OTAF has invested $29M in 50+ Companies.
Ohio TechAngel Funds (OTAF) is a group of for-profit investor funds, managed by Rev1 Ventures, that invests in highly promising, Ohio-based C corporations in IT, advanced materials, and life sciences. More than 300 high net worth, accredited investors have joined one or more of the funds, making OTAF one of the largest in the United States. The Ohio Third Frontier Program provides additional funding.
OTAF is currently accepting funding submissions for its OTAF IV fund. OTAF IV invests $325,000 in participating preferred stock and makes follow-on investments in the best-performing ventures.
OTAF members can make sidecar investments in amounts ranging from $10,000 to $100,000 per venture. OTAF participates in syndications of $500,000 to more than $2MM by co-investing with other leading angel investors and angel funds, regional venture capital funds, and family offices.
Since 2004, Ohio TechAngels’ four funds have invested more than $14 million in 50+ Ohio-based technology startups. The goal of the funds is to build wealth in Ohio by helping build great companies that can rapidly scale and attract the interest of strategic acquirers within three-to-five years. OTAF members have also made more than $15 million in sidecar investments in those same companies.
Ohio TechAngel Funds invests in high potential IT, software, bioscience, medical device, and advanced materials startups that meet certain criteria:
- Ohio-based C corporation legal entity, incorporated in Delaware or Ohio
- A unique technology, product, or solution with the potential to become a high-margin, market leader
- Scalable and fundable business model
- Working product in the market (for IT companies)
- Solid management team with specific industry expertise
- Well-designed and expressed capital access plan and liquidity event
- Three-to-seven year exit strategy
- Willingness to sell participating preferred stock on OTAF standard terms
Ohio TechAngel Funds considers investment opportunities on a real-time basis. For companies located in the 15-county Columbus Region, OTAF works closely with Rev1 Ventures to identify and select qualified deal flow. Companies in the Columbus region can submit an inquiry form on the Rev1 Ventures website, and a Rev1 advisor will respond.
- If OTAF Management is interested in the opportunity, the company will be invited to present to the full OTAF IV membership at a member meeting.
- At the member meeting, OTAF members will vote to proceed (or not) with formal due diligence.
- The due diligence team evaluates the risk and attributes of the company and business plan.
- If the due diligence team finds that the investment opportunity is appropriate for the fund, the company will present a final time to the full OTAF IV membership. The due diligence team will also make an investment recommendation presentation to the membership.
- The membership makes a final vote on funding. If the vote is positive, OTAF will solicit sidecar interest from members, help syndicate and fill out the round, and expeditiously move toward a close.
OTAF also participates in, but typically does not lead, funding rounds for companies outside of the Columbus region.
- If the local ESP or angel group chooses to be the lead sponsor on the deal, the leader of the ESP or angel group can contact OTAF’s managers directly to discuss syndication.
- If the local ESP or angel group has turned the deal down, the company can submit an inquiry form on the Rev1 Ventures website and a Rev1 staff member will respond.