Approach

Investment Approach:

North Coast Angel Fund invests in early-stage, technology-based ventures. Targeted industries include information technology, life sciences, advanced materials, and electronics and controls.

The typical NCAF initial investment is $250,000 with $200,000 held in reserve for possible follow-on investment. Most deals take the form of preferred equity securities and involve an NCAF member serving on the board. We often partner with other angel funds and/or VC investment groups since these early-stage ventures often need support of $1 million or more.

NCAF is most interested in investments where there is an opportunity and a willingness to leverage our members’ significant experience and expertise in key functions such as product development, sales, marketing, management, and follow-on financing.


Investment Criteria:

Throughout the decision-making process, NCAF’s investment criteria include:

  • Based in (or plan to be) in Ohio
  • Early-stage technology consistent with our investment focus
  • Addressable, unmet market need
  • Large and/or rapidly growing market size
  • Compelling and sustainable competitive differentiation
  • Reasonable expectation and plan to earn market share
  • Experienced management team
  • Management openness to mentoring and coaching
  • Credible and defined exit strategy
  • Market deal structure


Investment Process:

Companies interested in an investment from NCAF should read this page carefully.

  1. Interested companies complete the online submission form to begin the process.
  2. NCAF management pre-screens the submissions, meets with a subset of the companies, and invites a select group of investment candidates to present to the Investment Screening Committee. Interested companies must pay a $300 application fee prior to consideration by the Committee.
  3. The Investment Screening Committee conducts a preliminary assessment and determines whether to invite a prospective company to present to the full membership.
  4. Selected companies present to the NCAF membership for 10 to 15 minutes, followed by Q&A. Members vote whether to perform more extensive due diligence.
  5. A due diligence committee is assembled to meet with the company leadership, evaluate the company and market opportunity, assess prospects for success, and make an investment recommendation which is generally based on the standard NCAF term sheet.
  6. Members vote on whether to fund company.
  7. NCAF closes the investment, makes the opportunity available to its members for direct sidecar investment, and, if desired by the company, seeks to syndicate the deal to partner angel groups or other investors.

 
The NCAF investment process is designed to assess a company’s prospects for success and finalize an investment within 120 days after initial contact. Under certain circumstances, a final assessment may be delayed to address specific areas of concern.