The Women’s Capital Connection and Your Business

Angel investment is the “right” source of funding for a small proportion of entrepreneurial businesses. Angel groups follow several stages of review in order to make funding decisions.

Read through the listed documents carefully. Then, if you are interested in obtaining angel funding for your business, contact Kelly Sievers, Managing Director of the Women’s Capital Connection, at (913) 492-5922 for more information about the application process.

A: If you are a woman-led company (or have a woman in a C-level position) interested in exploring angel investing, please review and complete the application.

A: WCC uses the following criteria in selecting companies to present to the network:

• Have you already put your own money into your venture?
• Have you received money from your friends, family, strategic people who know you and/or your industry?
• Do you have a business opportunity with the potential for rapid, scalable growth within a reasonable timeframe? (Can you reach revenues of $20M+ within five years or so?)
• Do you have a compelling, well-articulated strategy for capturing a significant market share?
• Do you have proprietary technology, early market lead, or other strong barriers to entry?
• Is your management team (and if it's only you, can you surround yourself with advisors) strong enough to execute the business plan?
• Do you have a credible exit strategy for investors?
• Are you open to mentoring and coaching?

A: Neither WCC nor its members sign nondisclosure or confidentiality agreements for initial proposals. Also, neither WCC nor its members pay finder’s fees of any kind to any person or entity in any way connected with investments made by its members.

A: Once a proposal is received by WCC, it will be reviewed by a pre-screening team. Based on the team’s review of the opportunity, they may:

• ask for a meeting in order to gather additional information about the company;
• recommend that the entrepreneur present at a Screening Committee meeting;
• determine the company is unlikely to receive WCC funding.

Regardless of the outcome, the application and Executive Summary will be posted to the members’ area of the website and will be accessible to all WCC members for review for 90 days. If a member indicates an interest in the opportunity, the entrepreneur will be contacted so that a meeting may be scheduled with the prospective investor.

A: After pre-screening, the application will be submitted to the Screening Committee. At this stage of the process, entrepreneurs will be asked to make a 15-minute presentation about their opportunity to the Screening Committee. This will be followed by a 15-minute question-and-answer period. Following the screening meeting, entrepreneurs will receive an email informing them of the committee’s decision.

Once a deal is approved by the Screening Committee, the entrepreneur will be asked to present again before the full membership of WCC at a member meeting. Two or more members of the Screening Committee will assist the entrepreneur with appropriate information to present at the meeting. If a presentation generates sufficient interest, it will proceed to due diligence.

A: During the due diligence review process, interested investors will analyze the company in great detail. Entrepreneurs will be provided with a list of information they will need to make available for review. Entrepreneurs will also need to make members of their management team available for discussions. Additionally, entrepreneurs will be expected to pay any legal fees associated with the review. These fees will be discussed with the entrepreneur in detail before the due diligence process begins.

A possible outcome of due diligence is that the entrepreneur will be asked to consider a Strategic and Business Plan Review. This might include reshaping the strategic plan, refining the product offering, expanding the management team, focusing the sales effort, etc. The due diligence team will report its findings to WCC members along with a recommendation. If the recommendation is to proceed with an investment in the company, a term sheet will then be negotiated with the entrepreneur.

A: Once WCC members have identified the amounts they wish to invest in an opportunity, a WCC member will negotiate the term sheet with the entrepreneur. WCC members’ terms of investment follow “standard” terms for financing developed over the years by venture capitalists and other sophisticated investors. These terms explain what is contemplated and what is prohibited.

At this point, the entrepreneur is ready for the final stage of Investment and Closing, where each interested member of WCC invests individually in the company and signs the appropriate investment agreement.

A: Following investment, WCC members will be available to assist the entrepreneur in a number of ways. WCC members can help identify and assess management candidates and board members. WCC can help craft the company’s financial strategy in raising follow-on capital and assist with customer acquisition and alliance building. They can also assist with issues involving organizational structure, sales, marketing, and distribution strategies, and other challenges entrepreneurs face in building a strong company.

In addition to WCC members, both the Women’s Business Center and the Enterprise Center in Johnson County are available to assist entrepreneurs. WBC and ECJC specialize in providing business development and support services to early-stage technology companies.

A: WCC prefers to invest in companies in the Midwest region. WCC will typically only consider investment in a company beyond that geographic region if the opportunity is in syndication with another angel network or investment organization.

WCC has two primary objectives:

• To present high return on investment funding opportunities to its members.
• To facilitate access to early-stage financing for high-potential women-led businesses and entrepreneurs.

• Mid-America Angels
• InvestMidwest
• Angel Capital Association
• Angel Investor News