Frequently Asked Questions
What types of opportunities interest InvestAmerica?
InvestAmerica diversifies its investments by investing in portfolio companies across many industries and geographic locations. Investments will be made across a range of manufacturing, service, distribution and technology companies. Most investments are expected to be in later-stage companies with established sales and profitability. Some investments may be opportunistically made in growth stage companies. Preferred opportunities are growth financings, management buyouts and recapitalizations.
What is the preferred investment amount? Structure?
Prudent first round investing is critical. InvestAmerica funds will typically invest $1-$2 million in the first round of financing and usually be a member of a syndicate that may be providing $3-$10 million of financing. Appropriate capital structures favor the following instruments: subordinated debt with warrants to acquire common stock or conversion rights; preferred stock with warrants to acquire common stock or conversion rights and common stock.
What information does InvestAmerica find most helpful in evaluating a company?
A concise executive summary typically provides us with the information we need for a preliminary evaluation. A complete business plan with key business topics addressed including company history; management experience and success; product, company and industry description; marketing plan including market size, trends, competition, customers and market share; historical and projected financials including balance sheet, income statement and cash flow; and financing requirements. InvestAmerica backs management teams and a complete management group is critical. InvestAmerica seeks management with demonstrated integrity, successful historical results and industry balance and depth. InvestAmerica's philosophy requires consistent information sharing, mutual goal setting and a driven commitment to achieve planned financials goals.
How can I submit a business plan?
We welcome business plan submissions by mail. Due to the tremendous volume of opportunities we review, it is difficult and time consuming for InvestAmerica to manage deal flow by email.
How long does it take to make an investment decision?
You can generally expect to hear back from us soon after submitting information. After we have met with the company's management team and deemed that there is a good fit, we will perform extensive due diligence to ensure that we fully understand the business and share the vision of the entrepreneurs. This takes 30 to 45 days on average. We are sensitive to the fact that every financing is unique and we endeavor to be as responsive as possible to special circumstances that may require an expedited response.
What level of participation/oversight will InvestAmerica provide?
InvestAmerica has a long-standing tradition of active, hands-on portfolio management. Portfolio management may include participation on the board of directors or observation rights, attendance at key management strategy sessions, monthly financial and annual audit reviews, input to annual business planning, participation on audit, compensation and management selection committees and in general the development of close working relationships with key management.