For Entrepreneurs

OAF Funding Process
OAF seeks to invest in 4-5 early-stage growth companies each year. The application and due diligence process is designed to be straightforward, transparent, efficient, and constructive for both the entrepreneur and participating investors. Applying companies must be based in Oregon or SW Washington, may operate in any industry, should be seeking $400K to $2M in investment, and offer investors the potential for a venture-type return -- i.e., a 10X return within 5 years.

Online Application
Next application deadline: March 1, 2012. To be considered for an investment by OAF, entrepreneurs must apply online via GUST.com, a secure hosted platform that OAF uses for reviewing and evaluating applications. An upfront $250 application fee, payable by credit card, is directed to OEN for providing support services for applying entrepreneurs. No other fees are charged.

Applications are due every two months and immediately reviewed by 100+ accredited investors active with OAF, the Portland Angel Network (PAN), and the Womens Investment Network (WIN). The online application is designed to draw from an executive summary and highlight the most important details about the business in a straightforward and secure manner. Entrepreneurs can post supporting documents at any time during the review and due diligence process, including an executive summary or short business plan (required), a financial plan, presentations, term sheets, investment subscription docs, company updates, customer letters, and anything else that may aid OAF members in their due diligence. Applications may remain online for 12-months or more for investors to refer to.

Investment Terms
If the company has a lead outside investor and open funding round, OAF will evaluate the investment terms as part of its overall evaluation of the investment opportunity. If an applying company does not have a bona fide outside lead investor and OAF desires to invest, OAF would likely offer its standard, "plain vanilla" equity term sheet Pre-investment valuation is mutually established by the applying company, the due diligence lead, and OAF managers before an investment recommendation and vote are made.

Screening Meeting
OAF members meet every two months to review and discuss the investment opportunities of greatest personal interest. Applying companies are ranked anonymously using a wireless audience response system and 3 businesses are selected to present at the next OAF meeting. Research begins immediately on those businesses in which an OAF member has stepped forward to lead a due diligence team. An applying company may still be invited to present at the next OAF meeting even if no OAF members have volunteered to lead due diligence.

Due Diligence
A due diligence team verifies statements made in the application and business plan and meets with the entrepreneur. The team researches management's background and track record, the market, and competition, and assesses the relative risks and upside potential. Due diligence teams are supported by the OAF fund managers and typically spend 100 to 300 total person-hours researching the applying business over an 8-10 week period before recommending an investment vote. A due diligence lead may not have an economic interest in a company being researched; however, conflicted OAF members may participate on a team, as long their conflict of interest is clearly and fully disclosed to the OAF membership.

Presentation
Three new applicants are invited to present and answer questions at an OAF meeting, which are held approximately every two months. Presenting companies are highly encouraged to enroll in a complimentary OEN Private Investor Presentation Review in advance. OAF members vote whether to continue due diligence on each presenting business, with the intent of making an investment recommendation at the next OAF meeting.

Investment Decisions
Every two months, OAF members review due diligence findings and recommendations and vote to either "invest in", "defer consideration for later", or "deny" funding to businesses under consideration. A 2/3 majority vote of OAF members is required to trigger an investment. OAF and PAN members may invest on their own alongside OAF, if room, or in deals not receiving OAF investment. The entire process from application to investment decision takes 8-10 weeks. Feedback from due diligence and OAF meetings is privately shared with applying entrepreneurs throughout the process.

Post Funding
After an investment is made, the company enjoys access to a network of value-added contacts and experienced business professionals within OAF who can provide critical guidance for the growth and success of the venture. Typically, an OAF member - often the due diligence lead - will play an active role with the company and serve as a board member, at least until the next financing round. OAF members often help with raising additional capital, recruiting employees, making customer and partner introductions, and assisting with business planning.

Resources
The Oregon Entrepreneurs Network (OEN) has many resources to help entrepreneurs put their best foot forward in applying to OAF and other sources of funding. As part of the application process, entrepreneurs are eligible to participate in a complimentary OEN Private Business Plan Review. This private panel of local executives and investors will review the business plan in depth, meet with the entrepreneur, and offer advice, ideas, and solutions which may enhance the business’ chance of success. Participating entrepreneurs almost universally consider these reviews to be a healthy, constructive, and valuable experience.

Click here to apply to OAF, PAN, and - just one application is needed to be viewed by the 100+ members of the investor groups.

Thank you for letting OAF take a look at your business!