At Startup Ecosystem™ we believe in a winning process for startup and early-stage businesses.
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Stage 1 – the Application
The application process occurs in two steps.
- The core or basic application
- Completion of the DealIQ™ Lite readiness survey
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Stage 2 – Initial Review
If your application and your DealIQ™ Lite report receive a favorable review and earn a sufficiently high score through your DealIQ™ Full submission, it will progress to the Screening stage. At this stage, you will be asked to provide additional information and answer additional questions.
Stage 3 – Screening for Interest
Upon receipt and review of your DealIQ Full report submission, and your replies to any questions posed, the Startup Ecosystem Screening panel will vote to follow-up, decline, or advance your application to the next stage.
Screening Panel members will express their interest in participating of the funding of your application. If there is favorable interest, and a member Deal Lead is defined, your application will advance to the next step.
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Stage 4 – Due Diligence
With due diligence, our aim is to ensure a thorough understanding of your startup’s business, operations, and growth prospects. This process helps us make informed decisions while minimizing risks for both parties involved.
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Stage 5 – Open Round
When a “deal” has received votes approving the application for investment, the deal is moved to the Open Round stage. At this stage, subject to approval of the applicant, Startup EcoSystem™ will also present the opportunity to our syndication partners.
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Stage 6 – Investment & Syndication
Startup EcoSystem™ sponsors and promotes investment in promising applications via several active methods. These include:
- SE Investor Funds
- Direct Member Investment
- Syndication Partners
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Screening
Upon receipt and review of your DealIQ™ Full report submission, and your replies to any questions posed, the Startup Ecosystem™ Screening panel will vote to follow-up, decline, or advance your application to the next stage.
Screening involves participation by and among all Startup Ecosystem™ members and member groups. When an application advances to the Screening stage, it must have completed and submitted a DealIQ™ Full report.
The screening process typically requires a minimum of 3 days to a maximum of 2 weeks depending on the time required to receive answers to any questions which may be asked by the Screening Panel.
All Screening Committee Meetings are held in virtual meeting mode using Zoom. At the conclusion of the Screening stage, Startup Ecosystem™ Members and Groups will record their expression(s) of funding interest, and designate a Member Deal Lead. Where there is favorable interest, and a Deal Lead is defined, your application will advance to the next step.
Initial Review
With the initial review of your application and supporting materials, including your submitted DealIQ™ Lite report, we will assess if your company aligns with the investment criteria of Startup Ecosystem™. If it does, you will receive an invitation to present to our Screening Panel. The final selection will be based on the deliberations of the Screening panel members, their expression of funding interest, and the designation of a Deal Lead. Each month, Startup EcoSystem™ selects one to three companies to proceed into Due Diligence. Please note that Startup EcoSystem™ Screening Committee Meetings are held monthly, and occasionally more frequently depending on the volume of well-qualified applications received.
All Screening Committee Meetings are held in virtual meeting mode using Zoom.
The Heart of the Matter: Due Diligence
Without sound due diligence, there will be no investment opportunity.
Please understand that the due diligence process is a standard practice that helps both parties make well-informed decisions. We value transparency and open communication throughout this process. If you have any questions or need clarification at any stage, feel free to reach out to us.
- Initial Evaluation: We begin by reviewing your pitch deck, business plan, and any other relevant materials you’ve provided. This initial assessment helps us determine if your startup aligns with our investment criteria and goals.
- Management Team: We examine the background, experience, and skills of your management team. A strong and capable team is a crucial factor in the success of any startup.
- Market Analysis: We analyze the market you’re targeting, assessing its size, potential for growth, and competitive landscape. This helps us understand your startup’s positioning and differentiation.
- Product/Service Evaluation: We delve into your product or service offering, understanding its unique value proposition and how it addresses a market need.
- Financial Review: A comprehensive financial analysis is conducted, including revenue projections, cost structures, and funding requirements. This helps us gauge the financial viability of your business.
- Intellectual Property: We assess the status of your intellectual property, including patents, trademarks, and copyrights, to ensure their protection.
- Customer and Partner Validation: We may reach out to your customers, partners, and industry experts to validate your business claims and reputation.
- Legal and Regulatory Check: We review legal documents, contracts, and regulatory compliance to identify potential legal challenges.
- Operational Due Diligence: This involves understanding your operational processes, supply chain, and any potential operational risks.
- Reference Checks: We might ask for references to gain insights into your professional relationships and work ethics.
- Final Decision: Based on the findings from the due diligence process, we make an informed investment decision. If everything aligns positively, we move forward with the investment.
Open for Investment
What is an Open Round?
An open round is an investment opportunity where we invite our network of syndicate partners to join us in investing additional capital into your company. These partners consist of experienced angel investors and venture capitalists who share our passion for supporting promising startups.
Why Consider an Open Round?
Your startup has shown remarkable progress, and we believe it’s the perfect time to fuel its expansion further. By opening this round to our syndicate partners, we can tap into a broader pool of resources, expertise, and connections that could greatly benefit your company.
Syndication Matters!
Benefits of Syndicate Investment:
• Diverse Expertise: Our syndicate partners bring diverse industry knowledge and experience to the table. Their insights can provide fresh perspectives and help guide your strategic decisions.
• Network Access: Connecting with a broader investor network can open doors to potential customers, partners, and talent that could contribute to your growth trajectory.
• Increased Funding: The additional capital from our syndicate partners can provide the financial support needed to execute your expansion plans more aggressively.
Our Commitment:
Rest assured that our commitment to your success remains unwavering. We see this open round as an opportunity to enhance our partnership and empower your company vision. Our involvement will continue to go beyond just funding, as we’re actively engaged in offering mentorship, guidance, and introductions to industry leaders.
Next Steps:
If you’re open to exploring this opportunity, we’ll make arrangements to introduce you to our syndicate partners.
Be Prepared – Before You Start
Critical elements of the Startup EcoSystem™ funding application process and content include all of the following:
(i) Your business structure must be as a C-corporation or imminent plan to convert to this business structure.
(ii) Your offering must be in the form of either Preferred Equity or Convertible Note with a term of not more than 24 months;
(iii) The use of SAFE notes will not be considered.
(iv) The minimum investment or “ticket” size should be not more than $10,000. This is possible where your business has implemented the use of any one of several easily implemented and relatively low-cost cloud-based cap table solutions.
The Application Process
There are two steps that must be completed when applying for funding from Startup Ecosystem™.
- Complete our basic application. When you are ready to start, completing the basic application typically takes less than 15 minutes.
- If this is your first time making an application for funding, you will need to register for an account. Startup Ecosystem™ uses the Dealum Deal Flow Management Platform. With Dealum, when you register for an account you are given your own Company “Deal Room” where you own all of your information, and if desired you can invite other angel groups to consider your deal.
- Application questions are presented at each step in the deal flow process. Questions may be required or optional. Actual practice has shown that being able to answer the optional questions very often leads to improvement in investment decisions. Please complete each question to be considered by our reviewers all of whom are accredited investors with angel investment experience.
- You should be able to upload your Executive Summary, Sales & Expense forecasts for the next 3 to 5 years including cash flow, and P&L and Balance Sheet for the previous 1-2 years, if available. The application has multiple “tabs”. Each time you click the Next button on any tab, your answers will be saved, and you can then return to complete the application. When you have completed the questions to be answered, click the Submit button to send your application to Startup Ecosystem™, then proceed to step 2.
- Complete and submit the DealIQ Lite™ survey and report. DealIQ™ Lite is your “readiness report” based on the facts and metrics associated with your business at its current stage of development. This report is delivered to you to use as you may choose, and to Startup Ecosystem™ within your deal application in the Startup Ecosystem™ deal room for our members to review as a key part of your application.Our DealIQ™ Report, designed by experienced investors with broad investment portfolios, will comprehensively evaluate your business plan, analyzing the various elements in precise detail. The methods we use are objective and scientific, not rooted in subjective opinion. By element, by category, and overall, we can help you zero in on the aspects of your plan that need to be tuned up the most so that opportunities to pitch are not wasted.
- If you have an active application that you would like to update or to create and share a new funding round, please click Continue Your Application to go to your Company Deal Room that was created for you when you first applied to Startup Ecosystem™ where you can update an existing application, and create follow on funding rounds to share with Startup Ecosystem™ as well as other angel groups that use the Dealum platform. The link will open in a new tab and is best viewed either on a desktop or notebook or in landscape mode on cellphones and tablets.
- If your application is advanced into the Pre-Screening stage, you will be invited to subscribe to (for a nominal fee) the Startup Ecosystem™ DealIQ™ Full survey and report. The DealIQ Full report MUST BE COMPLETED, SUBMITTED, AND SHARED with your Startup Ecosystem™ deal room application to allow your application to be considered for advancement to formal Screening and Due Diligence.
Continue to explore the overall Startup Ecosystem™ application process flow as presented on this page. Use the Contact Us form on this website to contact Startup Ecosystem™ with your questions before submitting an application.