reason for this is that it gives the investor the potential for a nice return at a modest exit valuation. It also allows for some protection against future round dilution.
Use of Funds:
Funds must be used to accelerate your company’s achievement of key milestones that increase the company’s value. We often fund activities that include research and product development, building a sales and marketing infrastructure and hiring key team members.
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?
Have you identified potential competitors? Do you understand your company’s differentiation points? Will true barriers to entry help your company to maintain a competitive advantage? Your company should 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.
We prefer to invest in first-of-a-kind new ideas, rather than incremental enhancements to common products and services. Is this a nice-to-have, or a need-to-have product or service? Further, we avoid science projects that don’t demonstrate a clear path to commercialization. Any breakthrough innovation must be accompanied by a strong business plan.
Our members typically seek returns of ten to twenty times their initial investment, depending on the riskiness of the plan. 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? Do you have any comparables to show your potential acquirers are interested in your space?
- Business Products
- Business Services
- Chemicals and Chemical Products
- Clean Technology
- Consumer Products
- Digital Marketing
- Electronics / Instrumentation
- Financial Services
- Food and Beverage
- Healthcare Services
- Internet / Web Services
- Marketing / Advertising
- Media and Entertainment
- Medical Devices and Equipment
- Retailing / Distribution
- Oregon, US