FAQs
for Entrepreneurs
What is C-Cap?
C-Cap is a hub designed to provide a venue for private investors
("angels") and entrepreneurs to communicate, and for entrepreneurs
to find the other resources they need to succeed. C-Cap was formed
in response to the growing need for an efficient deal flow between
investors and emerging companies with high growth potential. C-Cap
is operated by The Circuit Cincinnati's
Digital Connection, which is the Cincinnati region's trade association
for information technology companies.
What are the benefits
of an investment from C-Cap member angels?
An investment from the C-Cap member angels can benefit your emerging
company, by
- Providing early-stage
capital vital to its growth
- Giving efficient access
to investors who have substantial business experience
- Offering access to
a network of contacts that can help your company succeed.
Do C-Cap's investors
invest through a fund?
our members have made most of their investments as individual private
investors, without a fund. It is possible for a group of our investors
to form a single legal entity and pool their investment, or for
a group to invest on a single term sheet. The individual members
decide for themselves whether or not to invest in a company. However,
in 2003 several investors and other formed the QCA First Fund, to
invest smaller amounts, in earlier deals, than they invest as individuals.
See the QCA First Fund page for more information.
What types of investors
are members of C-Cap?
C-Cap was established for active, accredited investors. C-Cap's
members are individuals. Many of the investors have joined C-Cap
because they want to actively assist young companies as mentors
and advisers. C-Cap investors often become members of the governing
board or advisory board of a company.
What types of companies
do the members of C-Cap like to see?
The short answer is, "any company that promises an excellent
return on investment." To expand, the member angels are looking
for companies with a sustainable competitive advantage or proprietary
technologies, and credible management. The investors will consider
companies within and outside of the Cincinnati region, although
local companies are generally preferred.
Is there a typical
investment size that the members like to make?
Our members will invest anywhere from $25,000 to $250,000+. Currently,
a typical total investment by C-Cap members may be as large as $750,000
or more. We have received business plans of emerging companies that
are raising anywhere between $50,000 to $2,000,000+. Our members
invest as individual private investors, though a group of our investors
may form a single legal entity and pool their investment or invest
on a single term sheet. The QCA First Fund typically invests $50,000
to $100,000 in very early stage companies.
Do you charge an application
fee to entrepreneurs?
Yes, an entrepreneur is charged a fee of $200 to help defray C-Cap's
expenses. Most of C-Cap's expenses are paid by C-Cap's
sponsors and C-Cap's member angels.
What is the process
by which a start-up can present a business plan to C-Cap?
The first step is to submit your application, executive summary
and application fee to C-Cap. The application has instructions on
how to do this. Click here to download
the executive summary and application in pdf format. If there is
interest in your proposal, you will be contacted and the interested
investors will decide how they want to proceed. You may be asked
to meet with individual angel investors, make a presentation to
a group of investors, or be sent a list of written questions to
be answered in writing. Once the investors receive the executive
summary from C-Cap, they control the process.
What is the deadline
for submitting my materials to C-Cap?
There is no deadline. Proposals are sent to C-Cap's members in the
order in which they are received.
Can I contact the
angel investors?
No. The names of investors and their contact information are confidential.
C-Cap member angels normally review business proposals only if they
are received through the C-Cap executive summary submission process.
If angels are interested in a proposal they will contact the entrepreneur.
Please respect angels' privacy.
How long does the
screening process take?
The length of the process depends upon the number and quality of
plans submitted, and the interest and schedules of the member angels.
The response may be immediate or within a few weeks time. The largest
group of C-Cap member angels, Queen City Angels, meets at least
monthly to review proposals, although all proposals are not necessarily
reviewed at the next meeting after they are submitted.
How will I know if
my plan has been selected?
All business plan submissions are reviewed; you will be contacted
if you have been selected for presentation to the Steering Committee.
What happens if C-Cap
members do not select my business plan for investment?
If your company is not selected, C-Cap or an investor will contact
you. Investors may decide not to immediately invest in a company,
but will nevertheless place the company on their informal "watch
list" and continue to follow the company's progress, and sometimes
advise the company, as a prelude to a possible later investment.
What happens when
my executive summary information circulates among the C-Cap investors?
Once your proposal circulates, C-Cap makes no commitment that any
contacts will be made or that any investments will develop. Each
member or group of members acts independently after reviewing the
information you have prepared.
Can I view my executive
summary once it has been submitted?
No, the submitted business plans are accessible to member angels
only. You can feel confident that our members and staff are the
only individuals who will view your submission.
If the C-Cap members
decide not to invest in my company, can I resubmit my plan at a
later time?
You may resubmit your executive summary after a 90-day interval.
But investors may be unlikely to consider it unless substantial
changes have been made, or the company has made important progress
in the interval.
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