1.      What is the Ohio State Early Investor Network?

The Ohio State Early Investor Network (OSEIN) aims to foster an entrepreneurial relationship between Ohio State related investors and entrepreneurs. Investors will hear regular pitches from companies founded or run by Buckeyes or licensing technology from The Ohio State University. Companies can seek investments from accredited investors through network pitches, providing transparency and simplicity to entrepreneurs wanting to reach Buckeye investors.

 2.       What is an angel or early-stage investor?

Angel or early-stage investors are private individual investors focused on financing early or growth stage business ventures in exchange for equity. Unlike a venture capital firm that uses an investment fund, these investors use their own net worth. They may also be more patient with entrepreneurs and open to providing smaller dollar amounts for a longer time, but they do want to see an exit strategy at some point, typically through a public offering or an acquisition.

Investors must meet the SEC accredited investor requirements:

Financial Criteria

• Net worth over $1 million, excluding primary residence (individually or with spouse or partner), OR

• Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year,

- OR -

Professional Criteria

• Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82),

• Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company), OR

• Any “family client” of a “family office” that qualifies as an accredited investor.

 3.       Who can join the Ohio State Early Investor Network as an Accredited Investor?

Investor membership in the network is open to Ohio State Alumni, Students, Parents, Spouses/Partners, Grateful Patients, Fans, Friends, and Supporters of the mission of the program who meet the Accredited Investor requirements set forth by the SEC. Membership is not open to those representing accredited investors other than themselves or investing on behalf of an investment fund. Network investors are encouraged to invest in at least one company a year, but there are no activity or minimum investment requirements to remain an active member.

All investors must attest to their Accredited Investor Status on their application to the network and recertify their status annually after acceptance. Staff will accept this attestation as certification of the required income, net worth or experience as set forth in 17 C.F.R. § 230.501(a) (2022) by the SEC.

4. How do investments through OSEIN work?

The Investment Committee reviews and selects companies to pitch their business and investment opportunity to network investors. For investors interested in a company, OSEIN facilitates due diligence and investment negotiations. Investments are made via Special Purpose Vehicle (SPV) to the company, consolidating all interested investors into one entity.

5. What are the benefits of joining OSEIN?

As an OSEIN Investor you:

• Get access to a curated pipeline of investment opportunities,

• Share due diligence and expertise,

• Collaborate, network, and invest with other like-minded investors who have a wide range of industry and investment experience and share an Ohio State bond,

• Have the ability to make an impact and increase your Ohio State legacy by helping fellow Buckeyes grow their companies with capital and support,

• Have the opportunity to engage with Ohio State’s expanding entrepreneurial activities, ecosystem, and research and

• Membership in the Angel Capital Association with access to angel investing education and professional development.

6. Are there any membership fees or requirements?

Ohio State Early Investor Network members are required to pay annual membership dues of $1,500. OSEIN is also offering a one-time Founder Membership for $15,000 available for the first year of the program which provides membership for the lifetime of the network.

Membership is not open to those representing accredited investors other than themselves or investing on behalf of an investment fund. Network investors are encouraged to invest in at least one company a year, but there are no activity or minimum investment requirements to remain an active member.

7. What is the Emerging Investor program?

Ohio State alumni who do not qualify as accredited investors or are seeking more experience before joining the investor network, may join the Emerging Investors program. Emerging Investors will assist with business development and will play a significant role in deal due diligence providing in depth experience. Additionally, they will be paired with an investor in the network as a mentor. Continuing education opportunities will be provided to Emerging Investors on topics like venture financing, deal sourcing and business development, or portfolio management. There are no membership fees to join the Emerging Investor program.

8. What companies are eligible to approach the Ohio State Early Investor Network to pitch?

To be eligible to approach the Ohio State Early Investor Network for investment the company must:

• Have an Ohio State alumni, current student, faculty and staff, or former student who was enrolled but did not complete their degree as a company founder, technology inventor of Ohio State owned property or c-level/director within the company, OR

• License technology from the Ohio State University.

OSEIN is open to startup ventures at all stages of growth and funding seeking capital. OSEIN is open to companies in all sectors other than alcohol, tobacco, marijuana, firearms, gambling, or pornography. There are no minimum raise requirements to approach the network, though proposed deal terms for interested investors must be submitted prior to a pitching. Companies that have already received an investment through the OSEIN may approach the network to seek follow-on investments.

Meeting these minimum requirements does not guarantee companies will be selected to pitch to the network. Companies will be evaluated by program staff for qualification and selected to pitch by a committee of network investors. Selected companies will be required to complete a due diligence process led by network investors and emerging investors should any network investors make a commitment to invest. Any companies unable to complete the qualification or due diligence process will not be considered by the network but may approach the network again in the future. The Governing Board and program staff reserve the right to limit the number of times a company may approach the network to ensure equitable access.

Understanding that all companies interacting with OSEIN will not be ready to pitch to the full network, we are working with the other Keenan Center programs to extend educational opportunities to alumni entrepreneurs.

9. How can I become a member?

• To join as an Accredited Investor, click here to fill out the application.

• To join as an Emerging Investor, click here to fill out the application.

• To approach the network for investment, click here to fill out our company intake form.

10. What types of startups or businesses typically pitch?

We present primarily early-stage startups across all sectors, including technology, healthcare, consumer products, and more. These companies may vary based on market trends, investor preferences, and the potential for scalability and growth. We aim to identify innovative, high-potential ventures with strong management teams and exciting ideas.

11. How do you select the startups or businesses to pitch?

Our network employs a selective screening process. Our Investment Committee evaluates startups based on factors such as market potential, scalability, team competence, competitive advantage, business model viability, and the alignment of the investment opportunity with the preferences of our investor network. We conduct screenings, initial due diligence, and engage in discussions with entrepreneurs before they pitch to network investors.

12. What is the average investment size?

The average investment size within OSEIN can vary depending on the specific opportunity and the preferences of individual investors. While some investors may make smaller investments in the range of tens of thousands of dollars, others may invest more in a single opportunity. The investment size may be influenced by factors such as the stage of the startup, funding requirements, and the potential for growth. We do not have a minimum investment requirement for the network, but companies may set minimums themselves for investment.

13. Can I invest individually, or do I have to invest as part of a group?

If you are investing in a company that has pitched to the Ohio State Early Investor Network, you offer the opportunity to invest as a group through a Special Purpose Vehicle. This can increase the effect of the investment by bringing multiple investors together as a single entity on the company’s capitalization table, and simplify management of the investment for both the company and the investors. There are additional fees associated with the formation and management of the special purpose vehicle, so should only one or two investors be interested in the deal they may be able to invest directly with the company with company approval.

14. Are there any risks associated with angel or early-stage investing?

Risks of angel or early-stage Investing:

• High failure rate: Many startups fail, and angel investors may lose their entire investment.

• Illiquidity: Investments in startups are typically not easily convertible to cash.

• Market and industry risks: The startup may face market challenges or be in a volatile industry.

How to balance these risks:

• Diversify Your Portfolio: By spreading your investments across different startups and sectors, you reduce the impact of any single investment failure on your overall portfolio.

• Conduct Thorough Due Diligence: Evaluate the company's business model, market potential, competitive landscape, financials, and the background and expertise of the founding team.

• Active Involvement and Support: Actively engage with the startups you invest in, offering support, mentorship, and guidance when possible.

• Stay Informed and Educated: Continuously stay updated on market trends, emerging technologies, and industry developments.

• Understand Your Risk Tolerance: You should only allocate a portion of your overall investment portfolio that you are comfortable with potentially losing.

15. How do I monitor my investments?

The Ohio State Early Investor Network uses a deal flow platform, Venture360, to coordinate and distribute all network and deal information. Your investment portfolio will be tracked on the platform allowing you real time access to all deal information.

16. What is the due diligence process for evaluating potential investments?

Companies fill out an initial 40 question due diligence questionnaire. This is reviewed by the Investment Committee and available to investors prior to the company pitch. After the pitch, if there is sufficient interest, an investor deal lead will form a due diligence verification team to review and verify the information provided in the due diligence questionnaire. Investors may have additional questions for the company that will be answered at this time.

17. Can I request a meeting to discuss my interest in the network?

Yes! Please email OSEIN@osu.edu.