Investments FAQ

Rev1 Venture’s services, connections, and funding have achieved scale, presenting startups in Central Ohio with a continuum of capital that is changing the region’s status quo for building new companies.

We strive for openness and transparency in sharing our investment process. To that end, here’s a list of frequently asked questions. Because each company’s situation and needs are different, these FAQs are guidelines and general rules of thumb.

How much is Rev1 willing to spend per company on actual dollar investments?

Concept stage investments are up to $100,000, with the expectation that co-investment will come from one or more additional sources. While it doesn’t have to be a one-to-one match, we want to see that others are willing to commit funds to the business alongside Rev1 on the same terms. Seed stage investments are up to $500,000 for the initial round. We expect at least a one-to-one co-investment from other investors on the same terms.

How much control does Rev1 allow founders to maintain, thus ensuring that their vision is intact while generating full dollar amount return for investors?

Our investments are structured on terms and conditions based on National Venture Capital Association standards. Rev1 is not a control investor, meaning our investment in the company will result in a minority ownership position. However, we expect portfolio companies to engage best practices for corporate and board structures and governance, management responsibility, accountability, and monthly operational and financial reporting.

How long does it usually take to receive investment dollars from Rev1 once a company satisfies all the requirements?

The due diligence process could take from three to nine or more months, depending on the progress already made by the company and data available in these five areas:

  • Product and technology
  • Customers and market
  • Business model (how the company makes money)
  • Team and its ability to execute the chosen business model
  • Financing requirements and risk exist for the company based on the other four areas

It helps to think about investment due diligence as conversations between the entrepreneur and founding team and an investor. Sometimes investments are made to fill in gaps or answer specific questions about the technology, customers, or markets. Other times the funding is to accelerate product development and market entry.

What are the requirements for investments?

The company must be located in Central Ohio and at the Concept, Seed or Seed+ stage. The founders and management team agree to use best practices in running and growing the company. We must be able to agree on investment terms that—if the company is successful—will generate market returns for Rev1’s investment. We do not provide grants, subsidies, or below market financings.

What kind of technology does Rev1 look for?

Rev1 is chartered to work with companies that are developing products in five areas: Information Technology; Life Science, including biotechnology, devices, diagnostics, therapeutics, and healthcare IT; Advanced Materials and Manufacturing; Energy and Environmental Technology, and Food and Agriculture Technology.

What are the qualifications for the Technology Concept Fund? Is there a specific schedule for applications or investments?

The Technology Concept Fund was created specifically for opportunities based on technologies developed at The Ohio State University. There is not an application schedule or specific cycle for that fund. Concept investments are made out of Rev1 Holdings and are based on company needs to achieve specific milestones of technology, product, customer, market, and business model development and validation.

What are the qualifications for the Catalyst Fund? Is there a specific schedule for applications or investments?

Qualifications are as stated in A3 and A4 above. There are neither due dates nor calendar cycles for these funds. Applications and investments are based on companies’ active engagement with Rev1 and completing due diligence.

What are the investment qualifications for Ohio Tech Angels IV (OTAF)? Is there a specific schedule for applications or investments?

OTAF has its own processes, although OTAF is managed by Rev1 and leverages the same due diligence program as other Rev1-managed funds. OTAF investment screening is managed by Parker MacDonell and Michael Kindrat-Pratt. All investment decisions are managed and approved by OTAF members.

What are the investment qualifications for X-Squared Angels? Is there a specific schedule for applications or investments?

X Squared Angels focuses on companies with women founders or C-level executives having significant (i.e. greater than 20 percent) ownership in the company. For qualifying companies, Rev1 Ventures will make an appropriate introduction.

Rev1’s investment model is based on direct, collaborative, and active engagement between the entrepreneur and our team to ensure we are aligned on business philosophy and fundamentals, short- and long-term objectives, and open, transparent communication.

We engage with entrepreneurs who demonstrate high integrity and who are willing to work collaboratively and embrace best practices in growing their ventures.

Visit our Entrepreneurs page for more information about the Rev1 program.