What we don’t typically invest in
The Southwest Angel Network normally does not typically invest in:
- Class III medical device companies
- Investment funds
- Consumer packaged goods, foods or nutritional supplements
- 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 whose 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 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 in your home region who will have a board seat)
- Companies whose business success is dependent upon an ICO (Initial Coin Offering)
Additionally, if your technology includes blockchain, please be prepared to describe specifically and in detail why blockchain is appropriate for your applications and to clearly indicate why blockchain’s disadvantages and challenges are not detrimental to your solution.