Thank you in advance for considering applying to Central Texas Angel Network (CTAN).
CTAN is one of the largest Angel Investing Networks in the nation with 160 members, and $82.6 million invested in 142 companies. We run 5 formal Funding Cycles per year. There are a few things we’d like you to consider prior to completing your application. (We also recommend you attend our free Mentor Hours before applying to CTAN.)
CTAN specifically evaluates companies that fit the following criteria:
- Unique and disruptive – Something truly unique that is not a “me too” type of product or service, and stands out from competition.
- Scalable – Able to grow and expand quickly. We do not fund “lifestyle businesses” or individual franchises.
- Defensible – Either through intellectual property or team skill, the business is defensible from copycats.
CTAN charges an application fee of $250 due prior to submitting your application. Important: CTAN does NOT offer refunds. We recommend you clearly understand the funding cycle process, as well as the pros and cons of applying to an angel group before submitting an application.
Each Funding Cycle is 10 weeks long. Please take a moment to review the structure below:
WEEK 1: Application Deadline & Funding Cycle Forum
Companies apply via ProSeeder, our online platform. Among other questions, entrepreneurs classify their business in one of five industry sectors: B2B Software, B2C Software, Hardware/Other, Life Sciences, or Consumer Products. CTAN members group themselves into Sector Interest Groups (SIGs) based on their interest or expertise in those sectors.
Funding Cycle Forum: This is an exclusive, two-part event for those companies applying to the current funding cycle, which includes 1) a short workshop at which entrepreneurs learn how best to navigate CTAN’s process and pitching to investors, and 2) an opportunity to ask questions of CTAN investors in your industry group. After this event, you’ll have the weekend to update your application using the investor feedback you received, prior to the following week’s online voting by CTAN members.
WEEK 2: Application Review & Voting
CTAN members review entrepreneur applications and vote online for companies that pique their interest. If enough members in each Sector Interest Group (SIG) express interest in a company, we invite the company to pitch to members of that SIG the following week.
WEEK 3: SIG Night
Selected companies pitch in person to each SIG, with time for Q&A with investors. If you are unable to attend in person, you may send in a pre-recorded video pitch, then we’ll phone you in for Q&A. At the end of the event, our members decide if they are interested enough to move into due diligence. If the answer is yes, we will ask you to fill out our Initial Due Diligence Checklist. After reviewing it, we’ll schedule a due diligence meeting with you.
WEEK 4: Initial Due Diligence Checklist
Selected companies are tasked with uploading a completed Initial Due Diligence Checklist to their deal room on ProSeeder on Monday. This serves as the basis for Staff Review the following two weeks.
WEEKS 5-6: Staff Review
Selected companies meet with CTAN staff and select members of the SIG to ensure there are no “deal killers” (such as $500k CEO salaries, etc.) that would prevent a deal from going through. We prefer in-person meetings, but we can accommodate remote meetings as well.
WEEK 7: Showcase Meeting
Companies that make it through due diligence are invited to present to the broader CTAN membership at the Showcase Meeting. If enough CTAN members express continued interest, we’ll schedule 2 more due diligence meetings.
WEEKS 8-9: Due Diligence Meetings
Selected companies meet with CTAN staff and the interested group of CTAN investors. From the interested investors, a Deal Lead needs to be chosen to continue moving through our process. This Deal Lead will work with CTAN staff and the company to better understand their business model and value proposition. In between meetings, we conduct customer reference calls, competitive analysis, market sizing, team reference calls, etc. Again, we prefer in-person due diligence meetings, but we can accommodate remote meetings as well.
WEEK 10: Term Sheet
The member Deal Lead works with the company to arrive at a term sheet. Once a term sheet has been agreed upon, the due diligence findings are made available to members and we soft-circle interest from the full membership. If we are able to soft-circle interest, we begin working with legal counsel to close the deal.
While it’s not a hard requirement, many CTAN investors have a strong preference for Texas-based companies.
CTAN charges an application fee of $250 due prior to submitting your application This fee provides you the following:
- The ability to attend a three hour Funding Cycle Forum in which experienced angel investors explain the do‘s and don’ts of pitching to investors.
- Also at theFunding Cycle Forum there is a presentation by an entrepreneur who has successfully received funds from CTAN explaining the process from his/her point of view.
- Entry to CTAN’s Funding Cycle where your application will be sent to the 165 investors in our network.
- Two attempts at the Funding Cycles of your choosing, if you don’t receive funding on your first attempt.
If CTAN members invest $200,000 or more in your company, CTAN collects an Administrative Fee of $5,000 upon closing. If CTAN invests $400,000 or more in your company, CTAN collects an Administrative Fee of $7,500 upon closing.
If you have any questions, email us at director[at]centraltexasangelnetwork.com.
“It only takes 1…”
It really does only take one interested investor to make a huge difference. While a majority of CTAN-funded companies have progressed through the entire funding cycle, we typically see some additional companies receive funding each cycle which didn’t make it through the entire process. Perhaps the company didn’t receive enough votes, but a handful of members remained intrigued. We do not prevent interested members from conducting due diligence and investing outside of the process; in fact, we encourage it — as long as the company is not moving forward in CTAN’s formal funding cycle. We seek to help as many companies get funded by our member investors as possible.