Process

VCET offers an investment process and compelling incubator program resources to reduce risk, improve company performance and meet the public objectives for this seed capital program. The investment process takes considerable time and effort, so be prepared and forewarned. Funding is highly competitive and not all worthy firms will be funded.  The process includes:

Initial Screening: Firms will be reviewed for eligibility, suitability, entrepreneur qualities, and initial assessment. A response declining to pursue, offering alternative funding sources, or seeking follow up information will result.

Initial Due Diligence: Firms experience an in-depth review and assessment on their markets, business model, financials & capital path, existing & prospective management team, technology & products, sales & distribution, and comparative advantages, among other areas. 

Advanced Due Diligence: Few firms reach this step. Transaction structure, valuation, terms, corporate and legal due diligence and remaining questions are completed. If an investment is considered desirable and fund objectives can be attained, then an Investment Recommendation is prepared for the Investment Committee and any invited domain or subject matter experts.

Investment Decisions: The independent Investment Committee has final determination on the proposed term sheet and investment recommendation. This committee is responsible for the approval of all investments.

Adding Value and Infrastructure: Portfolio firms have unique and advantageous access, if they so select, to facilities, professionals, networks, specialized research assets, and strategic partners associated with the VCET incubator program. In addition to Board participation, the Fund Manager and VCET team are actively engaged with firms on building teams, accessing critical first customers, strategic partnerships, corporate strategy, networking and training opportunities, mergers and acquisitions, and executive mentoring. All of which lowers burn rates, lowers investment risk, hastens progress towards “value-changing” events, and increases probabilities for market based returns and success as Vermont based employers.

Follow-On Capital and Investment Exit: For most seed stage firms, follow-on funding is necessary to achieve their potential. We offer an exceptional network of local, regional, and national venture firms, corporate investors, angel investors, grant and debt options to fund firm growth and next stage development. Our team will be involved in sourcing follow-on capital and active regarding exit and liquidity opportunities.

YOUR VCET ADVANTAGE

Not all capital is equal in its benefit to entrepreneurs. With VCET as your financial partner, advocate, and supporter, advantages include:

An Unfair Start-up Advantage – A diverse team of supporters, experts and proponents that provide portfolio firms with unique and compelling advantages to more rapidly build a team, reach a new market, fund growth, and realize market potential.

Partner Network– Portfolio firms have access to an unequaled ecosystem and networked infrastructure surrounding new venture creation and growing successful firms in Vermont.

Incubator Program Relationship – Founders and their firms have access to substantive programs and services, flexible and low-cost office space, mentors and professional advisers, interns and graduate fellows and Entrepreneurs-in-Residence resources among other benefits. Check out the incubator resources here.

Experience as Entrepreneurs – Programs, services, and attitudes are aligned around entrepreneur success and support. The VCET team is deep, varied, experienced, and ready to assist in your success at every stage from formation to growth to exit.