Applying to CincyTech
All companies or individuals seeking investment or assistance from CincyTech must first fill out an application.
The application asks questions about your business and your business idea and helps CincyTech respond more effectively.
Answer the questions with as much detail as you can. Do not enter any proprietary or confidential information. Click here for CincyTech’s policy on confidentiality.
After you have filled out the application, CincyTech will respond to you with the next steps within 3-5 business days. Many factors affect the speed at which you progress through each of these steps: your business model and financial strategy, your competitive landscape, your intellectual property, your staffing needs and the time it takes to find other investors.
1. Initial screen
CincyTech’s initial review of your application includes a number of objective factors, including whether you are located or willing to locate in Southwest Ohio and whether your business is a high-growth, technology-based opportunity with a total annual addressable market of at least $250 million.
CincyTech investments are typically, but not exclusively, in information technology or life sciences. These objective criteria must be met before CincyTech does a more detailed screening of the opportunity.
Assuming the opportunity meets CincyTech’s objective criteria, its executives will begin to evaluate the opportunity with internal and external resources. In this screening, CincyTech is evaluating the product, management team, market, competition, and potential for follow-on venture investment. It also is evaluating the opportunity in the context of others being considering for investment.
The initial screening determines whether CincyTech should invest significant resources to begin considering the opportunity for investment. If you pass the initial screen, you will be moved ahead to the Advise step. If you do not pass the initial screen, you will be notified and given general feedback on the reasons. In some cases CincyTech may recommend that you keep it apprised of your business as it develops.
Advise is the first stage of the decision-making process for investment. CincyTech will conduct more detailed market and competitive research, evaluate your product, meet other team members, and build a detailed assessment of the opportunity. As each opportunity is different, the objective is to work with you to understand exactly what the next phase in the company’s development should be and how much capital is required.
CincyTech also will be working to agree on a general business plan for the company, from current state to liquidity. Its executives will help you identify gaps in your team, partnerships, and product. It is important that you and potential investors are aligned on the company’s strengths, weaknesses, and long-term vision.
CincyTech executives will begin to share the investment opportunity to its syndicate partners to determine co-investment interest and expected investment terms.
During this stage we will work with you to develop the following information:
- Market definition and sizing
- Revenue model
- Competitive analysis
- Target customer profile
- Management team plan
- Potential exit paths and comparable market valuations
We will evaluate your opportunity and come to one of three conclusions:
- The opportunity is not a good candidate for a CincyTech investment. In this case you will be referred to other community resources that may be able to provide assistance or funding.
- The opportunity is a future candidate for a CincyTech investment, but there are pre-funding milestones that investors require before moving to the accelerate phase. In this case CincyTech will work with you to define those milestones and track your progress.
- The opportunity is a good candidate for a CincyTech investment. In this case it will begin due diligence for an investment. CincyTech executives will discuss likely terms for the investment, based on discussions with investment partners, and present the investment terms to you before proceeding to the accelerate phase.
If the opportunity is a good candidate for a CincyTech investment, it will begin to build out a detailed due-diligence plan, identify other prospective investors, and work closely with you on a near-term plan for the period of funding and a longer-term plan to fully capitalize and build a high-growth enterprise.
CincyTech also will work with you on a detailed plan for the phase of development it is proposing to fund. This will include key quantitative and qualitative milestones that should be met to attract the next round of investment. In many cases CincyTech and its syndicate partners will fund your company in tranches based on milestone achievement.
Due diligence will include detailed review of the legal documents of the company, past investment, customer or prospect interviews, detailed competitive research, and interviews and background checks on all management team members. It also will include presentations to other investor groups, and sometimes to members of its investment committee.
Early in this phase CincyTech or a co-investor will generate a term sheet summarizing the financial and other terms for investment acceptable to you and to the investors. Once terms are agreed to and diligence is completed, these terms will be formalized into appropriate investment documents.
After a formal investment closing, CincyTech EIRs continue to assist and monitor your progress toward becoming a high-growth company that will attract additional investment.
Attracting additional investment capital is a time-consuming activity for an operating CEO, and CincyTech will work in concert with you to identify and pursue follow-on capital.
In addition, CincyTech will continue to assist in key employee recruitment, business planning, introductions to prospective customers and business partners, and other issues or challenges you may encounter.