CenterPoint For Entrepreneurs
 Investment Criteria
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 Frequently Asked Questions
   
   

 

Frequently Asked Questions

How do I approach CenterPoint about investing in my company?
We only consider investment opportunities that are recommended or referred to us by personally known sources, including: STARTech and other leading high-tech incubators; other venture capital firms; financial and legal service providers; managers of our portfolio companies; and current or former business associates.  We do not review opportunities that are introduced by unknown sources or placement agents.

What are the initial steps?
Generally, at least two investment professionals will review a written executive summary or business plan. The professionals assigned to a deal represent both those who were initially introduced to the deal and those who are subject matter experts within our team. If there is initial interest, a face-to-face meeting will be scheduled with the candidate company’s key executives and CenterPoint so our investment professionals can listen to the pitch.

How many meetings will be required through the evaluation process?
The due diligence process typically raises issues that are best addressed as quickly as possible between the management team and the investment professionals sponsoring the deal.  If the results of due diligence are positive, then the management team will present to CenterPoint’s entire investment committee at least once.  Sometimes, a decision on an investment is definitively made at this meeting. More often, valid questions are raised by the group.  These questions may require further due diligence and a second presentation to the investment committee.

How long does it take for CenterPoint to make an investment decision?
CenterPoint's decision-making process is thoughtful and, by its nature, occurs over a matter of weeks as opposed to days.  We don't commit to a new venture unless there is a strong majority of the Managing Directors behind it. But once we agree upon an investment, we can move quickly as circumstances demand.

What happens if we make a deal?
If all goes well, CenterPoint will offer a term sheet — effectively a proposal to invest a specified amount of capital in your venture in exchange for a specified amount of equity. Term sheets often include conditions regarding board structure, intellectual property ownership, and management roles.  CenterPoint prides itself on the forthright nature of our relationships with our entrepreneurs.  Nearly all material terms will have already been discussed before the management team is presented with the term sheet.  We attempt to close deals within a reasonable timeframe that is respectful of all parties’ limited bandwidth.  Final closing normally occurs within four weeks following mutual acceptance of the terms.

What is CenterPoint’s role after an investment is made?
We create a “partnership with management” relationship in our early-stage ventures. Through ongoing close collaboration with management and a focus on businesses that we thoroughly understand, CenterPoint can add the most value for the long-term success of our portfolio companies.

How do I obtain a job with one of your portfolio companies?
Please contact the company directly.  Our companies’ websites are listed in the Portfolio Section.