Entrepreneur FAQ

What types of companies does Element 8 fund?

Element 8 is focused exclusively on early-stage cleantech companies whose innovations will increase the sustainability and health of our planet. Please refer to What We Fund for more detail and browse our Portfolio page for examples.

How many deals get presented to the members over a year?

Our Screening Committee currently approves approximately 25 new companies each year to present.

How many companies has Element 8 worked with?

Historically, we have funded about one out of every four deals that made it through our screening process. Since our founding in 2006 through the end of 2015, Element 8 members have invested in 63 companies.

How much capital are presenting companies typically raising?

$250,000 to $1 million is typical. Occasionally we will consider larger investment requests.

It is unlikely that Element 8 members themselves will collectively invest more than $500,000 in any one financing round, but we regularly syndicate deals needing up to a total of $1 million with other local or national angel groups.

What is the typical range of individual investments?

Individually, Element 8 members typically invest $25,000 to $100,000 per deal.  Some occasionally contribute more.

How do I apply to present?

Please access Apply For Funding for details on our simple 4-step process.

How long does it take from when I apply until I can present?

Completed, paid applications are due 45 days before the meeting at which you hope to present. If your application passes screening, you will be notified about 2-3 weeks before the presentation date.

Where and when are your presentation meetings held?

Element 8’s monthly member meetings alternate between locations in Seattle and the Eastside.  The latter are currently held in downtown Bellevue, WA.  Presentations are usually given mid-day, and lunch is provided.

Upcoming meeting schedules and locations are found at Meeting & Events.

What is the presentation like?

Typically, 50 to 60 of our members, their guests (who are also Accredited Investors), sponsors, and staff attend.

Presenting companies give a presentation from a podium on the stage of a conference room with a state-of-the-art audio-visual system. A PowerPoint presentation is required and product or prototype demonstrations are very effective. Successful applicants are given 10 minutes to tell their story followed by a separate Q&A session. This process is more fully described under Funding Process .

How do Element 8 members make investment decisions?

To make the best use of entrepreneurs’ valuable time, Element 8 members screen deals, hear presentations, perform due diligence and negotiate terms as a group.  However, we make investment decisions as individuals; our money is not pooled into a fund.

If selected, after your presentation, you will be given the email addresses of the Element 8 members who wish to delve deeper into your opportunity. Interested members form informal due diligence (DD) groups and share the work involved. Normally, one member takes the lead and is the principal point of contact with the company.

During DD, the company will be asked for a considerable amount of detailed information and documentation. DD groups often ask to meet with company representatives a number of times. The process varies considerably depending on the entrepreneurs and members involved, the nature of your business, and the complexity of the deal. The funding process may take weeks or months. If you have a well-thought-out business plan with milestones and have documented, in advance, the elements listed in Selection Criteria, you will generally get through DD relatively quickly.

How Do I Keep Members Updated on Our Progress?

Members who invest in your company will expect quarterly updates over email

Companies are also given occasional opportunities to update the broader membership, which may lead to additional investments.  This is done, by invitation, during a brief section at one of our 8 or 9 regular monthly meetings or at one of our social gatherings and portfolio showcases which are held throughout the year.

It benefits companies to regularly update their profile on Gust™, the online tool used by Element 8 to track deal flow and portfolio companies.

Who runs Element 8?

Element 8 is run by a volunteer Board of Directors and a paid part-time Executive Director.

If I present to Element 8, how can I be assured that all investors are accredited?

Element 8 recognizes that our presenting entrepreneurs and their legal counsel must take ‘reasonable steps to verify’ that all investors are accredited, so as not to run afoul of the SEC requirements for generally solicited offerings.

ACA EAG seal

Element 8 has voluntarily taken the steps become an “Established Angel Group” (EAG) under the umbrella of the Angel Capital Association, of which it is a member in good standing, to give you this assurance. Element 8 meets the six requirements for certification:

      1. Element 8 is a private group formed to invest in early-stage companies.
      2. All group members are accredited through self-certification and understand the risks associated with this investment class.
      3. Element 8 has a code of conduct.
      4. Element 8 has an established deal and investment process.
      5. Element 8 has a process for members to to periodically affirm their accredited status.
      6. Element 8 has a strong vetting process for members.

More details and assurance that Element 8 is on the list of currently valid Established Angel groups can be found at the EAG page of the Angel Capital Association website.

 


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May 25, 2017

May Member Meeting

11:45 am - 2:30 pm
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June 06, 2017

Summer Showcase
Seattle
4:45 pm - 7:00 pm
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