OUR FUNDING PROCESS

IT'S ABOUT GETTING TO KNOW YOU

AND YOUR BUSINESS BETTER.

Should you meet our funding criteria, we  invite you to access the Gust platform for start-up funding to complete and submit your application online. Typically we will contact you about your company within 1-3 weeks.

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Your application materials will then be reviewed at our monthly Pre-screening Meeting. Companies that fit the overall investment interests and goals of our members will be selected to move to the next phase. This is a highly competitive process. We typically have over 50 companies apply to us monthly.


If your company is selected, you’ll be invited to make a presentation in person to our Screening Committee. Screening meetings are held on the last Wednesday of each month at the Business Technology Center of Los Angeles County in Altadena. We will invite the top two companies to present to our entire membership at our monthly breakfast meeting on the first Wednesday of each month.

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Your presentation to our full membership at our breakfast meeting will include an initial due diligence of interested members. The following week, potential investors will then exercise due diligence by taking a closer look at your business plan and projections, track record and background.

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When the due diligence process is completed, interested members of our group will present a term sheet outlining suggestions for the investment deal, using industry standard terms and provisions.

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If all parties decide to move forward, the work of finalizing the deal and executing the plan starts. But remember, this is only the beginning. The collaborative work we’ll do depends on open lines of communication and teamwork to achieve success.

FUNDING CRITERIA

Review our Funding Process Are you considering applying to The Pasadena Angeles for mentorship and funding? It’s our hope that the following questions will help you clarify your objectives, as well as help us better understand your capital needs.
Please complete this Self Assessment exercise by asking yourself these questions?

  • Is my business based in the United States?
  • Am I ready to collaborate with So Cal’s top business leaders?
  • Am I open to an exit strategy that provides strong returns?
  • Has my company progressed beyond proof of concept?
  • Do I have a proven track record of entrepreneurial success?
  • Do I have sound financials and solid prospects for rapid growth?
  • Does management inspire our team with exemplary leadership?
  • Does my company have proprietary assets and/or ideas that give us the competitive edge?
If you answered “yes” to the questions above, we’d like to hear from you. Let the Pasadena Angels help you create your unique model for success.



APPLYING THROUGH GUST

Why do The Pasadena Angles rely on Gust?
Gust provides a secure, private platform where investors set their deal interest, ratings, manage and share deals.
Gust is the next generation of the industry standard deal flow management platform that has been developed and refined by Angelsoft for more than seven years. Over 750 business angel groups, investment networks and venture capital funds already rely on it, and they have all been upgraded to Gust prior to the platform’s public launch. This has given them the opportunity to experiment with Gust’s new features and interface, and provide detailed advance feedback. The new Gust tools for entrepreneurs seamlessly integrate into the existing investor-side tools that have already become the industry standard.



PRE-SCREENING

Each year, approximately 600 companies apply to The Pasadena Angels for funding and mentorship. In general, more than 150 companies are screened annually. If your company is selected for the next phase of the investment process, you’ll be invited to make a presentation to our Screening Committee. This is your opportunity to shine: tell us why you are passionate about your idea and capture our interest. Screening meetings are held on the last Wednesday of each month at the Business Technology Center of Los Angeles County in Altadena. Companies that generate interest at the Screening Meeting are then be asked to make a second presentation to our full membership at a Breakfast Meeting, held on the first Wednesday of the month. SCREENING MEETING GUIDELINES



BREAKFAST PRESENTATION

If You Are Invited to the Breakfast Presentation If you generate sufficient interest during Screening, you will be invited to present at our monthly breakfast meetings. The Breakfast Presentation is your opportunity to present your plan to our full membership. Breakfast Meetings are held on the first Wednesday of the month. Because each member of the Pasadena Angels makes their own investment decisions, subsequent meetings will be established after the Breakfast Meeting presentation for those who have a continued interest in your company, and the Due Dilligence begins. Each month, two companies are invited to make their presentation to our full member group.



DUE DILIGENCE

In the Due Diligence phase, interested investors take a closer look at your business plan and projections, track record and background to verify your positions and assess your capital needs. We will also conduct a full background check on the founders. Together, we’ll engage in initial discussions concerning valuation and terms to make sure that we both “on the same page.” Your engagement and involvement in this part of the process will help us make the right invest decision, and we encourage you to take and active role as your own advocate during this part of the investment process.



TERM SHEET NEGOTIATION

With Term Sheet Negotiation, we enter the final phase of the investment process and get down to the details involved in finalizing our deal. Initially, key details are outlined during the Due Diligence phase of the process. Next, we’ll carefully consider the amount of capital under discussion, and determine the valuation of the potential investment. The Term Sheet sets forth terms and conditions of the proposed investment from both a business and a legal perspective. The key offering terms generally include the following:

  1. Amount of capital raised,
  2. Price per share,
  3. Pre-money valuation,
  4. Liquidation preferences,
  5. Voting rights,
  6. Anti-dilution provisions, and
  7. Registration rights.
Ultimately, we seek to achieve a win-win outcome for all parties.



AFTER THE DEAL

Next Steps – After the Deal Once the terms of the investment are implemented, it’s time to set the plan in motion. We encourage entrepreneurs to tap into the collective experience of our membership. The members of the Pasadena Angels have strong ties to local business and professional communities. Their experience, relationships and guidance can significantly contribute to an emerging company’s success. Members of the Pasadena Angels serve on advisory bodies or boards of directors of companies that are funded after proceeding through our review process. This member participation facilitates the strategic and financial planning and efficient plan execution required in the initial growth phases of new business ventures. We encourage you to take advantage of the unique qualities offered by a close working relationship with The Pasadena Angels:

  • Relationships with venture capital firms and other angel groups
  • Potential for co-investment and/or later-stage investments in an enterprise
  • Interim executive management and consulting on request
  • Advice with sales, marketing, recruiting, and building strategic relationships
  • Access to cost-effective business facilities and support services
In return, we expect full and regular financial reports and business updates.