Ames Seed Capital Fund

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Ames Seed Capital Fund Powered By Docstoc
					Crossroads Institute

         Gary Larrowe
      Extension Specialist
           VA Tech
     Fund Goal: $1,000,000
              25-40 investors

Minimum investment required $500,000 to complete
                      fund.
Individual Investment
Minimum Investment  $10,000
Maximum Investment $100,000

 10% due with subscription
 Balance or part of balance due when
  capital call is made by the Company.
  Current Indications of
        Interest

   Several Individuals in Carroll County
     have been used as barometers of
       interest with positive feedback
Closing fund at $1.5 million or October 31,
        2004 whichever comes first!
  Crossroads Venture
   Capital Fund, LLC
Formal Investment Fund
Aggregate Intellectual & Financial
Resources
Comprised of Accredited Investors
Managed by formal Board of Managers
 Investment Motivation
1. Return on Investment
2. Angel Investor opportunities
3. Economic Development
4. Reduce Risk
5. No Sales Commission or other Dilution
   of Investment and possible tax credits
 Investment Motivation

6. Limited Management Expenses, more
    in early years during due diligence
7. Some Legal and Accounting
8. Local Control
9. Regional Economic Power
       Return on Investment
Ideally, the angel fund will have a blended portfolio and receive
a weighted return of up to 20% compounded annually.

Expectations for Return on Investment within 5 years.

   Startup Companies                  10x
   Companies less than one year old   6x
   Companies one to five years        5x
   Companies five years plus          3x
         Life of Fund
 Will invest all funds less a reserve for
operating expenses
 Investment period 2-4 years
 Expected term 5-7 years
 End of term, close fund and disburse
remaining assets
Open new fund if necessary
            Crossroads Venture
             Capital Fund, LLC
Investment Focus to be Determined by Members:
 Will consider most industries to include:
   Manufacturing, Technology, Life Sciences, Warehousing
  and Distribution
 Will consider various growth stages of a business:
     Seed, Early Stage, Start-Ups, Expansions, Owner Transitions
 Primary Investment Region:
     Service area of Crossroads Institute
 Will consider investments outside the region.
         Crossroads Venture
          Capital Fund, LLC

Investment Expenses to be Determined by
  Members:

 Will consider reimbursement fee for due diligence efforts of
 members ( Preferably Non Cash: stock options or % of deal )
 In some cases may hire due diligence to be performed
 Goal to limit expenses to increase return on investment
                Management
Members                        Officers
   Investment Decisions          Elected by the Board of
   Elect Board of Managers        Managers
   One vote per share            Day-to-Day mgmt
   Assist with deal flow          responsibilities
   Due Diligence              Crossroads Institute
Board of Managers                 Administrative Support
   Direct Due Diligence on
    investment opportunities
   Decision makers for the
    Company
   Elected by the Members
     Board of Managers:
     Cross Section of Disciplines
Financial/Banking      Industry Expertise
Accounting                 Advanced
                            Manufacturing
Legal                      Technology
Operations                 Distribution
Marketing                  Warehousing

Human Resources
                       Due Diligence
Risk Management
Medical
    Crossroads Institute
Administrative Support
 Call meetings
 Assist Officers and Board of Managers

Coordinate Due Diligence Efforts
 Assist with preliminary research
 Resources for research

Assist in other areas as needed
Stimulate Deal Flow
         Critical Functions
Deal Flow                       Due Diligence
Crossroads Entrepreneurs
                                Team Approach
Establish connections with
other Venture Funds and Firms   Board of Managers and
                                Members
Venture Capital Firms
                                Outside Expertise
                                Due Diligence Work Plan
MEMBERS
           Next Steps…

Within three months: Complete and Sign
Subscription Agreement return with check for 10% of
subscription amount to the Crossroads Institute
Close Private Placement Offering Memorandum
10/31/04 or at $1.5 million
Annual Meeting to Elect Board of Managers 11/04
Cash Checks 11/04
Begin Deal Flow
www.CrossroadsVA.org

				
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