Entrepeneurs

Investment Overview

The CalCEF Angel Fund investment process will use disciplined technology and operation analysis methodology. The Angel Fund will implement this process through a series of thoughtfully considered steps, which also provide sufficient flexibility to fit the unique nature of young companies. This entire process will focus on building value in each portfolio company to maximize the likelihood of company readiness for subsequent funding and anticipated commercialization. This process reflects the Angel Fund’s:

  • Detailed process for identifying, reviewing and selecting investments, starting with the Angel Fund’s philosophy on investment and investable companies, bringing clarity to our overall investment approach and building a strong, diverse portfolio
  • Disciplined approach to investments through active participation in portfolio company growth with hands-on interaction, directed investments, education, and use of CalCEF’s strong relationships with researchers, market leaders and end-users
  • Robust relationship with subsequent financing resources, in particular, venture capital funds focused on clean energy, as well as the end-user market

 

Investment Philosophy. The Investment Committee will consider a broad range of companies in the clean energy and technology market from alternative energy sources to energy efficiency systems.  The goal will be to build a diversified portfolio, which gives an opportunity for broader potential positive impact on the growth of the clean energy industry, and to increase potential Fund success through this diversification.

Submission Process

The Angel Fund requests that all entrepreneurs seeking consideration for funding submit their information as directed below.  Failure to follow this process may result in review delay or non-consideration of an application.

  1. All submissions are made through the link below to Angelsoft.  You will be linked to a site that is visible only to the Angel Fund.  You will have the ability to periodically review your submittal, but will not be able to see any other information, including but not limited to identification of the Angel Fund’s limited partners. 
    1. All submissions will be made available to limited partners.  Their review of the materials is purely voluntary and not part of the Angel Fund review process.
    2. You MUST submit all information requested.  You may submit information to the Angel Fund, by either:
      1.  Completing all questions shown after logging onto the Angelsoft site; or
      2.  Providing the company summary information and submitting an executive summary and/or presentation.  Your executive summary may not exceed five pages.  

       PLEASE DO NOT SUBMIT A FULL BUSINESS PLAN AT THIS TIME

      Regardless of the submittal alternative, you must provide the following information:
      • Management team and respective qualifications to build your company
      • Market, including need, size, growth rate, customer segmentation and structure
      • Current and prospective customers as well as your sales and marketing strategy
      • Technology, including competitive advantage, barriers to entry and market differentiator
      • Competitors and comparison of technology
  2. We will review the material submitted and will inform you by phone or email if we would like to pursue further discussions.  Typically, this step should not take more than two to three weeks, but can vary depending on workload.
  3. The flowchart to the right provides an over view of the Angel Fund’s investment decision-making process, from the entrepreneur’s perspective.  The Angel Fund will be conducting other activities related to analysis and due diligence not specifically described below.  The timeframe for all activities cannot be predicted nor estimated.

    4. Investable Company

    While few companies will have all of the following attributes, the Angel Fund will be assessing potential investments against certain defined criteria, which includes the following:

    • Seasoned, capable management team.  The team must be passionate about its technology and industry, as well as being open to mentoring, i.e., coachable.
    • Clear path to profitability with realistic financial projections and valuation, with good margins
    • Scalable business with sufficient market cap to meet minimum ROI requirement
    • Proof of market through third-party validation and market research
    • Broad-platform technology, which can meet the needs of more than a niche market
    • Clear ownership or license of technology necessary for commercialization
    • Compelling competitive advantage that meets an existing market need
    • Market access strategy clear, including understood distribution system
    • Clear, well-articulated exit strategy
 
Investment Flowchart