Buckeyes Backing Buckeyes

The Ohio State Early Investor Network (OSEIN) aims to foster an entrepreneurial relationship between Ohio State related investors and entrepreneurs. Investors will hear regular pitches from companies founded or managed by Buckeyes or licensing technology from The Ohio State University. Companies can seek investments from accredited investors through network pitches, providing transparency and simplicity to entrepreneurs wanting to reach Buckeye investors. OSEIN is an affiliated entity of the Ohio State Innovation Foundation and is a membership-funded network developed by The Ohio State University Alumni Association and the Keenan Center for Entrepreneurship.

Angel or early-stage investors are private individual investors focused on financing early or growth stage business ventures in exchange for equity. Unlike a venture capital firm that uses an investment fund, these investors use their own net worth. They may also be more patient with entrepreneurs and open to providing smaller dollar amounts for a longer time frame, but they do want to see an exit strategy at some point, typically through a public offering or an acquisition.

Investors must meet the SEC accredited investor requirements:

Financial Criteria

• Net worth over $1 million, excluding primary residence (individually or with spouse or partner), OR

• Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year,

- OR -

Professional Criteria

• Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82),

• Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company), OR

• Any “family client” of a “family office” that qualifies as an accredited investor.

Investor membership in the network is open to Ohio State Alumni, Students, Parents, Spouses/Partners, Grateful Patients, Fans, Friends, and Supporters of the mission of the program who meet the Accredited Investor requirements set forth by the SEC. Membership is not open to those representing accredited investors other than themselves or investing on behalf of an investment fund. Network investors are encouraged to invest in at least one company a year, but there are no activity or minimum investment requirements to remain an active member.

All investors must attest to their Accredited Investor Status on their application to the network and recertify their status annually after acceptance. Staff will accept this attestation as certification of the required income, net worth or experience as set forth in 17 C.F.R. § 230.501(a) (2022) by the SEC.

The Investment Committee reviews and selects companies to pitch their business and investment opportunity to network investors. For investors interested in a company, OSEIN facilitates due diligence and investment negotiations. Investments are made via a Special Purpose Vehicle (SPV) to the company, consolidating all interested investors into one entity.

As an OSEIN Investor you:

• Get access to a curated pipeline of investment opportunities,

• Share due diligence and expertise,

• Collaborate, network, and invest with other like-minded investors who have a wide range of industry and investment experience and share an Ohio State bond,

• Have the ability to make an impact and increase your Ohio State legacy by helping fellow Buckeyes grow their companies with capital and support,

• Have the opportunity to engage with Ohio State’s expanding entrepreneurial activities, ecosystem, and research and

• Receive membership in the Angel Capital Association with access to angel investing education and professional development.

Ohio State Early Investor Network members are required to pay annual membership dues of $1,500. OSEIN is also offering a one-time Founder Membership for $15,000 available for the first year of the program which provides membership for the lifetime of the network. Membership dues will be invoiced annually on the first of the month that a member joins OSEIN (e.g. if a member joins on August 5, 2023, the next year’s dues will be invoiced on August 1, 2024).

Membership is not open to those representing accredited investors other than themselves or investing on behalf of an investment fund. Network investors are encouraged to invest in at least one company a year, but there are no activity or minimum investment requirements to remain an active member.

No, OSEIN does not collect ongoing management fees or transaction-based investment fees. All operations will be funded by membership dues and donor support.

There may be separate fees associated with SPV formation and management.

Ohio State alumni who do not qualify as accredited investors or are seeking more experience before joining the investor network may join the Emerging Investors program. Emerging Investors will assist with business development and will play a significant role in deal due diligence providing in depth experience. Additionally, they will be paired with an investor in the network as a mentor. Continuing education opportunities will be provided to Emerging Investors on topics like venture financing, deal sourcing and business development, or portfolio management. There are no membership fees to join the Emerging Investor program.

To be eligible to approach the Ohio State Early Investor Network for investment the company must:

• Have an Ohio State alumni, current student, faculty and staff, or former student who was enrolled but did not complete their degree as a company founder, technology inventor of Ohio State owned property or c-level/director within the company, OR

• License technology from the Ohio State University.

OSEIN is open to startup ventures at all stages of growth and funding seeking capital. OSEIN is open to companies in all sectors other than alcohol, tobacco, marijuana, firearms, gambling, or pornography. There are no minimum raise requirements to approach the network, though proposed deal terms for interested investors must be submitted prior to pitching. Companies that have already received an investment through the OSEIN may approach the network to seek follow-on investments.

Meeting these minimum requirements does not guarantee that companies will be selected to pitch to the network. Companies will be evaluated by program staff for qualification and selected to pitch by a committee of network investors. Selected companies will be required to complete a due diligence process led by Investment Committee members, network investors and emerging investors should any network investors make a commitment to invest. Any companies unable to complete the qualification or due diligence process will not be considered by the network but may approach the network again in the future. The Advisory Board and program staff reserve the right to limit the number of times a company may approach the network to ensure equitable access.

Understanding that all companies interacting with OSEIN will not be ready to pitch to the full network, we are working with the other Keenan Center programs to extend educational opportunities to alumni entrepreneurs.

Each investor will make their own decisions as to whether they invest in a company that pitches. There are no minimum investment requirements, though we do encourage investors to invest in at least one company a year.

In addition to any monetary investment a member may make, members are expected to be active in the network and to be available for advice, guidance, and opinions to support investment decisions and to help companies in which they invest grow.

No. OSEIN members are not committing capital to a fund and are not required to invest in any deals. Individual members are free to either invest or not invest in any opportunity as they so choose.

OSEIN members are expected to be active in the network. This includes introducing investment opportunities for the group, collaborating and contributing to diligence processes and investment decisions, participating in the investment process on a regular basis, providing support and guidance for companies in which they invest based on experience and expertise and encouraging others to join the network and share the Buckeye spirit!

Company Sourcing

• Actively seeking out investment opportunities that fit with member preferences.

• Developing early access to investment opportunities with companies where the OSEIN leadership has previously developed a trusted relationship.

Company Communication and Information Sharing

• Communicating throughout the process with applying companies.

• Gathering and packaging detailed information for each company for efficient consumption by members.

Company Screening

• The Ohio State Early Investor Network Investment Committee meets with and reviews companies before they pitch to the network.

Due Diligence

• Conveying diligence requirements.

• Providing administrative assistance to investor deal teams

Member Recruitment

• Marketing to and communicating with prospective members.

• Managing the application process.

Event Management

• Planning, scheduling, and coordination of pitch events and networking events for OSEIN members.

The Ohio State Early Investor Network is not a venture fund, investment bank, broker-dealer, investment clearinghouse, investment portal, investment advisor, tax, accounting or financial advisor, and the Ohio State Early Investor Network is not registered with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, or any state securities commission. Rather, the Ohio State Early Investor Network is a forum in which members may discuss various aspects of investment and business, as well as be introduced to companies for possible investment. The Ohio State Early Investor Network does not provide advice, recommendations, or any other indication of appropriateness or inappropriateness of a particular investment brought to the attention of the Ohio State Early Investor Network. The Ohio State Early Investor Network does not endorse any investment opportunity, makes no independent investigation to verify information provided by companies submitting to the Ohio State Early Investor Network for presentation or otherwise, and makes no representation or warranty regarding the same.

We present primarily early-stage startups across all sectors, including technology, healthcare, consumer products, and more. These companies may vary based on market trends, investor preferences, and the potential for scalability and growth. We aim to identify innovative, high-potential ventures with strong management teams and exciting ideas.

OSEIN intends to provide monthly pitch session with 2 or more companies presenting at each session.

Our network employs a selective screening process. Our Investment Committee evaluates startups based on factors such as market potential, scalability, team competence, competitive advantage, business model viability, and the alignment of the investment opportunity with the preferences of our investor network. We conduct qualification screenings, provide resource materials, and engage in discussions with entrepreneurs before they pitch to network investors.

The average investment size within OSEIN can vary depending on the specific opportunity and the preferences of individual investors. While some investors may make smaller investments in the range of tens of thousands of dollars, others may invest more in a single opportunity. The investment size is typically influenced by factors such as the stage of the startup, funding requirements, and the potential for growth. We do not have a minimum investment requirement for the network, but companies may set minimums themselves for investment.

If you are investing in a company that has pitched to the Ohio State Early Investor Network, you will invest as a group through a Special Purpose Vehicle to increase the effect of the investment and simplify management of the investment.

In most deals the investment terms are set by the lead (or largest) investor. This usually is a venture capital fund or other type of institutional capital investment. Sometimes a group of investors forms a syndicate which negotiates the term sheet with the company.

While the network will host in person events and pitch session, most pitch sessions and meetings will be held virtually or with a virtual option. Members can also view a recorded version of the pitch if their schedule doesn’t allow for participation at the time of the meeting.

Risks of angel or early-stage Investing:

• High failure rate: Many startups fail, and angel investors may lose their entire investment.

• Illiquidity: Investments in startups are typically not easily convertible to cash.

• Market and industry risks: The startup may face market challenges or be in a volatile industry.

How to balance these risks:

• Diversify Your Portfolio: By spreading your investments across different startups and sectors, you reduce the impact of any single investment failure on your overall portfolio.

• Conduct Thorough Due Diligence: Evaluate the company's business model, market potential, competitive landscape, financials, and the background and expertise of the founding team.

• Active Involvement and Support: Actively engage with the startups you invest in, offering support, mentorship, and guidance when possible.

• Stay Informed and Educated: Continuously stay updated on market trends, emerging technologies, and industry developments.

• Understand Your Risk Tolerance: You should only allocate a portion of your overall investment portfolio that you are comfortable with potentially losing.

The Ohio State Early Investor Network uses a deal flow platform, Venture360, to coordinate and distribute all network and deal information. Your investment portfolio will be tracked on the platform allowing you real time access to all deal information. Companies typically provide their investors with quarterly updates. In addition to these company updates, periodically and on an ad-hoc basis, OSEIN may pass along pertinent information that becomes available to it.

In addition to being shareholders in member invested companies, OSEIN’s members can provide support and guidance to such companies based on experience and expertise. This could include advice on business strategy and tactics, introductions to potential customers or partners, assistance with recruiting, and facilitation of future financing rounds or exits. When appropriate, members may be asked to serve on the board of directors of member invested companies. Members will not be required to serve on boards.

No. We do not allow solicitation of our investors, even by other network members. Ohio State Early Investor Network meetings and communications are focused on investment pursuits and members will not solicit other members, The Ohio State University or any of its affiliates or any company that has applied for funding to the Ohio State Early Investor Network for business.

Yes! If the company meets the qualification requirements for the network, you are welcome to share the Company Intake form with them. All companies must go through the full review and approval process and will not be shown preferential treatment based on member involvement. Members must also disclose to the Ohio State Early Investor Network the particulars (e.g., relevant entity and dollar amount) of such member’s investments, if any, in entities brought to such member’s attention by the Ohio State Early Investor Network for purposes of Ohio State Early Investor Network tracking and impact assessment.

Companies fill out an initial 40 question due diligence questionnaire. This is reviewed by the Investment Committee and available to investors prior to the company pitch. After the pitch, if there is sufficient interest, an investor deal lead will form a due diligence verification team to review and verify the information provided in the due diligence questionnaire. Investors may have additional questions for the company that will be answered at this time.

No. OSEIN respects the privacy of members and will not publish a membership list. Our Advisory Board members are public and provide a representation of network investors. As companies enter the formal diligence process with OSEIN, interested members may be introduced to the company. Background information can then be shared directly by members with companies.

Yes! Please feel free to review a copy of the Ohio State Early Investor Network Membership Agreement and the Non-Accredited Participation Agreement here.

Yes! Please email OSEIN@osu.edu.