Delaware Crossing Investor Group seeks early-stage, high-growth businesses with high investment return potential, including businesses that require funding of $250,000 to $1,000,000 to reach the “next level” (e.g., institutional funding, positive cash flow, next inflection point in company valuation). At least one of the members must have expertise in the portfolio company’s industry. As a general rule, one member with this expertise will serve on the portfolio company’s board of directors or advisory board.
Ideal portfolio companies have finished their development work and are seeking funds to commercialize their product. Delaware Crossing Investor Group looks for situations where the capital sought will take the company to the next level, and materially increase its valuation.
A company must be able to demonstrate how it will use the investment to complete at least some of the following:
- Proof of concept
- Prototype of its product or technology
- Patent filing (for broad patent)
- Product development
- Market research
- Product launch
- Major contract or customers
- Management team
- Reduce other investment risks
Not all companies will meet each criterion listed above. However, every company must meet the risk/reward mix established by the Screening Committee.
The group targets companies who are generally not candidates at the present time for institutional venture capital financing due to the size of the investment they seek and/or their stage of development. A Screening Committee consisting of approximately five members selects prospects that have outstanding proposals and that offer investors an exceptional opportunity. Among the factors considered by the Screening Committee are: strength of the management team, growth prospects, competitive dynamics of the market addressed, and quality of the business plan and the business model.
Specifically, Delaware Crossing Investor Group is looking for:
- A market opportunity sufficiently large to create a business with at least $10 million in annual revenues;
- A compelling, well articulated strategy for capturing and defending a significant market share;
- Proprietary technology or other strong barriers to entry;
- Strong management (not necessarily a complete team) with relevant and successful experience;
- An exit strategy for the investors;
- Evidence that the funding requested will accomplish the goals articulated in the proposal;
- A desire for advice and coaching; and
- A company valuation that fits within risk/reward expectations.
If your company meets these guidelines, Submit A Business Plan.
Unless there is an existing personal connection, Delaware Crossing Investor Group limits its interest in investing in companies to those based in Bucks, Montgomery, Northampton and Lehigh counties in Pennsylvania and Hunterdon, Mercer and Burlington counties in New Jersey. The only other exception is in the case where Delaware Crossing Investor Group co-invests with one or more other angel organizations.