AA Capital logo
Introduction Venture Capital Investment Becoming an Investor A Reverse Merger Submit your plan Contact Us
collage

  Submit Your Business Submit Your Business Plan

Business Plan


If you are interested in taking your company public or raising finance, please submit a written business plan and full resumes (not single paragraph summaries) of key founders to: 
confidential@aacap.net

    Contact Us  Contact Us

Email: info@aacap.net
headoffice@aacap.net
investorrelations@aacap.net
admin@aacap.net


funding 
 Funding Criteria


The information provided below outlines AA Capital's general investment criteria and approach. Ventures that don't fit our requirements for funding may still be submitted to our various partners for consideration

Funding Criteria

We are primarily looking for companies in the following industries and market sectors. Our technical understanding and fundamental knowledge enable us to quickly review new business proposals in these areas.

  • Finance
  • Manufacturing
  • Technology
  • Contracting
  • Oil, Gas, and Coal Mining

Stage of Investment

We primarily invest in emerging and promising companies with significant growth potential. Our investment sweet spot is at the Series A and B level. However, we often participate in earlier-stage companies and will consider a Series C investment as well. The table below outlines various stages at which AA Capital will consider an investment.

 

 

Stage

Investment Interest

Idea Only

None

Seed

Low

Startup

Medium

1st Round / Series A

High

2nd Round / Series B

High

3rd Round / Series C

Medium

Later Rounds

Low

Mezzanine Stage

None


 

Investment Size

Our usual deal size ranges between $1 to $5 million. We sometimes invest smaller amounts to get a project off the ground. If a project requires more than $5 million in funding, we will work with other investors to raise the amount necessary to meet the company's needs.

Type of Investment

We typically make equity investments. We sometimes use debt to supplement an equity investment but don't participate in debt-only investments

Management Team

We are looking for a team dedicated to growing an exceptionally successful business and having the knowledge, experience and track record to do so. Demonstrated success in previous undertakings, entrepreneurial spirit and the desire to create shareholder value are necessary attributes. The team does not have to be complete. We often assist in filling it out.

Proprietary Product or Service

We are looking for highly differentiated, unique and significantly superior products and services. It needs to be demonstrated why customers will purchase the company's product or service rather than purchase a competing alternative.

Marketability

We are most likely to invest in a company that addresses customers in large, growing markets that can be identified and accessed economically. If your venture fits our requirements for funding we would like to talk to you and your management team.

Venture Capital FAQ

AA Capital has compiled this FAQ to answer common questions about our venture capital operations. We appreciate feedback from entrepreneurs on how we can improve this section.

1. Why doesn't AA Capital sign Nondisclosure Agreements?
2. What are AA Capital’s criteria for investment in my company?
3. What is the process after I submit my executive summary for review?
4. What type of exit strategy is AA Capital looking for?
5. What do you consider an attractive time period for a company's exit strategy?
6. Can I raise venture capital if all I have is an idea?
7. Do you invest in public companies?
8. How much equity does AA Capital require for an investment?
9. Does AA Capital participate on my Board of Directors?
10. What is AA Capital s Management Involvement?
11. What type of return is AA Capital looking for?
12. Are investments by AA Capital debt or equity based?
13. Do you invest in young, but more developed companies?
 
1. Why doesn't AA Capital sign Nondisclosure Agreements?

Like the majority of VC's, we do not sign NDA's because it would open us up to potential litigation and would seriously limit the number and type of deals we may want to evaluate for our portfolio.

2. What are AA Capital’s criteria for investment in my company?

AA Capital invests in promising companies in a broad section of industries. Specific investment criteria can be viewed here. Please review it thoroughly before submitting an investment proposal to us.

3. What is the process after I submit my executive summary for review?

After we receive your executive summary, one of AA Capital’s associates and/or partners will review and evaluate your opportunity for investment. If we determine your opportunity is not a good fit, we will inform you that we are not pursuing an investment. If we determine that your opportunity may be a good fit, we will contact you to request more information (often a full business plan, management resumes and any other relevant information). If we are interested in learning more after reviewing this information, we will setup a conference call or face-to-face meeting to get to know you, your team and your opportunity in more detail.

4. What type of exit strategy is AA Capital looking for?

AA Capital’s preferred exit strategy depends on what is most suitable for your company and can include an initial public offering (IPO).

5. What do you consider an attractive time period for a company's exit strategy?

Like most VC's, AA Capital is looking for companies that can reach an exit event in 2 to 5 years.

6. Can I raise venture capital if all I have is an idea?

Raising venture capital with just an idea has become very difficult, especially after the burst of the .com bubble. Most traditional venture firms will focus on companies that have established operations and management and have developed or completed its products or services. Raising capital for an idea-only business almost always requires soft money from Angel investors, which is typically accomplished through a private placement. Entrepreneurs with companies at seed-stage can still be helped however it often an expensive and lengthy process.

7. Do you invest in public companies?

AA Capital does not invest in public companies.

8. How much equity does AA Capital require for an investment?

It depends entirely on the amount of the investment, the valuation of the company, the stage of the company, the future potential for growth and the proposed exit strategy. Our best investments have been those where the founders and management of the company had majority ownership.

9. Does AA Capital participate on my Board of Directors?

We typically take a board seat if we lead the investment.

10. What is AA Capital s Management Involvement?

We're not bankers, lawyers or financial sharks interested in taking over your company. We're entrepreneurs turned venture capitalists with extensive operating experience. We think like you, work with you and support you by taking an active role in management and the board without limiting your overall control.

11. What type of return is AA Capital looking for?

At liquidation (merger, acquisition, IPO or buy-back), most early-stage VC firms are looking for returns of about 5 to 10 times of their investment. While returns vary by industry and deal structure, a company with lower than 3 x returns on investment will have difficulty obtaining venture capital and should consider alternative funding sources.

12. Are investments by AA Capital debt or equity based?

We primarily make equity or debt/equity investments. We are not lenders and do not participate in debt-only investments. If you are looking for a debt-only investment you should probably consider other ways of raising capital.

13. Do you invest in young, but more developed companies?

Yes. Most of our venture capital investments are made in young and growing companies that are already operating and generating revenue. We also participate at the Series B and C level, but typically have no interest in mezzanine financings.

German Public Listing - Frankfurt Stock Market - Frankfurt Open Market - Frankfurt IPO - German Stock Market - Raising Capitals