Application Process In-Depth for Investment Capital
STAGE 1 – Candidate Application
Arizona Tech Investors receives approximately 1200 inquiries a year. From those inquiries fewer than 30 companies will be invited to present to the entire membership at one of ATI’s Member Meetings during the year.
HOW TO APPLY
Businesses seeking investment capital from Arizona Tech Investors must complete a full application. Candidates must submit the following to us:
- 5 year financial projections
- Presentation deck
- Cap Table
- Capitalization Table
- ATI Candidate Application
Please carefully read the through the information provided on this page.
To submit your application, complete the ATI Candidate Application online.
These documents can be updated at any time by editing your online application.
IMPORTANT NOTE TO APPLICANTS:
At this time, Arizona Tech Investors does not invest in securities raised through public solicitations as defined in Regulation D Section 506 (c). If you are a company that is considering seeking capital from Arizona Tech Investors and affiliates Sidecar Funds, please determine in advance if you have taken actions or plan to take actions defined as a general solicitation under Section 506 (c). If you have not made a decision on this matter, we encourage you to consult with your attorneys and financial advisors regarding costs and benefits of such action.
STAGE 2 – ATI Screening
ROUND 1 SCREENING:
ATI reviews applications as they are received. Once ATI has confirmed that all requested information has been submitted, the first round screening determines if the application is consistent with ATI investment objectives. All applicants are notified of their status following this review.
Feedback: If an applicant does not pass the first round screen, feedback will be provided and may include resource suggestions including support from individuals and other entities. On occasion, an applicant may be encouraged to re-apply after pursuing additional development.
ROUND 2 SCREENING:
The second round screening includes a more detailed review by the 10 member Screening Committee. It includes preliminary analysis of data, organizational elements including team expertise and experience, and assessment of the unique elements of the company. Often additional information about the company is required during this phase. The Screening Committee selects usually six semi-finalists from the Round 2 Screening reviews. All second round applicants are notified of their status following this meeting.
Feedback: For those not moving ahead, ATI provides feedback and resource suggestions from the Screening Committee.
Each semi-finalist gives a 10-minute formal presentation via Zoom to the Screening Committee, followed by a 15-minute Q and A session.
STAGE 3: Pitching
PITCHING FOR FUNDING:
In the week prior to the Members Meeting, an ATI member with domain expertise will contact the presenting CEO to gather information for a high-level diligence presentation on the company at the Members Meeting
The CEO of the company is expected to deliver the pitch. The CEO may bring up to 3 members of the management team to the meeting.
STAGE 4: Due Diligence
At the conclusion of the Members Meeting, expressions of interest in each presenter are collected. The interested members become the core diligence team. Due diligence is the analytical process in which members who are interested learn enough more about a company to make an investment decision. A key benefit of ATI is the collaborative nature of this analysis: multiple members applying their expertise and sharing it enable members to move more quickly and more insightfully to investment decisions.
Detailed information about the due diligence process can be accessed here:
STAGE 5: Setting the Terms of Investment
Term setting is the process of documenting the conditions under which ATI will invest in a company. The Terms define the conditions at which Members agree an investment is “worth it.” Most of the time, ATI is the lead investor and, hence, proposes and negotiates the terms. In those cases when a company brings to ATI an opportunity to invest in a deal already determined and led by another, ATI determines whether or not to move forward on those terms.
Terms of a financing can be overly complex and biased toward the company’s benefit or the investor’s benefit. ATI takes a balanced view, believing that fairness to everyone will make for better collaboration. To make this clearer, ATI has written Standard Term Sheet for Series Seed Preferred Stock round and one for Convertible Notes, which can be found here:
STAGE 6: Closing and Investment Management
Once the Deal Terms have been agreed upon and the final elements of diligence are complete, ATI attorneys will draw up the various agreements to document the investment transaction.
Subsequent to closing, ATI investors are generally active investors. They will expect the following:
- Regular and timely receipt of management reports and statements of financial condition
- Updates on major events occurring at the company. This includes reporting on good news as well as bad.
- Management will take full advantage of the capabilities and interests of the ATI investors and larger ATI community to help make the company a success. This can mean seeking advisors, mentors, confidants, and access to the substantial contact database of the membership.