FUNDING CRITERIA

FUNDING CRITERIA

Pasadena Angels works with companies that have the potential to build sustainable and successful businesses. Simply put, we are looking for companies with a solid proof of concept whose potential we can help to maximize. While we have invested in a wide variety of businesses and industries, we look for the following basic requirements when evaluating a venture:

United States Based Companies
Our focus is on supporting business ventures in California. We believe strongly that Pasadena Angels can add real value by investing in our region to nurture growth, promote prosperity, and foster collaboration. As opportunities have expanded in our increasingly connected worlds, U.S. applicants located outside of California that meet our investment thesis are also encouraged to apply.

Stage

Seed +. The company should have at least a prototype with customer discovery (i.e., a minimum viable product (MVP) from The Lean Startup). The more traction you have, the stronger your chances to advance through our process. Companies that have customers and revenue will generally attract more interest from our members. However, in some circumstances, there are alternate metrics or qualifiers that can help to mitigate when these attributes are in development.

Scalability

Must be able to grow to a $20+ million dollar company within 3-5 years.

Industries

We are open to all industries; but, our most successful companies have been in technology, especially in the software as a service (SaaS) business.

Management Team
We are interested in companies that are driven by an energetic / talented team of founders and advisers. We particularly look for a track record of successful performance, and leadership with a passionate commitment to the company's vision. The team should have experience in their current venture's industry.

Market Opportunity
We invest in ventures that are focused on a large market opportunity with sufficient untapped potential. Your business strategy must reflect a realistic approach for its potential to capture a significant share of your target market.

Proof of Concept
Your venture will have progressed beyond product proof-of-concept to clearly demonstrate its feasibility. A start-up manufacturer, for example, will have progressed beyond early prototype to development of a production design.

 

Proprietary Assets
Your company should be able to demonstrate its key value proposition and competitive advantage. The venture should possess proprietary assets, intellectual property, trade secrets and / or processes (i.e., a "moat") that distinguish it from the competitors.

 

Rapid Growth Potential
Your company should have a scalable business design with solid prospects for rapid growth. In particular, your company should have a clear strategy for generating profits, and managing revenue sources effectively.

 

Market Differentiation
We are looking for companies that are working toward compelling and defendable market differentiation. Your company will be focused on developing a strong business presence and establishing clear dominance in your market.

 

Customer Insight
We are interested in companies that are pursuing marketing and sales strategies based on a keen understanding of their customer base. You must know who your customers are, their needs, and how to reach them.

 

Realistic Financials
You are realistic about your financing plan to fund growth toward profitability. Your venture should have a clear, actionable plan and a realistic forecast of revenue projections that contemplate optimistic, pessimistic and most likely scenarios, as well as the rationale and underlying assumptions for each.

 

Exit Strategy
Your company will be open to an exit strategy that provides strong returns. Because early-stage investment has a significant level of risk, our members look for a promising return within a reasonable period, with a clearly defined exit strategy.

 

If your company meets the above criteria, we encourage you to apply to the Pasadena Angels for funding and welcome the opportunity to review your application.