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HomeMy WebLinkAboutResolution 010-17RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 Resolution No. 10-17 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, Revl dentures 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 Revi dentures 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 working proactively to enhance the local entrepreneurial environment; and WHEREAS, it is the goal of both the City and Revl dentures 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, Revl 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 20-1-Y 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 200Y in partnership with Revl, experiencing a nearly 30:1 return on investment in Dublin -based companies; and WHEREAS, the City and Revl desire to enter into an Agreement memorializing the responsibilities and commitments of each party to efficiently and effectively execute the program. NOW, 74, EREFORE, 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 Revl 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 Revl Ventures in Fiscal Year 2017 as its local match towards grant programming and in exchange for the services outlined in the Agreement to be executed by the City Manager. RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 Resolution No. 10 -17 Passed Page 2 of 2 ,20 Section 3. That this Resol n shall take effect and be in force on the earliest date permitt by law. Pa se this � Lt 1�l.LG� -Y , 2017. 7 ayor- Presidjpg Officer ATTEST: Clerk of Council I Office of the City Manager 5200 Emerald Parkway # Dublin, OH 43017-1090 ,iTv ol"--- Dub in Ph.ne: 614-410-4400,o Fax: 614-410-4490 kcit '0V Too, Members of Dublin City Council rom: Dana McDaniel, City Mana Date: February 9, 2017 fill milmoolmal '-- : Resolution No. 10-17 — Revl Ventures Agreement .. 111f�� : 4: Resolution No. 10-17 authorizes the City Manager to enter into an Agreement with Revl Ventures. This Agreement 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 State of Ohio's Third Frontier grant program is the primary funding mechanism to support this effort. Revl is designated as the lead agency in the Central Ohio Region responsible for the administration of the grant program. This program is funded by a combination of the State of Ohio and local (private and public) matching funds. City Council has budgeted $200,000 in the City's 2017 Operating Budget as its local match. The proposed agreement is consistent with previous Agreements approved by Dublin City Counc and provides for the continuation of services to include the following: i • 7 Staff recommends Council passage of Resolution No. 10-17. Please address any questions to Colleen Gilger, low PSA City of Dublin OHIO, USA PROFESSIONAL SERVICES AGREEMENT Rev1 Ventures Partner Program This Services Agreement ( "Agreement ") is made and entered into and effective on this day of 1' 2017 ( "Effective Date ") by and between the City of Dublin, Ohio ( "Dublin "), an Ohio Municipal Corporation, with offices located at located at 5200 Emerald Parkway, Dublin, Ohio 43017 and Rev1 Ventures ( "Service Provider "), with an office and principal place of business located at 1275 Kinnear Road, Columbus, Ohio 43212. Recitals WHEREAS, Dublin desires to engage Service Provider to perform the services as more fully described in the attached Exhibit A (the "Services "); and WHEREAS, Service Provider desires to perform the Services and desires to be so engaged. NOW, THEREFORE, in consideration of the foregoing and of the covenants and agreements herein contained, the parties, intending to be legally bound, agree as follows: Provisions I, Performance of the Services, Service Provider shall: A. Perform the Services as set forth in Exhibit A. B. Complete, sign and return the Ohio Public Employees Retirement System C'OPERS') Independent Contractor Acknowledgement form. C. Give prompt notice to Dublin should the Service Provider observe or otherwise become aware of any fault or deficit in the project or any nonconformance with the Agreement. D. Remit to Dublin after the termination of this Agreement, all files and documents pertaining to the project that have been obtained or produced including, but not limited to, permits, licenses, applications, codes, drawings, site plans, photographs and similar materials. Service Provider shall be entitled to retain copies for the Service Provider's files. PUBLIC WORKS 6555 Shier Rings Rd Dublin, Ohio 43016 phone 614.410.4600 fax 614.761.6506 dublinohiousa.gov 0127206.0607934 48497758- 4192v1 Iis Obfigati'ons of Dubfin, Dublin shall: A. Assist the Service Provider by placing at its disposal all available information pertinent to the Services for the project. B. Use its best efforts to secure release of other data applicable to the project held by others. C. Make all necessary provisions to enter upon public and private property as required to perform the Services. D. Give prompt notice to the Service Provider should Dublin observe or otherwise become aware of any fault or deficit in the project or any nonconformance with the Agreement. A. Service Provider shall be compensated in an amount not to exceed Two Hundred Thousand Dollars ($200,000). 0127206.0607934 4849-7758-4192v] 2 include information describing the percentage • each phase of the work whic has been completed, and a summary of billings and payments made to date.i A 1- VII. Insurance,, A. The Service Provider shall secure and maintain, at his/her/its own expense, errors and omissions insurance in an amount not less than One Million Dollars ($1,,000,000.00) per claim/annual aggregate to protect himself from any claim 0127206.0607934 4849-77.58-4192vi 3 arising out of the performance of professional services and caused by negligent acts, omissions or negligent acts for which the Service Provider may be legally negligent. The Service Provider shall maintain said coverage for the entire contract period and for a minimum of one year after completion of the work under the contract, C. The Service Provider shall secure and maintain, at his/her own expense, General Liability insurance in an amount not less than One Million Dollars ($1,000,000.00) per occurrence. D. The Service Provider shall secure and maintain, at his/her/its own expense, Property insurance for protection from claims or damages because of damage to or destruction of property including loss of use resulting therefrom in an amount not less than Five Hundred Thousand Dollars ($500,000.00). E. Dublin shall be held harmless for any damage to the Service Provider's property and/or equipment during the course of performance under the Contract. A. Service Provider guarantees that the individuals employed by the Servic working on this project are authorized to work in the United States. Th Service Provider will upon demand provide Dublin with appropriat 11 documentation (Form 1-9) for any Service Provider employee performin9 services for Dublin. 0 2720. 607934 849 -77: 8 -41922 4 B. The Service Provider agrees to indemnify Dublin in accordance with Section VI of the Agreement for any issue arising out of the Service Provider's hiring (Yr retention of any individual who is not authorized to work in the United States. D. The Service Provider shall receive Internal Revenue Service for 1099 from Dublin for income tax reporting purposes. X16 Assignment, Neither party may assign this Agreement without obtaining express-, written consent from the other party prior to assignment. No discrimination for reason of race, color, national origin, religion, sex, genetic information, pregnancy,, age,, ancestry, military status, sexual orientation, gender identity, marital status, veteran's status, or disability shall be permitted or authorized by Dublin and/or Service Provider in connection with the Services. Nothing in this Agreement shall require the commission of any act contrary to any law or any rules or regulations of any union, guild, or similar body having jurisdiction over the Services of Service Provider. 0127206,0607934 4849-7758-4192vl XVx Paragraph Headi*ngs. Paragraph headings are inserted in this Agreement for convenience only and are not to be used in interpreting this Agreement. [signatures appear on following page'l 0127206.0607934 4849-7758-41920 6 NA A IN WITNESS WHEREOF, the parties have executed this Agreement as of the day of 2017. BY -0 Date Colleen Git Director of Economic Development Date Donna Goss Director of Development Date Dana McDaniel, City Manager REV1 VENTURES BY: Date ITS Jennifer D. Readler, Law -1-1.. D , i - rectol 0 127206.060793 )4 4849-'7758-4192vl 7 1 1 U04 I hereby certify that the funds required to meet the City's obligation, payment, or expenditure under this Agreement have been lawfully appropriated or authorized for such purpose and 2re free from any obligation now outstanding Angel L. Mumma / Director of Finance X112720 x.0607 34 4849-7758-41922 l E."X"OHIBIT A Scope of Services Servi"ces. Revl Ventures, as the manager of the Central Ohio Third Frontier Network program will, in a partnership with the City, provide the following services: a. Physl'cal Presence. Revl Ventures will establish a physical presence in the Dublin Entrepreneurial Center ("DEC") and provide a designated lead contact from the Revl Ventures team who is responsible for coordinating Revl Ventures services within the Dublin community. Revl Ventures will be responsible for the cost of its own office(s) ani all related expenses in the DEC. b. Desi"gnated Lead's responsiffifolitt"es. The designated lead will have responsibility for the following: i. Provide Entrepreneurial development and outreach in Dublin and the counties of Delaware, Morrow, Marion, Logan and Union and will serve as Revl Ventures' 11gateway" to the Northern and Western Central Ohio region. Identify prospective entrepreneurial start-up companies best suited for program and capital assistance with the assistance of the Rev1 Ventures team Coordinate and communicate with both City Economic Development staff and its associated consulting team regarding Dublin-focused programming. iv. 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. Provide the City a Qual-terly Activity Report summarizing the type and amount of activity in Dublin, where the fourth quarter report also reflects a year-end summa The format and specifics of the content to be included in the report will be mutuall agreed upon between the City and Revl Ventures. I 0127-9).06.0607934 4849-7758-4192vl 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 Genorne Project. Revl will provide access its industry-leading network to support our regions' high-growth startups in these four critical areas: In addition, Revl Ventures will also work to recruit Dublin companies and individuals to provide services as part of the First Connect Network. 9. 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 marke,; entry and to validate early tech ideas based on intellectual property (IP), validate IP,, 0127206.0607934 4849-7758-4192vI 10 build prototypes, complete marketing studies, etc., for the most promisin opportunities. I Catalyst Fund: Seed stage convertible debt funding for the most promising I opportunities. With each investment, RevI Ventures will assist the company to reach th goals of growth and follow-on, institutional or angel funding. I Ohio Tech Angel Funds,,, local angel funds managed by Revl Ventures which mak 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 the company. v. Revl Ventures and SBDC expertise and access to SBA loan opportunities for small businesses. Acknowledgement, RevI Ventures agrees to acknowledge the City in its sponsorship opportunities, website and other opportunities as a Third Frontier Partner. Central Ohio Third Frontier contribution, The City agrees to pay to RevI Ventures $200,000 in matching funds in 2017. 0127206.06079334 4849-7758-41920 11 r rev ventures forCOLUMM)S DUBLIN PARTNERSHIP REPORT REVI VENTURES - Q4 2016 �IVA=1e&TIl41A Rev1 is a seed -stage venture development organization that combines investment capital and strategic services to help entrepreneurs build products people want and companies that succeed. Our seasoned, data - driven team delivers early market validation for startups, helping them lay the foundation for scalable growth with the skills to evolve their product, sell to customers, and build the right team. Rev1 manages a continuum of investment support from corporate, community, and innovation partners, as well as the Ohio Third Frontier. Rev1 was named the Most Active VC in Ohio in 2016 by CB Insights. BUSINESS METRICS 41° Quarter (October 1, 2016 - December 31, 2016) 3 0 LL m v D Y Y U Q Y v E v m 0 0 Qualified Leads First Meetings Companies Engaged Positioned for Funding Rev1 Ventures Investment Total External Investors Angel Corporate /Private Founder Capital Friends /Family OTAF Member Venture Capital State Sources Total TOTAL INVESTMENT 43 21 6 18 $2,813,569 $2,435,582 $1,447,941 Id:Z•Zc717_1u1.1 Rev1's Startup Program helps entrepreneurs and corporate innovation teams identify, build and scale disruptive products that are redefining industries. Leveraging Rev1's seasoned, data - driven team, the program delivers a strong foundation for innovators, with the skills to validate their product, build a viable business, sell to customers, hire the right team, and access growth capital. Companies that take advantage of the breadth of the program have a stronger foundation for growth, power through milestones more efficiently and are more capital efficient. First Connect services delivered in Q4: Experts: Delivered $223,274 in expert services (legal, accounting, development, marketing, etc.) provided by the central Ohio community. Advisors: More than 95 hours of time delivered from national experts. Customer Acquisition: 11 qualified opportunities accessed for the portfolio and $240,000 in revenue closed. Talent: Promoted 51 job openings. In Q4, Rev1 launched two pilot Customer Acquisition projects that matched an outside consulting firm with two of our portfolio companies. The results from these pilots will help us in our goal to create highly scalable customer acquisition services that accelerate our clients' business model validation and market entry by providing qualified opportunities on a national level. Both firms provided a discount to our clients, and Rev1 shared 50% of the remaining cost. $617,121 Sapper Consulting + T -Pro Solutions: Sapper $119,985 Consulting provides qualified 1st meeting $444,242 scheduling via email campaigns. They worked with T -Pro for two months. T -Pro found the $7,998,227 engagement to be very educational but will not $1,200,000 continue with Sapper as they have an internal $14,263,098 employee who is tasked with this activity. • Evolve Growth + Ambassador Software $17,076,667 Works: Evolve Growth provides sales strategy consulting, management, and inside sales. The goal with this engagement was to set qualified 1st meetings for Ambassador Software Works. They worked with Ambassador for two months and Ambassador will continue the service for a minimum of three months going forward. rev ventures for COLUMBUS We will continue to offer engagements with both consulting firms to our portfolio companies to further prove out the program, sharing the discounted cost. MOMENTUM Portfolio Buzz Trendshift Acquires Health Data Intelligence - Yahoo Finance & Venture Beat Assurex: Gene Rush: Investors of All Types Spot Opportunity in Genomics - CB Insights Fast 50 Rankings Revealed (Updox) - Columbus Business First Prevedere Makes List of Enterprise Startups that Will Boom in 2017 - Business Insider Could a Single Mistake Cost 35% of Your Holiday Customers? (Refill) - Forbes Columbus e- Commerce Software Maker Raises Nearly $2M (nChannel) - Columbus Business First Clarivoy's Proprietary TV Analytics Solution Wins DrivingSales 2016 Innovation Cup - EIN News Digital Ticketing, Virtual Reality Sensors Land Job Creation Loans from the Ohio Third Frontier (Ticket Fire) - Columbus Business First 1 -Hour Alcohol Delivery Service Rebrands as Refill, Starts Courting Bars and Restaurants - Columbus Business First Columbus Chamber cbuzz: Dan Fronczak of Healthy Roster - Metropreneur Jifiti - Columbus CEO Rev1 Buzz Here's Why Rev1's Startup Incubator is Hosting a $1.513 Company - Columbus Business First The Great Midwestern Tech Startup Surge - Entrepreneur Rev1 Ventures Reloaded With Money From Ohio Third Frontier, Civic, and Corporate Backers - Columbus Business First Local Tech Efforts Receive Millions in Funding - The Columbus Dispatch 6 Sales Myths Debunked - American Express Paul Singh's Tech Tour Visits Columbus - Columbus Business First Rev1 Ventures Launches Entrepreneur Giving Fund to Cultivate Culture of Giving Back - PR Web A VC Puts on His Equity Crowdfunding Hat - Young Upstarts lou Dublin 2016 Quarter 4 Impacts GENERAL DEAL FLOW JANUARY 1, 2016 - DECEMBER 31, 2016 DEAL FLOW Investment by Dublin in Rev1 INQUIRIES BY INDUSTRY QUALIFIED LEADS 10 IT 6 FIRST MEETINGS 8 OTHER 5 CLIENTS 2 $2,144,044 POSITIONED FOR FUNDING 2 $1,299,998 EXPERT SERVICES AMOUNT INVOICED Concept Academy ACCOUNTING Other Grant or Debt $15,136 Dublin Rev1 LEGAL Total $8,989 Start -Ups Completed 6 127 MARKETING Dublin Companies Performance $465 Became Rev1 Client 16.7% 20.5% HR /RECRUITING Revenue Generated $16,250 Raised by Grads - $530,000 TOTAL Jobs $40,840 INVESTMENT ACTIVITY INVESTMENTS RETURN ON INVESTMENT January 1, 2016 - December 31, 2016 Investments Made Over All Time Rev1 Investment Total Externallnvestors Angel - Group Angel - Individual Corporate OTAF Member Venture Capital Total External TOTAL INVESTMENT Investment by Dublin in Rev1 $1,000,000 Total $2,000,000 Investments in Dublin Companies $650,000 Rev1 Ventures $2,144,044 $380,009 OTAF $1,299,998 $75,000 Other Investments $50,913,211 $50,000 Other Grant or Debt $5,514,355 $150,000 Total $59,871,608 $1,305,009 Dublin Companies Performance $2,305,009 Revenue Generated $46,588,752 Jobs 124 TOTAL INVESTMENT + REVENUE $106,460,360 TOTALLEVERAGE 53:1 INVESTMENT CAPITAL LEVERAGE 30:1 lou Dublin 2016 Quarter 4 Impacts 0 COMPANY AND PROGRAM UPDATES X.311 :1_ 1. V L I J U BY-174 r d ;9 Brand Thunder interactive themes are available for some of the most recognizable brands in the world. With Brand Thunder, you can engage your audience every time they browse the web. In Q4 the company leveraged a strategic partnership with VisiCom to expand its business. Brand Thunder can now sell directly to companies, in addition to connecting with clients online for branding their webpages. CropZIIIa provides farm management and productivity software that helps farmers create a master plan for their fields, making the farm more profitable. In Q4 the company: Moved into the DEC in Dublin. Raised $BOOK in seed funding from a group of individuals and corporate partners. The funds will be used to expand CropZilla's sales and marketing efforts following the successful roll -out of their farm operations /decision support software package during 2016. Healthy Roster's product, Virtual Athletic Trainer, is an app and injury communications platform designed to give parents peace of mind when their child first suffers a sports injury and afterward. In Q4 the company received an investment from Cincinnati -based Queen City Angels. The company plans to use the investment to scale its sales efforts and to continue product development. Innovator Health is a telehealth solution connecting major hospital hubs to smaller rural hospitals so that displaced patients can have better access to specialists and expert doctors. Rev1 engaged with IH in October 2016 and has since connected the founder, Darren Sommer, to advisor Wes Strickling through our First Connect Advisors program. Wes is taking on greater and greater roles with the company and is likely to join them full time. Innovator Health is also in the process of closing deals with several hospital systems around the U.S. Rev1 is hoping to position IH for investment in the next 30 -45 days. Updox provides a fully- integrated communications platform for independent physician practices, offering several features including: electronic communication, patient portal, document management, and EHR /EM integration. In Q4 the company announced the renewal of its full accreditation with the Direct Trusted Agent Accreditation Program (DTAAP) as a Health Information Service Provider /Registration Authority /Certificate Authority (HISP /RA/ CA) from DirectTrust.org and the Electronic Healthcare Network Accreditation Commission ( EHNAC). Accreditation by EHNAC certifies that an organization's direct secure messaging services meet HIPAA and HITECH requirements, industry standards, and Direct Project regulations. COMMUNITY ENGAGAMENT Rev1 provided speakers and content for entrepreneurial education, and 1 -1 coaching at the DEC's monthly networking events. Following are the topics of the sessions lead by Rev1: Event: Creating a Minimally Viable Product Date: October 20, 2016 Program: Customers are at the center of every successful product and high - growth company. Understanding what core features are needed to satisfy customers is the starting point. Rev1 Ventures' Matt Veryser led a hands -on session that helped entrepreneurs to: Map out their user experience; Determine core "features" to build into their first MVP: and Understand how to iterate on their product, leveraging market feedback. lou Dublin 2016 Quarter 4 Impacts 0 Speaker: Matt Veryser is Director, Venture Acceleration at Rev1 Ventures. Matt works with the earliest stage startups to help them validate (or disprove) market assumptions. He helps clients save time and money by getting the right solution in front of the right customers. He comes from a family of entrepreneurs —his dad, uncle, and both grandfathers — and has a BS in Finance from the University of Dayton. Event: Healthy Roster Building a Startup by Building Sales Date: November 17, 2016 Program: Interactive Q &A with Nathan Heerdt, serial entrepreneur and co- founder of Health Roster. Healthy Roster is a growing Columbus startup that connects parents of kids who are injured in youth sports quickly and easily with certified athletic trainers from local hospitals they know and trust. Tips and Takeaways: How to narrow the focus to the markets most likely to yield first customers. How Health Roster founders figured out what it takes to sell their solution (who to call on, what to say, how long it takes from first contact to close) by rolling up their sleeves and doing it themselves. The "smarts" of developing a sales approach based on benefits, not features: "We give parents peace of mind and healthcare providers a direct line to new patients." How to improve the efficiency of the startup's sales cycle and scale it up. Speaker: Nathan Heerdt, Healthy Roster co- founder and CEO, and his co- founders Shawn Price, CTO, and Dan Fronczak, president, were part of the turn - around team at Digital Scout. In just three years, the team sold the company for a 5X multiple. Together this team knows how to build and scale an app company in the youth sports space. Charles Hill, Rev1 director of community outreach, leads Rev1's efforts to leverage the region's willingness to support entrepreneurs through cohesive partnerships. He also engages to expand inclusive entrepreneurship across our region. Event: Inclusive Entrepreneurship CBUS Style Date: December 15, 2016 Program: Companies with more diverse leaders and teams are more successful and create better solutions to problems. The program provided insights for those thinking about diversifying their company and /or looking to connect with local resources. Speakers: Charles Hill, Director of Community Outreach, moderator: In his role with Rev1, Charles i� focused on connecting the diverse organizations in the region to support startups. <BLK Hack >, whose mission it is to fill the deficit of black minorities in the technical field. i.c.stars I *Columbus, a powerhouse that gives bright, committed young adults who face bleak futures, the opportunity to develop advanced IT skills. Bunker Labs - Columbus, the first expansion location of this national network of entrepreneurs founded by military veterans to help other veterans start and grow busineses. lou Dublin 2016 Quarter 4 Impacts DEAL FLOW TERMS DEAL FLOW: all new business ventures that are submitted to Rev1 Ventures. QUALIFIED LEADS: opportunities that come through deal flow that align with our commitment to serve companies that are within our region, scalable, and tech enabled. FIRST MEETINGS: the initial meeting held with entrepreneurs for Rev1 Ventures to 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. COMPANIES ENGAGED: startup ventures with a signed engagement letter 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 entities 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.