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Accelerate Jonesboro Angel Fund
Jonesboro Regional Chamber of Commerce is proud to announce a new partnership guaranteed to generate business within our community. Announcing Accelerate Jonesboro Angel Fund (AJAF), a partnership allowing the chamber to introduce angel investor funds to early stage Jonesboro based corporations.
Manu Nair, owner of his own start up in Jonesboro and Chair of the Chamber’s Innovation and Technology Committee, will take on the Managing Member role of the fund. “Our goal is to turn great ideas into Start-Ups and eventually into prized companies.” This partnership hopes to contribute to 12-24 high net-worth corporations in the next few years. This will create the largest Angel Network in Northeast Arkansas.
Like on popular TV shows, the local applicants to this program will be in the late “seed” or “start-up” lifecycle of their development, with a proven plan in place. Applicants must show commercial feasibility and must demonstrate a history of revenue. All applicants must be based in the Northeast Arkansas Region, and be organized as a C-Corp legal entity incorporated in Delaware or Arkansas.
AJAF will make an initial investment of $50,000 as seed capital. Individual members who are interested in increasing their exposure may write checks and invest alongside the fund as “sidecars.” AJAF will use a standard term sheet and deal documents based on the NVCA model term sheet. Standard deal terms are: Participating convertible preferred equity with an 8% cumulative dividend (paid at exit); an incentive stock option pool of 10-15%; cash investment by the founders (in most cases); a 5 year redemption feature; and the right to appoint a member of the company’s Board of Directors (typically a five seat board). AJAF and the founders should be aligned with the goal to build value and sell the company in 3-5 years.
Inventors/Entrepreneurs will be required to pay a $500 administrative fee to the chamber and sign a participation agreement. After the first step of submitting a business plan and funding application, applicants with suitable and attractive opportunities will be asked to pitch to the AJAF Screening Committee for the first step in the process to making their pitch to the Angel Investors.
E-mail application to firstname.lastname@example.org.