Investment Process

Our funding process generally takes between 8-12 weeks and includes the following steps:

 

application

  • Please start by reviewing our Investment Criteria.
  • If you meet our criteria, complete and submit an online application through Gust.com.
  • We reserve the right to pass on an application for any reason and at our sole discretion.

 

Initial Review

  • Your application materials will be reviewed by our Screening Committee typically within 2-4 weeks.
  • If a positive consensus is reached, a member will contact you to ask additional questions about your company.
  • Those companies that fit the overall investment interests and goals of our members will be invited to pitch at one of our monthly Screening Meetings in Pittsburgh.

 

Screening Meeting

  • If you are selected to pitch at the Screening Meeting, you will be given 15 minutes to present your business opportunity and 15 minutes for Q&A.
  • The Screening Committee will vote following your presentation and may recommend that you present to the general Member Meetings in Pittsburgh.

 

Member Meeting

  • If you are selected to pitch at the Member Meeting, you will be given 15 minutes to present your business opportunity and 15 minutes for Q&A.
  • Following your presentation, the investors will have a private discussion and may decide to proceed to due diligence.

 

Due Diligence

  • Prior to committing to any investments, Next Act Fund performs a detailed due diligence process lead by our Due Diligence Committee.
  • Our process, based on NVCA best practices includes several phases including:
    • Review of all pertinent documents including financial statements, tax returns, articles of incorporation, customer contracts, cap tables and supplier contracts.
    • Meetings with the management team to ask questions and discuss the company documents.
    • Contacting references including customers, suppliers and former employers.
  • Our findings will be summarized in a due diligence report provided to each of our members and, upon reviewing the report, members will vote whether Next Act Fund will proceed.

 

Term Sheets and Closing

  • If enough investors vote to proceed following the due diligence phase, we will proceed to term sheet negotiation.
  • If a mutually agreeable term sheet is negotiated, we will then proceed to deal closing.

 

Post-Investment Participation

  • The members of the Next Act Fund have strong ties to local business and professional communities. Their experience, relationships and guidance can significantly contribute to an emerging company’s success. Typically, members of Next Act Fund serve on Advisory Boards or Boards of Directors of companies that are funded. This member participation facilitates the strategic and financial planning and efficient plan execution required in the initial growth phases of new business ventures.
  • Next Act Fund also provides added value through:
    • Relationships with venture capital firms and other angel groups that can lead to co-investment and/or later-stage investments in an enterprise.
    • Interim executive management and consulting when requested.
    • Advice or assistance with sales and marketing, recruiting and building strategic relationships.
    • Access to cost-effective business facilities and support services.