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Step 1. Application - Companies wishing to be reviewed by the Twin Cities Angels must first submit necessary information, online (information will not be accepted via the US Mail and an initial meeting or phone call is not needed, although questions not addressed on this website are welcome via email). - see How to Apply for details.
After you submit your package of information, you will be contacted if there is sufficient interest in your proposal to advance to the pre-screening process. If there is sufficient interest, you will be assigned a pre-screening advocate within Twin Cities Angels. Based on the advocate’s review of your companies product, market and financials, he or she may (1) recommend that you present at one of our screening sessions, (2) determine that you are not likely to succeed in your proposal to the Twin Cities Angels, or (3) refer you to someone who may be able to help you better prepare you to be eligible for our further consideration. During the pre-screening process, we will also provide you with guidance on your presentation. Your mission is to captivate the attention of your pre-screening team looking to find one or more "champions" who will communicate why you may be an excellent candidate for further consideration by the Twin Cities Angels.
Step 2. Posted to Website as Current Opportunity - For companies that pass initial screening, the information they provided will be posted to a secure area of the Twin Cities Angels Website, viewable only by Twin Cities Angels' members.
Step 3. Screening Committee - The Twin Cities Angels Screening Committee will review the information provided by submitting companies for qualification as an interest to members of the Twin Cities Angels. Some companies may be contacted by a member of the committee to provide additional details. We hold screening sessions approximately monthly, in advance of each Member meeting. Each screening session is attended by a group of Twin Cities Angels members. You may be asked to attend the Screening meeting to make a presentation or answer questions. Presentations are made at our dinner meetings. If invited, there is no fee to attend.
Step 4. Presentation at Member Meetings - If significant interest is shown for a particular company, the company will be contacted to present a 15-minute PowerPoint presentation at a scheduled Twin Cities Angels dinner meeting. Additional questions and discussion of your company will also be included in this meeting. Following the presentation and Q&A, the membership will discuss and vote on the attractiveness of an investment in your company. We will contact you shortly thereafter with a list of questions, and outline of our information and meeting needs.
Step 5. Due Diligence Process - A Twin Cities Angels member will be assigned to lead the due diligence process for a company that members affirmatively vote for proceeding into due diligence. At the conclusion or in parallel with due diligence we will negotiate deal structure and terms with each company.
The due diligence process is designed to uncover potential “show stoppers” – reasons not to invest. Potential areas of concern that due diligence would uncover are poor ratings in scientific analysis, untenable pre-existing agreements, disruptive or complex shareholders issues, inadequate IP protection, excessive current liabilities, lack of skilled management or leadership, and/or inappropriate use of proceeds.
During the due diligence process Twin Cities Angels members will analyze your investment opportunity across a number of parameters including:
- Investment Opportunity – detailed business plan analysis, competition, and current capitalization;
- Personnel – management and board background and reference checks;
- Financials – detailed financial analysis;
- Scientific Review – independent peer review as to the merits of the technology;
- Intellectual Property – detailed review of patent claims and covenants;
- Organization – review of articles of incorporation, partnership agreements and affiliations; and,
- Legal – review of all customer contracts and shareholder agreements.
Step 6. Investment – Once due diligence is completed, at the next member meeting members will vote on the investment, terms, and amount of the investment.
Twin Cities Angels investment follow "standard" terms for financings developed over the years by VCs and other sophisticated investors. These terms explain what is contemplated and what is prohibited (most of the time many of those events never surface). Please read the sections on Valuations and Term Sheet accessible from this page's left navigation bar under Resources.
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