Boise Angel Fund

Screening Criteria

 Please note we do not accept applications from companies located outside of Idaho.

The Boise Angel Fund welcomes inquiries from entrepreneurs. While there are no perfect deals, we would like to see the following:

  1. Involvement. We are not passive investors and expect to be involved with the entrepreneur, typically through board membership. We bring a network of 50+ experienced entrepreneurs who may be able to help the entrepreneur with developing strategy and making contacts.
  2. Location. The company should be headquartered in or have a material presence in Southwestern Idaho.
  3. Management. We expect management to have made a material financial commitment to the business in accordance with its own financial resources. Management should be experienced in the industry and in managing a rapidly growing business, or should have identified experienced management that plans to join the business contingent upon funding, or should be willing to accept the possibility that experienced management may be recruited.
  4. Business Concept. It should be based upon a unique and sustainable product, service or technology. Ideally the company will have generated some revenue to validate the concept. We do not invest in:
    • Retail stores
    • Movies
    • Farming
    • Real Estate
    • Restaurants
    • Mines
    • Airplane manufacturing
    • Automobile manufacturing
  5. Market. There should be a sizable potential market which provides the potential for the company to reach at least $10 million in sales within five years.
  6. Competition. Management should understand the competitive landscape and demonstrate how a sustainable competitive advantage will be created.
  7. Plan. There should be a sound business plan supported by monthly pro forma financial statements for three years including balance sheets, cash flow statements and income statements demonstrating attractive performance.
  8. Revenue. We typically invest in businesses that are generating revenue, and can provide customer references. If companies are pre-revenue, they must be prepared to demonstrate the market viability of their offering.
  9. Valuation. There should be a realistic and supportable “pre-money” valuation. Typically companies we consider will have a valuation of less than $2 million, usually substantially less.
  10. Investment. Our primary focus is companies seeking less than $1 million. Use of investment proceeds must be clearly described and should not include the retirement of debt.
  11. Exit Strategy. There should be a profitable exit strategy for the investors within five years. If the contemplated exit is sale of the company, management should have identified likely acquirers.

Other Important Information:

  • C Corporation. The Boise Angel Fund only invests in Chapter C Corporations and does not invest in Sub Chapter S Corporations or Limited Liability Companies. However, firms that are not currently Chapter C Corporations can request consideration with the understanding they will be required to convert to C Corp status before the deal closes.
  • Preferred Stock. The Fund typically invests in Convertible Preferred Stock.
  • Timeline. We invest after a thoughtful process and therefore we are not appropriate for companies with immediately capital needs. Our process typically requires two to three months from initial contact to deal close, but may take substantially longer depending upon the readiness of the company .

Help is available. If you have questions or would like to discuss your business prior to submitting an application, fund administrator Kevin Learned would be pleased to discuss your company with you. Contact him before submitting your application at kelearned@msn.com.

Updated February 21, 2010