Entrepreneurs

Thank you for your interest in the Houston Angel Network. We invite entrepreneurs to learn more about our investment screening process by reading the overview below.

Application Requirements

All companies applying to HAN must meet the following criteria:
1. The candidate company should be based in the State of Texas, or should commit to relocating to Texas upon the completion of an investment by HAN members.
2. Company should be seeking $250K to $3M in equity financing. HAN will also consider debt financing w/ an equity component (i.e. convertible debt or debt with warrants).
3. If the Venture is raising over $1M, HAN requests that it secure a lead investor for its raise before applying to HAN.
4. Our members prefer technology based companies. HAN does not review companies in the following sectors: entertainment, oil/gas exploration, real estate development, bars/restaurants/spas.

5. In order to be seriously considered, a company must have a completed, working prototype and have market validation (pilot, beta users, revenue).

Application Process

HAN reserves the right to request additional information during the application process which may include (but not be restricted to) data on finances, IP, partnerships, and/or management background. Due to the nature of our organization, HAN cannot execute non-disclosure/confidentiality agreements.

 The application process to the Houston Angel Network is described below:

1. The Company is encouraged to contact HAN’s Managing Director, Kala Marathi kmarathi@houstonangelnetwork.org, before going through the application process to make sure there is a good fit between the company’s focus and members’ interests. If your company meets our criteria, the application form can be obtained from the Managing Director.

2. Submit your executive summary. We will accept your current executive summary, however, if you do not have one, you can create one using the following sample executive summary.
3. Complete the Angelsoft online deal room registration.
4. When you go through the application process, you will be asked to pay a $250 application fee. This fee is non-refundable, so it is important to call us and determine if there’s a fit between your company and our investors’ interests.
5. Your application will be considered complete when you have completed all of the steps outlined above. Your application will not be reviewed until it’s fully completed.
6. Our members identify companies in which they are interested, so there is no guarantee that your company will be invited to give an investment presentation.

Fees

1. $250 application fee
2. $500 presentation fee (if selected to present)
3. $5,000 administrative fee (if companies raise $100k or more through our members or referrals we make)

Application Screening Process

Each Company that has completed the HAN application process will be reviewed by our members at an Agenda Planning Meeting. At this meeting, our members will select 3 companies, which will be invited to give a 10 minute presentation and a 10 min Q&A session at our next Meeting. The selection process is highly competitive due to the number of applications we receive. HAN cannot guarantee funding or investor interest for companies that participate in an investment process screening.

Presentation Preparation

If your company is invited to give a presentation, HAN will provide additional coaching to help you prepare. Presentation to HAN does not guarantee funding from HAN Members or Referrals to other funding sources.

Monthly Breakfast Meeting

HAN hosts 10 Investment Meetings each year. After the company presentations, members who are interested in a follow up meeting are invited to sign up on a sign up sheet or approach the entrepreneurs directly. The entrepreneur is responsible for following up with these investors and responding to their requests for additional data or another meeting.

Due Diligence

Interested investors might collaborate on due diligence and negotiations. Investment decisions, however, are made on an individual basis. HAN does not participate in due diligence conversations or term sheet negotiations.

Follow Up

After a funding decision has been made, HAN may ask for additional information from time to time. This information will be used to track HAN’s performance and update our members on the company’s progress.