Thank you in advance for considering applying to Central Texas Angel Network (CTAN).
CTAN is one of the largest and most active angel investing groups in the nation with 100+ members, and more than $120 million invested in 190+ companies. We are a nonprofit organization of accredited investor members, and we run up to five Funding Cycles per year.
Please note that we restructured our funding cycles in Summer 2019, so we highly recommend reading the important information below prior to completing your application, even if you are familiar with CTAN’s previous process.
CTAN initially evaluates companies based on a set of Investment Criteria. Please review these criteria prior to submitting your application.
CTAN charges an application fee of $100, due prior to submitting your application. The $100 application covers two attempts at our funding cycle, so any company that does not receive investment their first time applying can apply to one more future cycle of their choosing without paying the fee again. Important: CTAN does NOT offer refunds. We recommend you clearly understand the funding cycle process, as well as the pros and cons of applying to an angel group before submitting an application.
If CTAN members invest $100,000 or more in your company, CTAN collects an Administrative Fee of $5,000 upon closing. If CTAN members invest $300,000 or more in your company, CTAN collects an Administrative Fee of $7,500 upon closing.
Each Funding Cycle is at least six weeks long. Please review the structure below before you apply.
Before applying to CTAN, please check the Funding Cycle calendar for the most accurate cycle information. Pitches cannot be rescheduled, so we encourage you to be sure you’re available for all events.
Prior to Week 1, companies apply to CTAN by creating a Deal Room on ProSeeder, an online dealflow platform.
In addition to responding to written questions in the application, the CTAN ProSeeder application requires that entrepreneurs complete the following items:
- Submit a completed Screening Checklist
- Submit a 2-minute video (with specific info as instructed),
- Watch the CTAN Overview presentations on our Resources page, and
- Review our FAQ page.
In the application, entrepreneurs classify their business in one of five industry sectors: B2B Software, B2C Software, Hardware/Other, Life Sciences, or Consumer Products.
NOTE: The ProSeeder application and additional steps are critical to a company’s potential success in member voting, so we encourage applicants to give it careful attention.
During pre-cycle screening, companies that do not meet our Investment Criteria are notified that their application will not be presented to our members for consideration during the Funding Cycle. Applicants that meet our Investment Criteria are invited to participate in Week 1.
(NOTE: This will count as one of your two go-throughs for the cycle, so we highly encourage you to review the criteria and carefully follow all application instructions.)
WEEK 1: MEMBER VOTING
CTAN members review entrepreneur applications and vote for companies in which they have the highest interest. The top four to six companies that garner the most member interest are invited to proceed to our Initial DD Review.
WEEK 2: UPLOAD DD CHECKLIST & INITIAL DD REVIEW
Selected companies are tasked with uploading a completed Due Diligence Checklist to ProSeeder on Wednesday after Member Voting, two days after they receive notification that they’re moving forward in our funding cycle process. This serves as the basis for our initial Due Diligence phase.
In Initial DD Review, each Due Diligence Checklist and related materials are reviewed by CTAN’s Investment Committee to ensure that there are no “deal killers” (such as $500k CEO salaries, etc.) that would preclude an applicant from being invited to Pitch Night.
WEEK 3: PITCH NIGHT
Companies that make it through CTAN’s Initial DD Review are invited to present to the broader CTAN membership at Pitch Night, which includes a cocktail hour for networking with investor members. If enough CTAN members express continued interest, we’ll schedule due diligence meetings with the team and interested CTAN members.
WEEKS 4-6: DUE DILIGENCE
Selected companies meet with an interested group of CTAN investors for full due diligence. From the interested investors, a Deal Team needs to be formed to continue moving a deal through our process. The Deal Team will work with the company to better understand the business model and value proposition. In due diligence, we conduct customer reference calls, competitive analysis, market sizing, team reference calls, etc. We prefer in-person due diligence meetings, but can accommodate remote meetings as well.
Throughout the Due Diligence process, the Deal Team works with the company to arrive at mutually-agreeable investment terms. Once a term sheet has been agreed upon, the due diligence findings are made available to members and we soft-circle interest from the full membership. If we are able to soft-circle interest, we begin working with legal counsel to close the deal.
1) Members cannot soft-circle interest prior to this point. They also must soft-circle interest only to the CTAN Deal Team and Program Director, not directly to the company, due to the group nature of our process.
2) CTAN does not accept SAFE / KISS notes as an investment vehicle. We prefer equity rounds, but will consider convertible notes with a valuation cap.
If you have questions, first reference our FAQ page and then email us at director[at]ctan.com if you still have outstanding questions.
“It only takes 1…”
It really does only take one interested investor to make a huge difference. While a majority of CTAN portfolio companies have progressed through the entire funding cycle, we typically see some additional companies receive funding each cycle which didn’t make it through the entire process. Perhaps the company didn’t receive enough votes, but a handful of members remained intrigued. We do not prevent interested members from conducting due diligence and investing outside of the process; in fact, we encourage it — as long as the company is not moving forward in CTAN’s formal funding cycle. We seek to help as many companies get funded by our member investors as possible.