1. Investment Strategy
The i2n Angels was founded to help fill the void of early stage funding that is available to startups and entrepreneurs across southeastern Pennsylvania. Members of i2n Angels identified, understand and want to address this lack of funding specific to early stage companies.

As a result, the strategy is to support early stage tech-focused entrepreneurs and startups with seed funding of between $50,000 and $500,000. At least three (3) members of the i2n Angels must agree to invest a minimum of $10,000 each in order for the group to agree to create and manage an SPE for a specific investment. The i2n Angels Operating Committee my adjust these parameters based discussion and agreement from the Membership. Note that the range of $50,000 to $500,000 is flexible and customizable based on the wishes of the members.

2. Investment Process
The i2n Angels engages in a thoughtful process to select startup companies with potential for commercialization and growth, and that will benefit from the Group’s expertise and financial involvement. The process is straightforward:

a) Attract, Identify & Invite: working through i2n Board, Partners, and Supporters, i2n Angels members, CCEDC and its industry partnerships and initiatives, and other partner organizations, we’ll attract, identify and invite entrepreneurs and early stage startups from across southeastern Pennsylvania to consider applying to present to our i2n Angels.

b) Apply to Present: those entrepreneurs and early stage companies who apply and are accepted to present to i2n Angels are asked to join the i2n community by becoming an i2n Entrepreneur, which requires an investment of $325 for a one year engagement and offers access and benefits through the network of i2n Partners and i2n Supporters, other i2n Entrepreneurs as well as other professionals and staff of i2n and CCEDC. Note: there is no guarantee that an applicant will be accepted to present to i2n Angels, and the investment of $325 to become an i2n Entrepreneur will only be required once an applicant is approved to present to i2n Angels.

c) Screen & Assess: our i2n Angels Screening & Coaching Committee will prereview and assess if an entrepreneur is at the appropriate stage to present to the i2n Angels. Those determined to be “ready to present” will be offered additional coaching as needed, and invited to attend an upcoming monthly meeting of i2n Angels.

d) Assist: following the due diligence process, those early stage companies selected to be an i2n Angels-funded company will be offered various support and services from members of i2n Angels to assist them in their strategic growth and go to market plans. Other entrepreneurs and early stage companies not selected for i2n Angels investment may also be offered coaching, guidance, advice and other assistance from i2n Angels members as well as i2n Partner and Supporters.

e) Active Participation: in some cases, i2n Angels members will engage as advisors and in more direct and specific ways on the management teams and Boards of Directors of early stage companies selected for investment by i2n Angels.

3. Specific Investment Process Steps:
a) Business Plan Submissions: the i2n Angles investment process begins when an entrepreneur or early stage company submits their application, business plan and executive summary for consideration. This is an online application process that requires applicants to become an i2n Entrepreneur at an investment of $325.

b) Screening: the ED and AED review the online applications to ensure the materials are complete and fit the basic criteria for consideration by i2n Angels membership. Those that qualify are then reviewed by the Screening & Coaching Committee. Those that meet the Screening Committee criteria are invited to have a preliminary conversation, engage in a coaching session(s), and ultimately to present to the membership.

c) General Meeting Presentations: i2n Angels general meetings are held monthly at (day and time) at (location). A typical agenda includes general business and operations topics followed by presentations from companies whose plans have been approved through the screening process. Following the presentations, the Chair and/or ED and AED will poll members in attendance to determine their interest in investing in each company. Based on feedback, a “Lead Member” will be identified, and this member(s) will serve as champions of the project, coordinate next steps with the Due Diligence Committee, and act as the primary point of contact on behalf of the membership.

d) Due Diligence: if there is sufficient member interest at the General Meeting in making an investment, the Diligence Team will begin the due diligence process, which should be concluded in 30 days or less. At the appropriate point in the due diligence process, an SPE will be formed, and a term sheet prepared and negotiated with the company.

e) Due Diligence Team Construction & Sample Topics: with support from the “Lead Member(s)” for each investment project, a due diligence team will be formed consisting of members of i2n Angels with experience in the industry sector of the company under consideration. The Due Diligence Team should include at least four members of i2n Angels. In some cases, and for efficiency, we may collaborate with other angel groups that may have also completed due diligence related to the company being reviewed for investment. The diligence process should focus on the investment merits of the opportunity, and consideration will be given to issues such as: the character and abilities of the company’s leadership team; size and growth of the market; uniqueness of the product or service, and the need it may serve; business model; and more.

f) Diligence Reporting: the final due diligence report and ongoing timely updates should be made available to those i2n Angel members who have agreed to invest in the company by participating in the SPE, and will be shared with the full membership following completion of the report. The Lead Member(s) should regularly share ongoing due diligence updates so that all are aware of the timing, process and information uncovered. The due diligence team should actively seek input from i2n Angel members, including those who had not attended the initial company presentation. The final due diligence report should include statements by due diligence team members as to the likelihood of a company’s ultimate success or failure; however team members should not make specific investment recommendations. This final report to the membership should be completed in a timely manner after company’s presentation to general membership.

g) Ongoing Investment Monitoring: after SPE is formed and the investment is finalized, at least one i2n Angels member will typically serve as an advisor to the company.