Our ten step application process is as follows:
- Company seeking funding submits business plan.
- The Weber Entrepreneurial Association evaluates the plan.
- The WEA visits companies of interest to continue with the evaluation.
- The WEA recommends selected firms to visit with Island Park's investment team.
- Selected company makes presentation to Island Park management.
- Island Park management team continues with evaluation of company.
- Island Park management team decides to invest in company.
- Island Park and company negotiate on valuation and term sheet and begin legal process.
- The investment is completed.
- Other Utah Angels are invited to participate in the investment.
When Island Park decides to invest in a company, a valuation of the company will take place. If the company has had sustainable revenues the typical industry multiple times revenues is used. If a company is in development or early stage sales, the valuation is based on three things. 1) The maturity of the product and its readiness for the market. 2) The companies understanding of the market and its status in the sales cycle. 3) How much money is being raised. Combined, these reflect the level of risk involved in a particular investment. For more information about this process download the Valuation Process Example.
Valuation ProcessValuation Process Example
Typical Term Sheet
After a valuation has been completed, a term sheet outlining the major terms which will make the investment agreeable to the investors. An Example of a typical term sheet can be seen by downloading the Term Sheet Example.Term Sheet Example
When the investment is completed we will continue working with the company on a regular basis to discuss:
- Monthly financial performance versus plan.
- Meet weekly to review sales pipe line report.
- Meet quarterly to review strategy plans and goals.
- Meet twice a year in a company board meeting.
- Host other meetings to discuss other funding needs, patent applications, annual budget, and any other topic the entrepreneur may have.