Great, the Boise Angel Alliance has invested in your company, but that’s only the start of the journey. So what happens next…?
To start, the Alliance will assign one member to be your Lead Contact. The Lead Contact may not be an employee or board member of the company, but may be a shareholder. In addition to the Lead Contact who will be primarily responsible for working with you, you will also 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. This ‘intangible’ is a significant part of the business model and culture of angel funding and we encourage all portfolio companies to take advantage of this tremendous resource.
We will expect to be kept informed with quarterly and annual financial statements and business plans, and ask that you at least annually present updates to our members. This is a great way to keep the members engaged and involved in your company, and can often expose new leads or business ideas for you. And remember that you will likely need additional capital. Keeping our members fully informed throughout our investment with you will be an important element in our decision as to whether to commit additional funds.
Often, re-approaching the Alliance for another round of funding may also be appropriate. Our Funds have specifically reserved a portion of their capital to meet the needs of our growing companies, and has criteria defined to help assess a follow on investment. This is managed by our Exit Committee:
The Exit Committee consists of the all the Lead Contacts. The Exit Committee will review any requests for additional funding or other assistance to portfolio companies. When the committee believes we should make an
additional investment, it will make a recommendation to the full membership.
Decision Criteria on Additional Funding.
The decision criteria for recommending an additional investment are:
a. Will an additional investment by the Fund increase the likelihood of a successful exit?
b. Will an additional investment by the Fund be material to the round?
c. Has management behaved consistently with the expectations of the Fund (e.g. reporting, responsiveness, honoring commitments)?
d. Economic performance aside, is the follow on investment important to the economy in Boise?
e. How does the follow on compare to current investment opportunities for the fund?
Updated December 1, 2012