Apply For Funding
The deadline for applying for our next funding cycle
is the end of the day on Friday, July 28th.
Our network of investors looks for for-profit enterprises that can become profitable while solving significant societal challenges.
How do we think about social impact?
A positive response to all three of the statements below is a good indicator that your company meets our social-impact criteria.
- Your company improves health care or educational outcomes, protects the environment, or improves financial security, especially when these benefits accrue to disadvantaged groups in our society.
- If you were to explain your company’s impact to a social-worker, she or he gets a big smile on their face and say “That is so cool!”
- Your company’s home page highlights your social-impact benefit or mission.
Suggestions for a Successful Application
You might assume that social-impact investors will be satisfied with a lessor financial return than investors can earn in other angel networks. After all, supporting social-good reminds us of philanthropy. The Southwest Angel Network believes that in order to have the biggest social impact, it needs to attract the largest possible number of angels. How do we do that? By combining significant social-impact and strong business results.
In summary, in order for your company to be successful in raising funds from us, you must convince the investors of two major things:
- Your primary business mission is to address a significant societal challenge.
- Your business has a convincing path to profitability. Among the important factors leading to profitability is the fact you solve a truly significant or painful problem for customers who have a budget to pay for a solution to that problem. Your potential customers respond to your company with “we must buy your solution“. A “nice to have” response is not generally fundable. Don’t confuse paying customers with impact beneficiaries. They may be different.
Your pitch deck should closely follow the Investor Presentation Outline.
The Southwest Angel Network Impact investors strongly prefer:
- Companies with a strong management team which has significant experience in the market segment that they are attacking
- Early-stage companies that have gone to market and achieved some degree of traction or revenue. This is a important criteria since most of the other angel networks that we will work with to syndicate funding for your company will require early traction/revenue. If your company is pre-revenue, you are expected to have completed world-class market validation.
- Companies that expect to achieve significant annual revenues within the next five years.
How we Invest
Investment decisions are made by individual investors; the network does not have an investment fund.
The network runs four funding cycles per year. We normally don’t consider companies outside of these cycles.
The Southwest Angel Network is generally funding stage agnostic, and has invested in the past from pre-seed through series B.
The Southwest Angel Network is open to a range of investment instrument types, including:
- Convertible debt or equity for companies that we believe will achieve a significant exit via acquisition or IPO.
- Royalty-based financing or other debt instruments for companies that we believe don’t have the potential for a significant exit.
What we don’t typically invest in
The Southwest Angel Network normally does not typically invest in:
- Medical device companies
- Investment funds
- Services-based companies, as opposed to product-based companies. Services companies face challenges in scaling significant revenue
- B2C companies serving the local market AND where many competitive alternatives are readily available to the consumers. A new fitness club or a food-delivery service might be examples.
- Venue-based businesses
- Companies with the basic mission is to solve a problem experienced by most businesses, and where the solution can incidentally also be used for social-impact purposes
- Socially-responsible or B Corp companies who are not addressing a significant societal challenge as a primary company mission
- Companies whose sole social-impact is limited to sharing a portion of their profits with charities
- Companies outside of Texas (unless you have a signed term sheet from a sophisticated lead investor in your home region who will have a board seat)
- Companies currently raising a million or more dollars (unless most of the raise is already committed)
Not yet ready to apply and would like some help?
If your company is not yet ready to submit an application that meets the guidelines above, we would still like to learn about your social impact company. The Southwest Angel Network may be able to provide encouragement and mentoring that will enable your company to define a sustainable business model and get ready to apply. There are a number of resources available in Austin to help you develop your start-up.
Funding Cycle Calendar
|Third Quarter 2017 Schedule||Begin||End|
|Deadline for companies to apply, sending application & existing pitch deck||Friday, July 28|
|Down selection, to 8 applicants||Monday, July 31||Thursday, August 3|
|Update of presentations using recommended outline & 1st review with Exec Director||Friday, August 4||Wednesday, August 9|
|Webex dry-run pitches: Down selection to 3. 15 minutes to pitch and 45 minutes of discussion||Thursday, August 10||Tuesday, August 15|
|Company updates presentation & final review with Executive Director||Wednesday, August 16||Monday, August 21|
|Evening Dinner Pitch Event – 15 minutes to present and 15 minutes of Q&A||Tuesday, August 22|
Please understand that if your company is accepted to pitch at a quarterly dinner pitch event the CEO is required to attend the meeting in person, unless other arrangements are agreed to at the time that you apply.
Applications are made using the ProSeeder platform. Please apply by taking two actions:
- use the link below to fill out the application form, and
- upload your current investor presentation onto ProSeeder.
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