Investing Process

A member of the BAN staff will prescreen companies to ensure they fit criteria for investing, including a small amount of due diligence to ensure the basic requirements are met. The Deal Term Sheet is negotiated by BAN staff at this stage, but may change later based on indications of interest.

Company provides a deal pitch to members of the BAN via an online medium such as Zoom. Other types of online media may be used at the discretion of BAN staff.

BAN Staff will ask the members to send indications of interest and amounts within a certain time. If the target company provides a go ahead, then proceed to step 4. If the target company decides not to proceed, the process stops or the Deal Term Sheet is changed and we repeat the process.

BAN Staff will form a due diligence committee of member volunteers and they will use the ACA checklist to perform due diligence. Each member of the committee will fill out opinion sheets. Members receive the due diligence documents for review.

Members provide final indication of interest to BAN after reviewing due diligence information and opinions.

Members receive the go ahead to execute deals either directly with the company or through an LLC.

Depending on the number of members that are going to invest, an LLC may be formed and members will invest through that LLC. (The costs associated with the LLC will be paid by the company we are investing in). If no LLC is needed, members will execute the deal directly with the company they are investing in.

A Mentor is assigned by either the BAN or MSU Entrepreneurship and Outreach Center (MSU ECenter.)

Company will typically form an advisory board, which BAN Members may participate in if selected and interested.

If the BAN receives a Board Seat as part of the investment terms, a member will be assigned. If no LLC is formed, we will use a member volunteer. If an LLC is formed to invest, the managing member of the LLC will be assigned. In either case if no volunteer comes forward, the President of BAN will be assigned.

The President of BAN, volunteer board member, or managing member of the LLC if one was formed to invest will begin regular tracking of the company’s progress and have the company report back to members.

We can determine if we need to make mentor or advisory board changes and can supply suggestions to the company to help it.

Nurturing our portfolio companies is an important use of the Bulldog Angel Network.

Follow on rounds may be needed to fund growth.

Exits usually take 3-5 years, as Angel investing is long-term investing.