PCN members meet once a month to view presentations from two to three companies that have been selected from the various business plans and executive summaries we receive each month. Since we have a diverse group of members, we do not focus solely on one industry. Rather, we look for companies who are in the early stage of rolling out a unique, preferably proven, product or concept. Our objective is to help talented entrepreneurs build lasting businesses of significant value and to participate as active investors. We accomplish this by mentoring and coaching those entrepreneurs in whose businesses we invest; we serve on their boards, provide contacts, and assist with strategic planning.
Our experience spans all aspects of growing successful companies — from the formative stages through the management of large enterprises. The PCN Membership looks to leverage its experience and competencies through careful investing in promising startups, and by providing its portfolio companies with outstanding coaching in marketing, business development, operations, finance, engineering and management.
Successful opportunities are those in which the management team has subject matter expertise and a deep understanding of their market. Additionally, the revenue model should be reasonable, and the product or service should offer a sustainable competitive advantage. Finally, the exit strategy should be within a 3 to 5 year window.
Should your presentation stimulate our members interest we will precede with our due diligence process. This will require several meeting with your management team to complete our documentation. Once finished, the findings will be presented to the membership for discussion. If accepted, we would then move to individual negotiations. PCN does not invest as a group, nor offer advice about investments or make any recommendations. Members invest individually and directly, without any legal pooling of financial resources.
The Funding Process
- Self-assessment. Before submitting your business plan for our consideration, you must determine if angel capital - and specifically capital from our group - is right is for your company.
- Online application. Our Application to Present is designed to extract the most important details about your business, so our internal review committee can decide if your company should: a) be invited for an initial screening presentation; b) be referred to one of our partners for help in evolving your business plan; or, c) be turned down as unlikely to receive funding from our members.
- Screening meeting. After reviewing your business plan, our internal committee will determine if your idea could be of interest to our members. If you succeed, you will be invited to present to the full membership. Be prepared to deliver a fifth teen minute investor presentation and answer questions posed by this group for an additional ten minutes.
- Presentation to membership. Following the screening meeting, you will be invited to present to our full membership. You will have the opportunity to elaborate on your business plan. Prepare to deliver a 15-minute presentation and address questions for an additional 10 minutes. After your presentation the PCN membership will decide if your project warrants moving forward to perform a due diligence study.
- Due diligence. During due diligence, interested investors will verify the statements made in your business plan, presentation, and financial projections. They will thoroughly research your team's background and track record. If you play an active role in facilitating this process, it will help to expedite a final investment decision.
- Term sheet negotiation. After successful completion of the due diligence process, interested angel group members will present a term sheet that defines the structure of the investment deal - including type of equity and board of directors representation, using industry standard terms and provisions. PCN members may invest as a group or individually.
- Funding & Beyond. When all parties are satisfied with the terms and language contained in the term sheet, the deal can be executed. But remember, closing the deal is only the beginning of the angel funding process. Now you have access to a network of value-added contacts and experienced professionals who can provide essential guidance for the growth and success of your venture. Adhering to the responsibilities at this stage will enable you to get the most from your angel relationship.