We are excited to share some BIG news: CTAN has significantly restructured its funding cycle for the first time in more than five years. Below are details of the new process, along with our 2017 funding calendar.
Our first funding deadline of 2017 is coming up soon on Wednesday, January 4. Will you help us spread the word to entrepreneurs and colleagues in the startup community? If so, here’s suggested text…
FUNDING DEADLINE: Wed, Jan 4 is @CTANAngels first application deadline of 2017 with new process! http://centraltexasangelnetwork.com/entrepreneurs
Other social media:
Entrepreneurs: Don’t miss Central Texas Angel Network’s next startup funding deadline on Wednesday, January 4! And check out their restructured funding process with sector groups!
If you’d like to refer any entrepreneurs directly, please introduce them to Investment Manager, Mark Thorsen (firstname.lastname@example.org).
Many thanks for being a part of our endeavors this past year, and best wishes for a Happy New Year!
CTAN RESTRUCTURES FUNDING CYCLE
After an intensive internal process, CTAN has restructured its funding cycle for the first time in more than five years. This significant change is the result of benchmarking other angel groups, surveying our members, reviewing previous entrepreneur surveys, and holding member focus group meetings.
The goals of the new structure include:
1. Capture more deals and side deals into the funding cycle
2. Reduce time to decision to less than 10 weeks
3. Increase member engagement
4. Eliminate redundancy
In essence, the new process allows CTAN members to dive deep into sectors they’re interested in, while still having the opportunity to meet and invest in companies from other sectors. All incoming deals will separate into five categories, called Sector Interest Groups (SIGs):
• B2B Software (B2B = Business to Business)
• B2C Software (B2C = Business to Consumer)
• Life Sciences
• Consumer Products/Other
Companies that proceed successfully through a funding cycle stay within their sector all the way through due diligence. The top companies from the sectors (with completed due diligence, deal terms drafted, and initial soft-circle) will present at a Showcase Meeting near the end of the funding cycle. The breakdown of the 10-week funding cycle is as follows:
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, Life Sciences, or Consumer Products / Other. 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) mentor hours during which entrepreneurs have the opportunity to meet member investors in a speed-dating style format.
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 Screening Meetings
Selected companies pitch in person to each SIG, with time for Q&A with investors. We can accommodate remote pitches upon request, though we do not recommend this. At the end of the SIG Screening Meeting, the members in attendance decide if they are interested enough to move into due diligence, and whether there’s a member willing to be Deal Lead to lead the due diligence effort. If the answer is yes to both questions, then we move into three weeks of due diligence with the company.
WEEK 4-6: Due Diligence by Staff, SIG, Deal Lead
CTAN staff, the member Deal Lead, and other members of the SIG conduct due diligence, in which we work with the company to better understand its business model and value proposition. Due diligence will include customer reference calls, competitive analysis, market sizing, team reference calls, etc.
WEEK 7: Term Sheet & Soft-Circle
The member Deal Lead works with the company to arrive at a term sheet and soft-circle investment interest from the SIG. If we are able to soft-circle interest, we schedule the entrepreneur to present to the broader CTAN membership at the Showcase Meeting.
WEEK 8: Showcase Meeting
Companies in which SIGs have soft-circled interest present in person at the Showcase Meeting to the broader CTAN membership. The due diligence findings are made available to members, and additional members may indicate investment interest at this point.
WEEK 9: Circle Additional Member Interest
WEEK 10: Closing (working with legal counsel to close the deal)
Entrepreneurs can learn more and apply for funding HERE. Next application deadline is January 4, 2017!
CTAN ANNOUNCES 2017 FUNDING CALENDAR
As part of the new funding cycle process, CTAN announces our calendar for 2017. The calendar is subject to change as necessary.
Funding Cycle 1
Application Deadline: Wednesday, January 4
Funding Cycle Forum: Thursday, January 5 (for CTAN members & startup applicants)
Member Voting: Monday, January 9-13
SIG Screening Meetings: January 17-20
Due Diligence (Staff, SIG, Deal Lead): January 23-February 10
Negotiate Term Sheet & Soft-Circle Interest: February 13-17
Showcase Meeting: Wednesday, February 22 (not Thursday, February 23)
Circle Additional Interest: February 24-March 3
Closing: March 6-10
Funding Cycle 2
Application Deadline: Wednesday, March 1
Funding Cycle Forum: Thursday, March 2 (for CTAN members & startup applicants)
Member Voting: March 6-10
SIG Screening Meetings: March 13-17
Due Diligence (Staff, SIG, Deal Lead): March 20-April 7
Negotiate Term Sheet & Soft-Circle Interest: April 10-14
Showcase Meeting: Thursday, April 20
Circle Additional Interest: April 21-28
Closing: May 1-5
Funding Cycle 3
Application Deadline: Wednesday, May 3
Funding Cycle Forum: Thursday, May 4 (for CTAN members & startup applicants)
Member Voting: May 8-12
SIG Screening Meetings: May 15-19
Due Diligence (Staff, SIG, Deal Lead): May 22-June 9
Negotiate Term Sheet & Soft-Circle Interest: June 12-16
Showcase Meeting: Thursday, June 22
Circle Additional Interest: June 23-30
Closing: July 3-7
Funding Cycle 4
Application Deadline: Wednesday, August 2
Funding Cycle Forum: Thursday, August 3 (for CTAN members & startup applicants)
Member Voting: August 7-11
SIG Screening Meetings: August 14-18
Due Diligence (Staff, SIG, Deal Lead): August 21-September 8
Negotiate Term Sheet & Soft-Circle Interest: September 11-15
Showcase Meeting: Thursday, September 21
Circle Additional Interest: September 22-29
Closing: October 2-6
Funding Cycle 5
Application Deadline: Wednesday, September 27
Funding Cycle Forum: Thursday, September 28 (for CTAN members & startup applicants)
Member Voting: October 2-6
SIG Screening Meetings: October 9-13
Due Diligence (Staff, SIG, Deal Lead): October 16-November 3
Negotiate Term Sheet & Soft-Circle Interest: November 6-10
Showcase Meeting: Thursday, November 16
Circle Additional Interest: November 17-24
Closing: November 27-December 1
CTAN Investor Mentor Hours (in addition to mentoring at Funding Cycle Forums)
Thursday, February 16
Thursday, April 13
Thursday, June 8
Thursday, September 7
Thursday, October 19
Thursday, November 30