Angel Investments > Approach
At our core, we are entrepreneurs with a passion for building great companies. We've been in the operating trenches before and recognize that building and growing early stage companies is as much art as science. No business plan or financial forecast can prepare an entrepreneur for the myriad of situations that will be faced when starting and building a company. However, experience can be the difference between exponential growth and severe growing pains.
Both as a team and individually, the principals of KB Partners have proven track records helping young companies transform themselves into market leaders. In our careers, we have faced many of the issues confronted regularly by the entrepreneurs that we back. Accordingly, our ability to apply our own operating experiences to these challenges enables us to provide hands-on assistance with all aspects of an organization.
Angel Investments > Investment Submission Guidelines
Please be sure that any investment proposal that you submit to us addresses the following questions clearly and concisely. This will enable us to provide you with a prompt response.
- Product or Service
- Describe the product or service you provide.
- How is it unique or differentiated?
- What is the problem that your product or service solves?
- Market Size
- What is the addressable market size for your product or service?
- How fast is this market growing?
- Competitive Landscape
- Who are your competitors and why do you think you will be successful in spite of them?
- Identify the key members of the management team.
- Does the team have relevant domain expertise?
- Does the team have prior operational experience including profit and loss responsibility?
- Please provide a summary of your 3 year proforma financial statements.
- How much capital has been raised to date? From whom?
- How much capital are you seeking and what will be the use of proceeds?
Angel Investments > Evaluation Process
Once we receive an investment opportunity, it must pass through an initial screening process, the elements of which are discussed in the Investment Submission Guidelines.
If a business plan successfully makes it through the initial screening process, we will request a meeting with the entrepreneur to better understand the business opportunity and evaluate the existing management team. At this stage, it is our goal is to ascertain if the viability of the business and the associated managerial expertise warrants further research and investigation.
A successful meeting with management is usually followed by a rigorous due diligence process that helps us better understand the competitive environment, market dynamics, and growth potential of the business. Due diligence usually includes, but is not limited to, on-site visits; interviews with management, employees, customers and vendors; background checks; research relating to its management, markets, products, and services; and the review of historical and projected financial information.
Upon successful completion of the due diligence process we will offer a term sheet to the entrepreneur detailing the nature of the proposed investment. Once we have agreed to terms with the entrepreneur, attorneys for both the entrepreneur and KB will document the transaction. Funding ensues upon completion of the necessary documentation.
The entire investment process usually takes 60-90 days, but can be completed in as little as 30-60 if necessary.
KB moves quickly and decisively, on both opportunities that it wishes to pursue, and those that it chooses not to pursue. Responsiveness and straightforwardness are two very important qualities that KB's principals strive to achieve.