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HomeMy WebLinkAboutResolution 013-16RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 Resolution No. 13-16 Passed , 20 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH REV1 VENTURES WHEREAS, the City's dynamic local economy is the direct result of an entrepreneurial spirit; and WHEREAS, the City recognizes that in addition to its efforts to retain, expand and attract business, the City must also set the conditions for new business, technology and job creation; and WHEREAS, Rev1 Ventures is the lead agency responsible for accelerating business growth, job creation and prosperity for the 15 county Central Ohio region with a focus on operating a regional technology business incubator, working with entrepreneurs and investors to develop and launch technology start -up companies, and growing young companies that will provide the jobs of the future; and WHEREAS, the City and Rev1 Ventures must facilitate entrepreneurship in order to increase the level of entrepreneurial activity and improve the chances of establishing successful technology enterprises by honing their skills and providing access to necessary tools, technical and financial resources, and by working proactively to enhance the local entrepreneurial environment; and WHEREAS, it is the goal of both the City and Rev1 Ventures to accelerate the successful development of start -up and fledgling companies by providing entrepreneurs with an array of targeted resources and services in order to produce successful companies that will be financially viable, freestanding and create quality jobs for the region; and WHEREAS, Rev1 is designated as the lead agency in the Central Ohio region responsible for the administration of grant funding from the Ohio Third Frontier network and local public and private matching funds; and WHEREAS, the City intends to continue its support of the regional effort to create new companies, technologies and jobs by providing $200,000 in 2016 as matching funds for the entrepreneurial grant programs; and WHEREAS, the City has previously supported the Entrepreneurial Signature Grant Program and the Regional Capitalization Program since 2007 in partnership with Rev1, experiencing a nearly 39:1 return on investment in Dublin -based companies; and WHEREAS, the City and Rev1 desire to enter into an Agreement memorializing the responsibilities and commitments of each party to efficiently and effectively execute the program. NOW THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State of Ohio, of the elected members concurring that: Section 1. City Council hereby authorizes the City Manager to execute the Agreement with Rev1 Ventures, in the same or substantially the same form as attached hereto. Section 2. The City commits to a total of $200,000 to be paid to Revi Ventures in Fiscal Year 2016 as its local match towards grant programming and in exchange for the services outlined in the Agreement to be executed by the City Manager. Section 3. This Resolution shall take effect and be in force upon passage in accordance with Section 4.04(a) of the Revised Charter. IJ' 1 Passed this �Iay of �(;!9vLkaVf4 , 2016. ,Mayor - Pr 'di Officer ATTEST: Clerk of Council Office of the City Manager 1200 Emerald Parkway * Dublin, OH 43017-1090 ityof Dublin Phone: 614-410-4400 9 Fax: 614-410-4490 Cit Z To: Members of Dublin City Council From,: Dana L. McDaniel, City Mana Date.& February 18, 2015 im Re: Resolution No. 13-16 — Revl Ventures Agreement Attached for your consideration please find Resolution No. 13-16 authorizing the City Manager to enter into an Agreement with Revl Ventures (fka TechColumbus). This Agreement, also attached,, represents a continuation of services provided by Revl focused on new company, technology and job creation in exchange for the City providing matching funds for the Third Frontier grant funding program. The proposed Agreement with Revl for 2016 is consistent with previous Agreements approved by Dublin City Council and provides for the continuation of services by Revl to include the following: Provide one experienced staff member with a significant focus on Dublin. Maintain an office/presence at the DEC at Revl Ventures" expense. Facilitate and promote networks among entrepreneurial/technology start-ups. Assess the potential and legitimacy of start-up companies/ideas. Market and communicate to promote services and funding, Memo re Resolution No. 13-16 — Agreement with Revl Ventures February 18, 2016 Page 2 of 2 Staff recommends Council approval of Resolution No. 13-16 authorizing the City Manager to execute the proposed Agreement with Revl in order to receive services as described therein and to provide matching funds to Revl Ventures in the amount of $200.,000 in 2016. Please address any questions to Colleen Gilger. Agreement Between City of Dublin, Ohio and Revl Ventures This AGREEMENT (the "Agreement) is made and entered into this day of 20161 by and between the CITY OF DUBLIN, OHIO (the "City"), a municipal corporation duly organized and validly existing under the Constitution and the laws of the State of Ohio (the "State") and its Charter, and Revl Ventures ("Revl Ventures") an Ohio not-for-profit Ohio corporation, underthe circumstance summarized in the following recitals: I WHEREAS, the City's dynamic local economy is the direct result of an entrepreneurial spirit; and WHEREAS, the City recognizes that in addition to its efforts to retain,, expand and attract business, the City must also set the conditions for new business and job creation; and WHEREAS,. Revl Ventures is the lead agency responsible for accelerating business growth, job creation and prosperity for the 15 county Central Ohio region with a focus on operating a regional technology business incubator, working with entrepreneurs and investors to develop and launch technology start-up companies, and growing young companies that will provide the jobs of the future; and WHEREAS,, the City and Revl Ventures must facilitate entrepreneurship in order to increase the level of entrepreneurial activity and improve the chances of establishing successful technology enterprises by honing their skills and providing access to necessary tools, technical and financial resources, and by workin� proactively to enhance the local entrepreneurial environment; and WHEREAS, it is the goal of both the City and Rev1 Ventures to accelerate the successful development o start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services in order to produce successful companies that will be financially viable, freestanding and creat quality jobs for the region; and WHEREAS, Rev1 Ventures is designated as the lead agency in the Central Ohio region responsible for th .2,dministration of the ThirdFrontier Network grant funding consisting of funds from the Ohio 3rd Frontie ,,?,nd local matching funds; and WHEREAS, the City intends to continue its support of the regional effort to create new companies,, technologies and of by providing $200,000 in 2016 as matching funds for the ThirdFrontier Network program; and WHEREAS, the City has previously supported the Entrepreneurial Signature Grant Program, and the Regional Capitalization Program since 2007 in partnership with Revl Ventures experiencing a nearly 39:1 investment capital leverage in Dublin-based companies; and -w- HEREAS,, the City and Revl Ventures desire to enter into an Agreement memorializing the responsibilities and commitments of each party to efficiently and effectively execute the program. NOW, therefore, the City and Rev1 Ventures covenant agree and obligate themselves as follows: Services. Rev1 Ventures, as the manager of the Central Ohio Third Frontier Network program will, in a partnership with the City, provide the following services: Physical Presence. Rev! Ventures will establish a physical presence in the Dublin Entrepreneurial Center ("DEC") and provide a designated lead contact from the Rev Ventures team who is responsible for coordinating Revl Ventures services within th Dublin community. Revl Ventures will be responsible for the cost of its own office(s and all related expenses in the DEC. I b. Designated Lead's responsibilities. The designated lead will have responsibility forthe following: Provide Entrepreneurial development and outreach in Dublin and the counties of Delaware, Morrow,, Marion, Logan and Union and will serve as Revl Ventures' if. gateway" to the Northern and Western Central Ohio region. I -up companies best suited for program If Identify prospective entrepreneurial start and capital assistance with the assistance of the Revi Ventures team 4cm 111. Coordinate and communicate with both City Economic Development staflim and its associated consulting team regarding Dublin-focused programming. v. Attend, at a minimum, a monthly staff and consultant meeting and semi- monthly DEC coordination meeting, unless otherwise determined by the parties. v. Provide input to and when possible and appropriate provide resources in support of DEC programming, as determined by Revl Ventures. vi. Maintain a Charter Membership in and participate on the Board of The International Entrepreneur (TIE-Ohio). vii. Provide the City a Quarterly Activity Report summarizing the type and amount of activity in Dublin. The format and specifics of the content to be included in the report will be mutually agreed upon between the City and Revl Ventures. d. Coaching and mentoring. Revl Ventures will provide to promising entrepreneurs and high-growth companies access to its experienced and successful team of in- house mentors, including: CFO in residence, CMO in residence, Customer Acquisition expert, technology commercialization experts and startup coaches in order to create high-return commercialization ventures and take promising ideas to market. e. First Connect Network. Startups with advisors raise 7X more money and have 3.5X better user growth, according to the Startup Genome Project. Revl will provide access to its industry-leading network to support our regions' high-growth startups in these four critical areas: Advisors- More than 100 of the most experienced advisors who have been there and done that: founding and growing successful companies. E�Lp �rts: Hand-picked industry experts in legal, accounting., HR., marketing, produc- development and more will provide pro-bono or reduced cost services to startups. Custg-mer..s: More than 30 companies in our region have agreed to provide startups. access to C-level executives to pitch their companies, seek input on products, and access members' connections. Talent: Rev1 promotes the job openings of our region"s high-growth firms on its dedicated job board. We are also providing access to tools and expertise to support companies as they build high-growth teams. In addition, Rev1 Ventures will also work to recruit Dublin companies and individuals to provide services as part of the First Connect Network. f. Educational Support. Rev! knows that successful entrepreneurs need support and education from a young age. We will assist and support the City's collaboration with, area schools, colleges/ universities, public agencies and organizations to promote entrepreneurship and technology to students of all ages. The goal is to invest long term in our youth to promote technology, entrepreneurship and potentially workforce development. g. Access to capital. Through its coaching and mentoring services, which are the entry point to all Revl Ventures funding sources, the City and regional companies will have local accessto: Concept Fund: Equity investments to assist capital efficient companies with market entry and to validate early tech ideas based on intellectual property (IP), validate IP, build prototypes, complete marketing studies, etc., for the most promising opportunities. 'i Catalyst Fund: Seed stage convertible debt funding for the most promising opportunities. With each investment, Revl Ventures will assistthe companyto reach the goals of growth and follow-on, institutional or angel funding. iii. Ohio TechAngel Funds: local angel funds managed by Revl Ventures which make equity investments in Ohio tech startups. iv. X Squared Angel Fund: local angel funds managed by Revl Ventures which focuses on companies with at least one woman at the C level who owns significant equity in r` V. Reel Ventures and SBDC expertise and access to SBA loan opportunities for small businesses. h. Acknowledgement. RevI Ventures agrees to acknowledge the City in its sponsorship opportunities, website and other opportunities as a Third Frontier Partner. Ill. Miscellaneous. a. Notices,. Except as otherwise specifically set forth in this Agreement, all notices, demands, requests,. consents or approvals given, required or permitted to be given hereunder shall be in writing and shall be deemed sufficiently given if actually received or if hand-delivered or sent by recognized,, overnight delivery service or by certified I L the City: City of Dublin, Economic Development 5800 Shier Rings Road Dublin, Ohio 43016-7295 WE 1275 Kinnear Road Columbus, Ohio 43212 The parties, by notice given hereunder, may designate any further or different addresses to which subsequent notices; certificates, requests or other communications shall be sent. Most Favorite Nation. The City shall be afforded the same opportunity to use ESP Grant dollars in the same manner RevI Ventures may allow grant dollars to be used in other communities provided such use is not covered elsewhere or otherwise permitted or governed by this Agreement. 41. Successors. This Agreement shall be binding upon and inure to the benefit of Rev Ventures and its successors and assigns. i e. Recitals. The City and RevI Ventures acknowledge and agree that the facts and circumstances as described in the Recitals hereto are in an integral part of this Agreement and as such are incorporated herein by reference. f. Amendments. This Agreement may only be amended by written instrument executed by the City and Revl Ventures. g. Executed Counterparts. This Agreement may be executed in several counterparts. each of which shall be regarded as an original and all of which shall constitute but one and the same agreement. It shall not be necessary in proving this Agreement to produce or account for more than one of those counterparts. j. Captions. The captions and headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or section of this Agreement. L Survival of Representation and Warranties. All representations and warranties of Rev1- Ventures and the City in this Agreement shall survive the execution and delivery of this Agreement. I 11 Pill IN WITNESS WHEREOF, the City and Revl Ventures have caused this Agreement to be Is executed in their respective names by their duly authorized representatives, all as of the date first written above. I hereby certify that the funds required to meet the City's obligation, payment, or t cxpenditure under this Agreement have been lawfully appropriated or authorized for such purpose and are free from any obligation now outstanding. rev ventures forCOLUMBOS DUBLIN PARTNERSHIP REPORT REVI VENTURES - Q4 2015 Rev1 is a seed stage venture development organization that combines investment capital and strategic services to help entrepreneurs build products that people want and companies that succeed. Our seasoned, data - driven team delivers early market validation for startups. We help them connect with their first strategic advisors, link to their first group of industry experts, and find their first customers. We manage a continuum of investment support from corporate, community, and innovation partners, as well as Ohio Third Frontier. In 2015, with your support, we came further in one year than any other region in the United States. We invested in 29 companies totaling more than $3.8MM, 60 percent more than in 2014. Columbus became the #1 Fastest Growing City for Startup Activity according to the Kauffman Index. Rev1 was named the #1 Top VC Investor in the Great Lakes region according to Pitchbook. We continued our focus on early market validation with 141 entrepreneurs and teams going through Concept Academy, resulting in 38 new clients. Client companies generated $161MM in revenue and created and retained 2,347 jobs. 2016 is packed with opportunity. We're expecting to bring online more than $40MM in new funding for startups. That doubles our capital funds under management, affording not only more early stage funding for new startups, but the critical follow -on capital that these young companies must have as they add customers and grow. BUSINESS METRICS During the last quarter of 2015, we held one Concept Academy session and added 13 new client companies. 04 Quarter Deal Flow October 1 - December 31, 2015 INQUIRIES 107 FIRST MEETINGS 31 CLIENTS 10 POSITIONED FOR FUNDING 1 2 REGIONAL 4TH QUARTER INVESTMENT ACTIVITY October 1 - December 31, 2015 Rev1 Ventures Investment $2,161,082 External Investors Angel - Group $899,732 Angel - Individual $5,808,850 Corporate $549,766 Founder Capital $145,009 OTAF Member $553,932 Private Sources $5,109,600 State Sources $1,025,000 Total External Investment $14,091,889 TOTAL INVESTMENT $16,252,971 :J IT011c] 17-3 Z The goal of our First Connect Network are to provide startups with expertise in four critical areas: strategic advisors; industry and functional experts; customers (early adopters, beta, and referenceable), and talent. More than 75 percent of our startup clients leverage these services. In Q4, First Connect delivered the following to startups: $147,000 in Expert services provided by our partners $231,000 in hands -on Advisor services 26 jobs promoted on our Job Board to help startups and talented job seekers make a match 6 qualified opportunities among targeted customers. Rev1 spent significant time developing our 2016 strategy for portfolio company support of talent aquisition, and strategy, including: Researching priority needs with portfolio companies, Meeting with industry experts to design program framework and potential impact areas, and Board -level strategy sessions to address talent challenges at a startup. In 2016, Rev1 plans to launch talent programs to impact culture development, hiring planning, and candidate screening. We help entrepreneurs build great companies. W W O J W 0 H U oa N � TECHCOLUMBUS IS NOW :EVI VENTURES. With the capital of a VC and the connections of an accelerator, we support startups through the first phases of growth to increase their probability of success. Our team of experts leads an ongoing, data - driven process that ensures entrepreneurs develop products people want and companies people need. Changing the Equation We are a venture development organization with 100+ years of combined direct operational and investment experience. We've been there and done that —and we've built all of that expertise into a customer - centric venture development model that works for startups. Services and Funding to Fuel Startup Success Accelerate Our advisors work directly with companies, one -on -one, to tackle the challenges and achieve the milestones of a growth plan that leads to startup success. Advise Our vibrant network of more than 100 of the right experts, customers, advisors, and talent helps clients land their first customer, build their first team, and achieve the milestones that lead to first round financing. (e erd ,,, Fund Rev] helps startups achieve the milestones that make them fundable. We manage a continuum of capital with funding at every key phase— Concept, Seed, and Launch. Revl's Seed portfolio produced $14MM in revenue and 160 new jobs. Investments were made in 18 unique companies. Columbus became one of the most active seed regions in the Midwest. Learn More at www.revlventures.com. rev ventures Porwwmii B Why has TechColumbus rebranded as Revl Ventures? Rev] Ventures represents the organization we've become and where we're headed. We're laser focused on one purpose: helping entrepreneurs build great companies. We deliver on that through an innovative combination of services and funding. We wanted a new name that was ambitious and progressive, that met our direction and goals. What does the new name mean? Ill speaks to how we engage with an entrepreneur at the earliest stage and then take a hands -on approach to helping entrepreneurs create momentum and achieve their critical firsts — milestones that all startups must accomplish to succeed: • validate their first product • define their first market • pull together their first first management team • land their first customer • create their first Board • achieve first revenue • connect with their first advisors • secure their first funding Ventures speaks both to the innovative ventures we're helping entrepreneurs build and to the venture industry in which we've grown up. Our experienced venture team has more than 100 years working in and for early stage companies. We've been there. We can help startups accelerate and succeed. How will Revl communicate the name change? On March 10, Rev] will announce the change to the media and the community through a press release and related launch campaign. The campaign, titled "What if ", will feature eight innovative companies that have been supported by the organization and the Columbus region. Our new website, revlventures.com, will go live March 10. Additional outreach includes: • On March 10, our clients, investors, and partners will receive an email announcing the news in a brand anthem video. Social media promotions will begin that day as well. • On March 11, the same targeted list of constituents will receive a direct mail piece promoting the "What if" campaign and the name change. • On April 9, Rev] will host an Open House in our offices to showcase clients as well as the Rev] team and our approach. Please save the date and plan to attend! Look for more details soon. rev ventures forCOLUMBOS DUBLIN PARTNERSHIP REPORT REVI VENTURES - Q4 2015 We have also significantly expanded our support and investment in helping our portfolio companies sign up their first customers. We have dedicated Greg Pugh, an entrepreneur and C -level venture executive, to lead this initiative. NNLIuPL`I[d_111 111101ZF7-3 Z IDIATI=1ZYM October 22, Rev1 conducted its inaugural 2015 Demo Day as 14 passionate entrepreneurs from 11 Rev1 portfolio companies took the stage before an audience of 377 investors, First Connect companies, business people, and community leaders, plus 277 more viewers of the Demo Day live feed. 313ar Biologics • Ardina • Clarivoy • GenomeNEXT MentorcliQ • Nexosis • ProteoSense • Seamless Contacts • Simple -Fill • TicketFire • trueDOK In addition to the 11 startups on the roster, three more companies presented, including GiftPocket, a company founded by Concept Academy's youngest graduate. She's 13 years old and in middle school. Later that same day, Rev1 conducted the second annual VentureNEXT celebration honoring the Columbus region's entrepreneurship and innovation. Serial entrepreneurs, Tanisha Robinson, co- founder and CEO of Print Syndicate, and Ray Shealy, president and CEO of SafeWhite, Inc., emceed the event, welcoming more than 400 attendees and announcing four startups honored with awards at VedntureNEXT. Updox Milo Biotechnology Fastest Growing Company Spinout Simple -Fill trueDOK Best Backyard Effect Customer Pivot Additionally, four Central Ohio students were recognized with scholarships: Keevyn Madeleine Gagne Baden - Winterwood Dublin Coffman Metro Early College High School High School Michael Fearer Creighton J. Parent The Ohio State University The Ohio State University Two companies, Ardina and EduSourced, joined our pilot program of expanded PR support for portfolio companies that are ready for market launch. EduSourced's CEO was named to Forbes' 2016 30 Under 30 Education list, while Ardina saw immediate success with multiple outlets providing coverage: Ardina Comes in at #4 on Columbus' Best New Startups of 2015 - The Metropreneur Health -care startup Ardina connects patients, doctors 24/7- Columbus Dispatch Open Enrollment: What To Think About When Selecting Health Insurance - Young Upstarts In December, Rev1 gained national recognition for publishing Startup IQ, a simple quiz to help wnnna-be entrepreneurs determine if they have the foundation to take their idea to the next level. Hundreds of people have taken and scored the quiz. Many local and national media outlets covered our activities. The Columbus Dispatch - Health -care startup Ardina connects patients, doctors 2417 Columbus Business First - Updox sees Dublin's Bridge Park as a recruiting tool Biospace - Minimally Invasive Device's FlowShield shows statistical significance in reducing laparoscope removals during surgery. TechCrunch - The Midwest Startup Formula Will Change The Status Quo for Building Businesses Q4 PORTFOLIO BUZZ Simple -Fill raises $1.7M to demonstrate CNG technology- Columbus Business First Inmobly lands another $480K investment for their Ohio State video - caching spinoff technology- Columbus Business First Online gift- giving startup Jifiti raises $3.3M in funding round led by Evite's owner - Columbus Business First lou Dublin 2015 Quarter 4 Impacts GENERAL DEAL FLOW JANUARY 1 - DECEMBER 31, 2015 INQUIRIES 20 BIOSCIENCES FIRST MEETINGS 23 IT CLIENTS 1 POSITIONED FOR FUNDING 0 FIRST CONNECT EXPERT SERVICES ACCOUNTING HR /RECRUITING LEGAL TOTAL TOTAL COUNT 3 1 5 9 INVESTMENT ACTIVITY INVESTMENTS January 1 - December 31, 2015 Rev1 Ventures Investment External Investors Corporate Founder Capital OTAF Member Private Sources Venture Capital Total External Investment TOTAL INVESTMENT $100,000 $250,000 $100,000 $30,000 $3,500,000 $4,250,000 $8,130,000 $8,230,000 5 IR? AMOUNT INVOICED $21,192 $369 $9,288 $30,849 RETURN ON INVESTMENT Investments made over all time Total Dublin Investment Rev1 Ventures OTAF Other Investments Other Grant or Debt Total Investment Sales Revenue Total Income Jobs Total Leverage Investment Capital Leverage $1,625,000 $2,044,044 $799,998 $55,029,452 $5,182,000 $63,055,494 $37,155,027 $100,210,521 137 62:1 39:1 lou Dublin 2015 Quarter 4 Impacts 0 COMPANY AND PROGRAM UPDATES COMPANY UPDATES Ardina had its product launch in October. With support from Rev1's PR program, they had a successful PR campaign with coverage in both local and national publications. They were also a featured Demo Day Company. Updox continues its rapid growth and has seven open positions on the Rev1 Job Board, including position such as Senior Software Engineer, Quality Assurance manager, Graphic Designer, Business Development Manager and others. Updox was honored at our 2nd annual VentureNEXT Awards as the winner of the Fastest Growing Company Award, based on job and revenue growth. PROGRAM UPDATES Rev1 Ventures hosted Cool Tech Girls at Rev1 Labs in early November. About 12 middle school and high school young women attended to learn about coding. Students also toured the facility and learned about Rev1 clients that may change our world. Rev1 personnel were on hand and interacted with students throughout the evening. Rev1 hosted Kanwal Rekhi for a breakfast discussion on what makes a successful entrepreneur on Noveber 12th. Kanwal then met with six Rev1 clients and one DEC tenant for one -on -one discussions with the entrepreneurs and Rev1 advisors to discuss business models, challenges, raising venture capital funds etc. Rev1 personnel met later in the day for a TiEOhio board and recruitment meeting that Kanwal attended as well. Rev1 personnel assisted with the Dublin Asian - Indian Summit where Kanwal was the keynote speaker. A panel discussion followed that was moderated by Rev1 personnel. Ardina Ardina Comes in at #4 on Columbus' Best New Startups of 2015 - The Metropreneur Health -care startup Ardina connects patients, doctors 24/7 - Columbus Dispatch Open Enrollment: What To Think About When Selecting Health Insurance - Young Upstarts Updox Practice Fusion Expands Partnership with Updox Updox sees Dublin's Bridge Park as a recruiting tool lou 411111� Dublin 2015 Quarter 4 Impacts DEAL FLOW TERMS DEAL FLOW: all new business ventures that are submitted to Rev1 Ventures. INQUIRY: a status level for a new business venture representing the venture is at the earliest stage in the intake process and that more information is needed before we can move on to the next steps. Generally, additional information needed is an executive summary, early market validation, or clarification on a concept. FIRST MEETINGS: the initial meeting held with the entrepreneur of a new startup business venture in order for Rev1 Ventures to take a closer look at the idea and vet out the business model. The main topics covered in the first meeting generally revolve around the problem and solution a business is addressing, the market, revenue potential, competitors, milestones /goals and needs moving forward. CLIENTS: startup ventures currently engaged with Rev1 Ventures and using Rev1 Ventures resources. INVESTMENT TERMS ANGEL GROUPS: investment funds that are pooled by a collection of high net -worth angel investors. These groups all form a part of the Angel Capital Association, a national network of angel groups. INDIVIDUAL ANGEL INVESTORS: high net -worth individuals who meet investing criteria established by the Securities and Exchange Commission. Currently, the SEC defines an angel investor as someone who, excluding the value of their residence, has a net worth of over $1 million or has an annual income over $200,000. OTAF MEMBERS: part of the Ohio TechAngel Funds, an angel fund operated by Rev1 Ventures. More than 340 high net -worth accredited investors contribute to the funds, which invest in high - potential IT, software, bioscience, medical device, and advanced material startups in Ohio. VENTURE CAPITAL: investment that comes from individual investors, investment banks, venture capital firms or other entitites that pool investments. Whereas the Ohio TechAngel Funds invests in early -stage companies, venture capital is often secured once companies have started to attain customers and revenue. Venture capital, like angel investment, is aimed at high - potential, high - growth companies.