We are a diverse group of 25 high net worth private investors, all of whom have been CEO’s, founders or senior executives of successful entrepreneurial ventures. We have the capital, time, experience, skills and passion to work with other entrepeneurs to build disruptive companies.
Our focus is on seed and early stage companies in a wide range of industry sectors.
Life Sciences
We evaluate and invest in medical devices, pharmaceuticals, diagnostics and therapeutics. We understand the challenges associated with developing these businesses and have the expertise to improve the chances of success.
Technology
We consider both enterprise and consumer products in the SaaS, mobile, IT and internet spaces. In addition we are also interested in evaluating new capital efficient clean technologies.
Consumer Products
We are unique in that we invest in consumer product companies. From a children's clothing company to a chain of organic resturaunts, we focus on capital efficient companies that are worthy of acquisition or IPO.
What is the typical investment size?
Typical initial investments range between $100,000 and $1 million. Total investment in a company has reached $3 million.
What are the investment guidelines?
Management: Thou shalt invest in good management that demonstrates an ability to execute the business plan rapidly, provide sound cash management, raise additional cash, lead the organization, and adjust the business plan when necessary. Thou shalt seek leaders with industry expertise who are driven and charismatic.
Board of Directors: Thou shalt invest only in companies where the majority of the Board of Directors is comprised of strong outsiders, who possess solid business experience in the industry and/or stage of the company. Said Directors shall push the company to rapidly execute the business plan within cash constraints and shall also have the ability to recognize the need for a CEO change and act swiftly in implementing it. Thou Shalt seek Directors with good contacts for initial customers and/or for raising capital.
Business Plan: Thou shalt seek business plans that effectively address the technology, customer acquisition, and competitive challenges to establishing the business with realistic gross margins, unit volume, and return on capital invested.
Access to Capital: Thou shalt identify and establish relationship with sources of capital with a history of investing in like kinds of businesses in the amounts needed for the company. Thou shalt work with these co-investors for the betterment of the company and all investors.
Product Need: Thou shalt invest in companies that have an in-depth knowledge of its customers (through to the end user) usage habits and needs. Thou shalt forsake all those "nice to have" products or services and save thy resources for "must have." Differentiation: Thou shalt invest in companies that have advantages such as patents, first mover advantage, world-class technologists, proprietary process, and/or key customers under contract.
Market Size and Trajectory: Thou shalt invest in companies that have large and/or rapidly growing markets or can realistically create such a market. Thou shalt invest in companies with a low risk of market loss to alternative technologies.
Technology Risk: Thou shalt have sufficient technical expertise at the table, or through thy’s trusted contacts, to evaluate all product and technology claims before committing thy’s resources.
Investment Execution Risk: Thou shalt have established the ability to influence key company decisions, create and link milestone to
capital rounds, and seek early customer learning such as through use of prototypes. Thou shalt receive a fair valuation on thy investments and not release investment funds until the full round is raised. Thou shalt stay involved and work with companies to assist – aggressively if necessary - in their success. Thou shalt invest only in those companies that provide a clear exit strategy for thy investment.
Investment Evaluation Risk: Thou shalt ask tough questions of the company, listen to the market and discuss the company with other investors. Thou shalt always speak truth with thy fellow Members and be loyal in voicing any opposition or apprehensions, now and forever and ever.
What is the investment process?
After ICF recieves a business plan that fits our investment profile, we will invite that company in for a short screening meeting at out office. If, after the screening meeting, the company appears to be a potential fit for our group, we will invite that company back to present at one of our weekly meetings to the entire group. If there is interest from the group to invest, then a 2 to 3 month due diligence process will take place. If there are no concerns at the end of the due diligence process, the final investment amount will be made through our typical investment structure.
What is the investment structure?
When ICF members invest, IC creates a special LLC entity to make the investment, making the administration process vastly simpler for the entrepreneur and protecting the privacy of the investors. Members of ICF pay a fee to belong to the organization; entrepreneurs pay no fees or commissions.
How is ICF different from other angel groups?
We are a small, stable and committed investor group with long history of investing together and low turnover.
ICF members meet weekly, not monthly, to review new investment opportunities.
All of our deals are reviewed and the due diligence is carried out by interested angel investors, not by consultants looking for business opportunities. Investments are always made via a single investing LLC. This not only simplifies the entrepreneurs’ process but also protects our investing members' privacy. The aforementioned ICF LLC will often lead the round and be instrumental in bringing in venture coinvestors. Entrepreneurs are not charged any fees to present, we don't have “success” fees or any other fees for that matter.
ICF Invests In These Industries
• Business Products and Services
• Marketing / Advertising
• Clean Technology
• Media and Entertainment
• Computers and Peripherals
• Medical Devices and Equipment
• Consumer Products and Services
• Mobile
• Electronics / Instrumentation
• Networking and Equipment
• Financial Services
• Other
• Food / Drink
• Retailing / Distribution
• Healthcare Services
• Software
• Industrial/Energy
• Sports
• Internet / Web Services
• Telecommunications
• IT Services
• Travel