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General | Investment Criteria | Investment Process
What is AVF's geographic focus?
AVF's primary geographic focus is The Adirondack North Country Region of northern New York and southern Quebec. Our secondary focus is the upstate region of New York bordered roughly by the Champlain Valley of Vermont and Massachusetts to the East, Albany and the I-90 corridor to the South and Lake Ontario to the West. Although these are our principle investment areas we maintain the flexibility to invest in opportunities elsewhere.
What is AVF's definition of Responsible Investing?
AVF invests in business ventures that are environmentally and socially compatible with the Adirondack region. High quality sustainable job growth, environmental and historic preservation and "clean" economic development are our foremost responsible investing criteria.
Does AVF specialize in particular industry sectors?
Yes. AVF is particularly interested in businesses likely to be a good "fit" in the geographic area and that will directly benefit from the unprecedented surge in Regional corporate and government investment and the economic development activity throughout the Quebec -New York Corridor and Tech Valley. These include biotechnology, advanced materials, renewable energy, telecommunications, nanotechnology, manufacturing, sustainable tourism, and natural resources. However, AVF will consider any company with a strong business model that meets AVF's investment criteria.
The Fund Principals anticipate that these businesses typically will be located or already doing business in the Region. However, the Fund will also seek to attract new businesses and entrepreneurs to the Region.
Who invests in AVF?
Pension funds, banks, corporations, foundations, insurance companies, state and federal government, other funds, and high net worth individuals. If you are interested in investing in AVF please email Paul Evans at pevans@adirondackventurefund.com . The Adirondack Venture Fund only accepts investment from accredited investors. The following link goes to the SEC definition of an accredited investor: http://www.sec.gov/about/forms/regd.pdf
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What is AVF's investment focus?
AVF invests in venture capital opportunities with potential for substantial investment return while helping to stimulate financial, social and environmental prosperity. Key to our decision making is the strength of Management and clarity of the business plan.
What stage of investment does AVF prefer?
AVF will invest in start-up to expansion stage companies. Typically, AVF participates in financing rounds that support rapid sales and employment growth. AVF will invest up to approximately $3,000,000 per round. Funds are injected on a staged basis against specific benchmarks of successful performance.
Does AVF co-invest with other financing entities?
Yes, these include other venture capital firms, angel investors or economic development funds. AVF's financing can assist the company to access additional debt financing.
Will AVF participate in follow-on investments in companies it has already invested in?
Yes, if the company is achieving its performance goals.
What financing instruments does AVF use?
AVF will use common, preferred and convertible stock, subordinated debt with warrants and or royalties and debentures.
Will AVF expect a board seat for its investment?
Yes, if AVF acquires a substantial stake in the portfolio company AVF requires one or more board seats and/or observer rights in all equity transactions.
Will AVF provide low-interest loans?
Possibly. On rare occasions AVF might provide low-interest secured loans to our portfolio companies. However, AVF primarily invests in companies seeking substantial long-term capital gains.
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Once I submit my business plan, how long will it be before I hear from AVF?
If the plan fits our investment criteria AVF staff will follow up within two weeks.
Due to the volume of business plans we receive we will not be able to return the plan to you.
What should be included in the business plan?
The business plan should include management biographies, description of product or service, sales and marketing plan, key customers, existing and anticipated financing sources, operations and employment plan, production site location(s), historical and projected financial statements, and sources and uses of new capital. The plan should include a one or two page executive summary and be a total of no more than 30 pages, with appendices for further information.
What is AVF's investment process?
AVF begins by reviewing a company's business plan and profile. If it is strong, AVF then has a conference call or visit with company management to get more familiar with the company. If that goes well and follow-up materials are sent promptly, AVF introduces the deal to its Investment Committee. If the Investment Committee is interested, AVF does thorough research into the company, including its founders, management, products or technology, the markets it is seeking to reach, competitors, and the overall business model. If everything goes well during this stage, the Investment Committee again looks at the opportunity, and either approves the investment or turns it down. Fund participation is subject to reaching agreement on investment terms and conditions. The process will take a minimum of three to six months, including several company visits and a lot of information gathering.
How will AVF be involved with my company after an investment has been made?
AVF will be hands on and active in helping your company grow, through formal means such as board participation, as well as informal means such as introductions to follow on financing opportunities and strategic partners; ongoing business plan refinement and execution; and involvement in key staff decisions.
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