While there are no perfect deals, we look for the following:

  1. We only invest in SEC Rule 506(b) exempt offerings (private offering to accredited investors). We do not invest in SEC Rule 506(c) offerings (public offering to accredited investors) or companies who have previously raised funds under a Rule 506(c) exemption.
  2. It is our priority to invest in companies located in the Central Valley area, with a secondary focus on Northern California. We will consider companies located elsewhere whose rounds are being led by an angel group with whom we have a trusted relationship.
  3. We expect to invest in C Corporations.  You must either be a C Corporation at time of application, or be willing to convert to a C Corporation at time of investment.
  4. Proceeds of your stock sale cannot be used to pay off loans.
  5. We prefer to invest in convertible preferred stock but will consider some convertible notes.
  6. The business should be revenue-positive or nearly ready to generate revenues.
  7. The business model must be based upon a unique and sustainable product, service or technology.
  8. There must be a sizable market that provides the potential for your company to reach at least $10 million in sales within five years.
  9. You must have an exit strategy whereby we can liquidate our investment in not more than five years.
  10. We only participate as Lead investor in rounds of $500,000 or less, and will invest no more than $150,000 from our fund in any round.
  11. We expect management to have made a substantial investment in the company in accordance with their own financial resources.
  12.  If there is intellectual property, it must have been assigned to the company by all inventors/developers including the founders.
  13. Management should be experienced in the industry and in managing a rapidly growing business, or should have identified executives with experience who plan to join the business contingent upon funding, or should be willing to accept the possibility that experienced management may be recruited.