Angel groups make investments in early-stage, high-growth potential companies. VentureSouth aims to invest $250,000 to $1,000,000 in companies seeking capital to launch or scale a market-ready product or service.
If you are interested in seeking an investment from VentureSouth, please carefully review our investment criteria pitching process below. If you think your company might be a fit, please review our guidance on how to pitch and then contact us; if not, you can find other potential options on our Sources of Capital page.
We invest in companies that:
are based in the Southeastern United States
are led by a management team that is talented, trustworthy, determined and resourceful
are seeking ~$250,000 to $2,000,000 for a 15%-40% preferred equity stake in the company
(we don't invest in common equity or debt, and only rarely in convertible debt)
have initial revenues or are at the market entry stage with demonstrated customer demand
are deploying a business model that can scale with speed and capital efficiency
can potentially generate a 50% annualized rate of return on investment over 3-5 years
If you can track us down through a warm introduction, that's your best bet
If you can't, you're welcome to send us an email to get introduced
Include your three-sentence business overview and attach a 1-2 page executive summary
If we're intrigued with the initial introduction, we may schedule a call to learn more
Quick tip: don't send a lengthy business plan or rambling story
If we're still intrigued, we'll invite you to a screening meeting
Screening meetings are held in each of our funding cycles for our angels to hear your formal pitch. These sessions are recorded and made available to all members
Screening pitches typically last 12 minutes followed by 15 minutes of Q&A
Note that we will need to agree on investment terms prior to inviting you into due diligence
If voted by members into "due diligence", a group VentureSouth staff and investors will conduct a deeper dive evaluation. We'll review documents, make reference calls, meet with the management team to ask our questions, and do our own analysis
Quick tip: the more prepared and organized you are, the more efficient this process is. We suggest proactively building a data room in advance for quick access to key documents
Part of our diligence process is a road show to present to our 200+ investors across our angel groups
We split the trip in two halves based on geography: you'll pitch half the groups one month and the other half the following month
These presentations are 15 minutes of pitch time and up to 20 minutes of Q&A
Quick tip: be prepared to answer with honest and concise answers - other types of responses will undermine your credibility and greatly diminish your chance of funding
At the end of the diligence process and road show, our diligence team presents our report back to our members. Hopefully at that point, everyone is impressed and we can collect investment checks, get the documents from the lawyers, and execute the investment.
At this point, you get one new shareholder - and you can get back to building a great business!
Some EXTRA advice
Securing an investment from any angel group is difficult. We invest in only about 3% of the companies that start the initial conversation, so the hurdle to clear is high.
Remember that you are not the only entrepreneurs seeking funding. We review 20-30 introductions each month, so you'll need to demonstrate a compelling reason for us to proceed with your opportunity among the many we see.
Quick tip: be prepared, do your homework on how angels invest (read our guidebook, or other material in our entrepreneur resources), have a 1-2 page executive summary and a compelling 10-12 page investor deck, and be organized and professional - you'll already be ahead of the pack.