Texas Women Ventures Fund

	Investment Criteria
		Ideal Candidates for the Texas Women Ventures Fund
		The 60 Second Test
		Evaluation

	Frequently Asked Questions
		What type of financing is offered?
		What is Dequity®?
		What is the minimum you invest?
		Do I have to own 50 percent or more of the company to qualify?
		Can I keep control of my company if I use your money?
		What type of transactions do you fund?
		What industries do you prefer?
		What information do you want to see after initial contact?
		Do you have women investors in the fund?
		How long is the evaluation process?

Investment Criteria

The Texas Women Ventures Fund is looking for opportunities to invest in women-led companies located in Texas or the Southwest in need of growth capital. We do not invest in start-ups or turnarounds but invest in high-growth companies in need of money and mentoring.

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Ideal Candidates for the Texas Women Ventures Fund

Take the 60-second test and see if you can answer YES to the following:

	A women-led company
	Solid management and financial controls in place
	Located in greater Dallas, Texas or the Southwest
	Profitable and with positive cash flow
	Growing - with revenues between $1 and $50 million
	Looking for advisory services, board candidates or mentoring
	In need of at least $500,000 in growth capital
	Company can support a loan product
	Able to amortize the loan within three to five years
	Willing to provide upside through a warrant or bonus feature, and
	Have a realistic 3-5 year exit strategy

In addition to the 60-second test, the Texas Women Ventures Fund will also look for...
... Companies with the following characteristics:

	In an industry where our investors can add value,
	Appealing product or service,
	Management with significant personal investment,
	Limited regulatory complications, and
	Future success of the company not reliant on undeveloped technology

... Company owners/leaders who:

	Understand the investing process,
	Desire a relationship with an outside investor, and
	Agree to a commitment to the Texas Women Ventures Fund

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	The Evaluation:
		If your company meets the initial screen, we evaluate whether we can add value to your company along with:
		How much money you need and how it will be used,
		Your business plan and financial model, and
		How your team can reach the growth plan

FREQUENTLY ASKED QUESTIONS

What type of financing is available?

Subordinated debt with warrants, or

Subordinated debt with bonus structure, or

Equity in limited situations

The typical manner of investment is through the fund's Dequity® product. This is a long-term loan that can range from one to five years in duration with a variety of repayment plans available. The Dequity® product offers an "interest-only" feature for the term of the loan. These loans can be subordinate to the company's primary lender, factoring company or bank.

What is Dequity©?

The TWVF offers lending services called Dequity®. This is debt that performs a lot like equity. Instead of investing equity and taking a large block of common or convertible preferred stock, the fund makes a long-term loan with either a warrant or bonus feature. This allows the current owners to remain in control of the business and preserves any applicable certifications as a women-owned firm. This loan also offers other features such as "interest-only" payments during the term of the loan, giving the company full use of the principal for the life of the loan.

What is the minimum you invest?

We prefer to invest with co-investors in your company, which gives us the ability to participate in subsequent rounds. Our minimum in the first round where we invest should be at least $500,000.

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Do I have to own 50 percent or more of the company to qualify?

NO - there is no requirement that women own 51 percent or more of the equity. We invest in women-led businesses, i.e. where a woman or women own a significant share of the company's equity and play an important role in day-to-day management.

Can I keep control of my company if I use your money?

YES - you keep control. The Dequity® product was developed with your needs in mind. You worked hard to gain control. Now is not the time to give control away. Also, you may be certified as a women-owned firm, or be eligible to be certified as such. We are smart enough to know the potential value of those certifications.

What type of transactions can you fund?

We can fund:

	Recapitalizations
	Strategic acquisitions
	Management buy-outs

We can fund growth opportunities that require capital for:
	Equipment purchases
	Long-term working capital needs
	Expansion of facilities
	Bonding for large contracts

What industries do you prefer?

We prefer companies that can support a loan product in

	Manufacturing
	Distribution/wholesale
	Process services
	Temporary services
	Healthcare

Do you have women investors in the fund?

YES. We have over forty dynamic women entrepreneurs and executives as investors in our fund. Their experience and networks are vast. Some started and built very large companies, some have gone through the experience of selling their company or taking it public, some run large divisions of well-known public companies and some are professionals in the fields of accounting, mergers and acquisitions, and law - corporate, securities and labor law. Together they bring a wealth of talent, networks and experience to the fund and, in turn, to our portfolio companies.

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What information do you want to see after the initial contact?

Assuming your company meets the 60-second test, you should be prepared to send a brief but compelling 2-4 page investment summary to the fund manager. Please do not send a full business plan unless requested. Unsolicited business plans sent via fax will not be considered for review.

This investment summary should contain at a minimum:

Concept overview to include brief comments regarding:

	Description of product/service,
	Industry Background,
	Competitive position within the industry,
	Bios of your management team, board and key advisors, and
	A financial snapshot of your historical and projected financials

How much money you want and the type of money you need

Plans to use the money and what it will do for your company

The return the investor can expect, and

Convincing evidence that this is the right deal at the right time for the investor - i.e. why invest at this time in you, your management team and your product or service.

For more detail, see How to Request Capital from the Professional Investor on the Resources page.

How long is the process after the initial contact?

We will use our best efforts to get a preliminary response to you within two weeks. If in the opinion of the fund, your company meets the investment criteria and the fund is in the investment mode, we may proceed to the next review phase. We do not make quick decisions and are not well suited to solve crisis cash flow needs. You should expect in-depth due diligence to be conducted over several months. This process is designed to help develop a strong relationship between your company and members of the fund that can add value to your company's development.