NTAN is a group of approximately sixty accredited investors based in the Dallas Fort Worth area, assisting and investing in early stage companies. We are interested in companies with innovative products or businesses and the potential for rapid growth within a sizable market. In general we do not invest in real estate, oil and gas or restaurant deals. The company should have a credible growth pathway to an eventual exit for the investors, such as IPO or acquisition.
Our “sweet spot” is a company that is beyond the “idea” stage, for example, with two to five employees and a few years of product development under its belt. If the company has any revenues these are usually less than $1M annually. Often the company has previously received “seed money’ from founders, family and friend, but now has capital needs for growth that exceed the capacity of these sources.
We usually invest between $200k and $800k in a single company, but can raise up to $2M by syndicating with our ATAN affiliates and other financing sources. At closing, your company will receive multiple checks written by individual NTAN members, each of whom invests $25k to $50k and receives preferred shares in the new company.
In most cases, one of our members joins the board of directors to monitor the investment and provide the company with valuable experience, expertise and business connections. Specifically, NTAN members have helped portfolio companies formalize strategy, secure distribution agreements, recruit top notch talent, negotiate transactions, lead additional funding rounds, etc. We will confer closely with you to assure that our investors and your company are aligned strategically.
Given the risks of angel investing, we look for an opportunity to realize a 10X return on our investment. This usually means that the company’s pre-money valuation should be in the $1M to $3M range; in most cases, higher valuations significantly reduce the feasibility of such returns. Of course, every company is different and individual facts may drive the number up or down. To understand currently accepted formulas for valuation, please review Valuation of Pre-Revenue Companies.
In order to apply, you must first complete our online application so that we may contact you for an initial interview. You may then be invited to one and possibly two of our monthly meetings where you will have the opportunity to present your company to our members. Interested members may form a due diligence team to evaluate your business and craft an investment in your company. For more information see Funding Process and Investment Criteria.