SCP Capital Cycles
Strategic Capital Partners plans to deliver FOUR Capital Cycles for 2017
Planned 2017 Capital Cycles
Capital Cycle 1: February 10, 2017 application deadline at 5:00 pm
March 2, 2017 – Pitch Day
March 23, 2017 – Angel Event
Capital Cycle 2: April 14, 2017 application deadline at 5:00 pm
May 4, 2017 – Pitch Day
May 18, 2017 – Angel Event
Capital Cycle 3: August 18, 2017 application deadline at 5:00 pm
September 7, 2017 – Pitch Day
September 28, 2017 – Angel Event
Capital Cycle 4: October 6, 2017 application deadline at 5:00 pm
October 26, 2017 – Pitch Day
November 16, 2017 – Angel Event
Please Note: All pitches must be delivered in person in Frederick, MD or at location as designated by SCP. Our application fee is $250. Please see the “Benefits to the Entrepreneur” for a description of benefits for this fee. Following the Screening Event, the entrepreneurs selected for our Angel Event will be invited for a studio video session so their pitch can be posted on the SCP website.
The Capital Cycle
SCP evaluates and screens companies in an iterative process called a Capital Cycle. Each Capital Cycle lasts approximately 5 to 6 weeks, beginning with application, a pitch review round of company pitches to MAA member angel investors, and progressing to potential investment at the Angel Event. SCP will host four Capital Cycles for 2017.
The following is a typical progression of an SCP Capital Cycle:
- Application – This is a very valuable part of our Capital Cycle. Go to “Register” or “Contact Us” to request an Application. Your application may be submitted online or hand carried or snail mailed. We accept up to 25 companies for each Capital Cycle. We stop accepting applications for each Capital Cycle once we reach 25 companies, or the application deadline (posted on the website), whichever comes first. So don’t wait until the last day to apply! If this is your first time applying to SCP, you need to pay the $250 application fee with submission of your application in order to be eligible to pitch. If you have paid and we find that you don’t meet the selection criteria, please note that the application fee is non-refundable. After the application deadline closes, your business plan will be evaluated and scored against the SCP 20-criteria scoring matrix to determine viability for presentation to MAA investors. You will be given a copy of the evaluation. SCP will notify you as to whether you made it to Pitch Day or not, as well as provide you with an agenda of when you are scheduled to pitch.
- SCP Pitch Day Screening Event – You will be notified as to the location for Pitch Day. You must pay a $500 fee to pitch at Pitch Day. The fee must be received 48 hours prior to the event. This is the first round where up to 10 selected companies offer their first pitch to SCP partners and MAA members in a 6-minute pitch + 3-minute Q&A format. You will need to email SCP your pitch deck (either PDF or PowerPoint) no later than the day before the event. Your executive summary must be submitted on our template in Word format 7 days prior to Pitch Day. This event goes from 5:00 pm to 9:00 pm. From 5:00 pm to 6:00 pm is a catered social hour/demo mixer where we encourage you to meet with investors. At 6:00 pm, we begin the pitches, bringing in the companies one by one to give a 6-minute pitch + 6-minute Q&A. Investors debrief for 3 minutes, and then we bring in the next company until all 10 companies have pitched. After you have finished your pitch, you are welcome to leave. SCP partners and MAA investors have until the following Monday at noon to cast their votes for the top five companies that move to the Angel Event. Monday evening SCP will let you know whether you are progressing to the final round or not, and provide you with our notes and investor feedback. At least four but no more than five companies reach the Angel Event.
- SCP Angel Event – Approximately, 2 to 3 weeks after the Pitch Day Screening Event, the top companies pitch at the Angel Event. You must pay a $1,000 fee to pitch. The fee must be received no less than 48 hours prior to the event. This is a more formal event (business casual required), and is held at Dutch’s Daughter in Frederick, MD. This event typically goes from 5:30 p.m. to 9:00 p.m. From 5:30 pm to 6:00 pm is a dinner/mixer where we encourage you to meet with investors. At 6:15 p.m. we begin the pitches, bringing in the companies one by one to give a 10-minute pitch + 10-minute Q&A. Investors debrief for 3 minutes, then we bring in the next company until all companies have pitched. After you have finished your pitch, you are welcome to leave or stay to engage with the investors after all pitches are done. MAA investors have until the following Monday at noon to cast their votes for the companies they are interested in investing in. For the companies that receive enough investor interest, SCP will facilitate formal follow-on due diligence meetings as needed with the interested MAA investors.
- Investment – If the investors are happy with pitches and due diligence, they may choose to invest. Depending on the product or service, technical evaluation, industry, market dynamics, references, financial valuations, and legal/deal structuring of the company, this typically occurs between 4 to 8 weeks after Capital Cycle completion. In addition to individual opt-in investing, some MAA investors are part of a co-investment syndicate that makes investments.
While less common, it really does only take one truly interested investor to make a huge difference. While a majority of companies that receive MAA funding have progressed through the entire Capital Cycle, we expect to see companies receive capital even though they didn’t make it through the entire process. This is called a “Capital Cycle Fall-Out.” Perhaps, the company didn’t receive enough votes to make it to the top 10, or they did but didn’t make it to the Angel Event. This does not prevent interested MAA members from conducting due diligence and investing regardless. MAA members invest as individuals, and the organization does not prevent them from investing in any deals whatsoever, and in fact helps coordinate those diligence efforts.