Does engaging with TechColumbus cost money?

No. Thanks to the state of Ohio's Third Frontier Program, our sustaining members, our regional partners, and member companies, TechColumbus can offer our coaching, mentoring, and commercialization services at no charge to  prospective entrepreneurs. We do, however, charge for membership with TechColumbus, which provides many valuable benefits and helps sustain our programs.

What kind of companies is TechColumbus seeking?

Our focus is on opportunities and businesses that are located in (or willing to relocate to) central Ohio, and are primarily engaged in the fields of information technology, advanced materials and bioscience/healthcare innovations. Ideal portfolio companies will be early-stage companies that are considered to have strong potential to become high-growth businesses.

How does TechColumbus define “high-growth potential”?

High-growth indicates the company could reach $30 million to $50 million in revenues within three to 10 years, depending on the stage of development.

How will TechColumbus evaluate my opportunity?

Each of our available funds and programs has slightly different “compatibility” criteria, but in general we’re seeking companies and opportunities that have a high probability marketplace viability and will attract necessary follow-on funding.

How does TechColumbus decide which companies or opportunities to assist?

Each fund and program has a slightly different process and timeframe, but the common elements are the Deal Flow Evaluation Committee and the Investment Committee. We will provide and facilitate assistance for all opportunities; those selected for coaching and presentation are vetted by the committees, and investment decisions are made based on our assessment resulting from a rigorous due diligence process.

Is TechColumbus going to run the businesses it invests in?

No. Our commitment to partnership with entrepreneurs means that we strive to build close bonds with our portfolio management teams without seeking complete decision-making control. We believe that early-stage ventures are most likely to achieve great performance when founders and management own a substantial stake in the company. However, all decisions to begin assistance or continue support of a company are based on attainment of specific milestones that are set and agreed upon throughout the process. We will be continually evaluating the status of client companies by gathering performance metrics and comparing with established goals.

What does TechColumbus ask for in return for its investment?

This depends upon the funds used for any portfolio company and can range from non-dilutive grant awards to convertible debt instruments to participating preferred equity investments. The most important ‘ask in return’ for any portfolio companies are the results, as measured by concept validation, marketplace acceptance, follow-on funding, and ultimate success.

How do I apply to engage with TechColumbus?

You can find information on the application process here on the TechColumbus site in the Getting Started section of our TechStart program. You will be asked to provide a variety of information about your company or idea in a concise, electronic executive summary format.

What happens after I engage?

TechColumbus will evaluate your company or business idea and determine the best way to assist based upon the right fit with available resources. This includes coaching and mentoring services to help prepare materials for investment ‘pitches’ or simply be an introduction to other available resources that we know can help. When ready, the TechStart Team will sponsor you for presentation to the Deal Flow Evaluation Committee or the TechAngel Screening committee for funding.

Why do you only consider funding “high-growth-potential” businesses, and not “lifestyle” businesses like restaurants, or small retail stores, or even a small manufacturing operation?

As an economic development organization partly funded by the State of Ohio, TechColumbus mission is to look for technology companies and ideas that have the most-likely potential to create wealth and employment on a very large scale. 

If TechColumbus turns me down for financing, does that mean there is nothing you can do for me?

Not at all – TechColumbus assists in the successful incubation of technology businesses. It is one component of a system designed to augment the start up company’s management with the professional services and advisors that are critical to start up company strategic, tactical and financial development.

TechColumbus provides assistance in a number of business development activities including:

• Market research and analysis
• Competitive positioning and pricing strategies
• Strategic plan development
• Product development planning
• Marketing and sales program and materials development
• Supplier, customer and strategic partnership agreements
• Recruitment of management and staff

Additionally, the staff of TechColumbus can act as a sounding board and advisor for company management. The process of developing a new technology business is risky and arduous. We provide support and services that help our client companies reduce the risk, effort and expense of critical business development activities.
 

I believe my business has the potential to achieve the kind of sales figures you seek, and is in a high-technology area with a huge market potential. Why was my request for funding declined?

We may simply disagree on the potential of your business. Our decisions are not personal – they are based on a lot of hard work and a rigorous due diligence process. When we evaluate a company or idea, we consider these broad topics:

• Potential viability of the company’s technology and/or product/service offering
• Potential size of the target market
• Experience and talent of the management team in place
• Financial model and revenue projections
• Potential to generate return on investment through an exit strategy

Another possible reason is that your business may already be too far advanced for funding from TechColumbus. One important aspect of our mandate is that we work with opportunities in the imagining, incubating, or demonstrating phases. If you have advanced your company to the point where you’re selling a significant amount of products or services, are profitable, or have already raised a significant amount of equity capital, you simply do not fit the TechStart profile.

Do I or my advisors have to be a member of TechColumbus to request assistance?

No. Although the benefits of membership are numerous, you are not required to be a member. But we highly encourage you and your employees to become engaged in the membership process.

How do you define the phases (Imagining, Incubating, Demonstrating) of development?

In the Imagining Phase, you are validating your technology and identifying a commercial market opportunity.

• Documenting how the technology works and how it might be applied to a commercial product
• Developing the business model, identifying users of the product and how it benefits them, and comparing it to competing products
• Demonstrating a proof of principal – repeatability in a laboratory setting
• Identifying the critical steps to move from concept to working prototype
•  Researching and documenting any intellectual property barriers and developing an IP strategy

In the Incubating Phase, you are further refining your product performance specifications and doing more in-depth market research to verify that a market does exist.

• Identifying target customers, what they might want, and why they might buy your product
• Verifying that the business has the freedom to apply the technology and acquire adequate IP protection
• Demonstrating through experiments or prototypes that the technology delivers a customer-acceptable product
• Producing product designs, documentation and production processes that support manufacturing of a reliable product at a cost that is reasonably acceptable to the market

In the Demonstrating Phase, You are generating technical and market proof that your product meets a need and that there are customers interested in buying it when it is fully commercialized. The tasks in this phase deal with the final product development and market acceptance.

• Finalizing product specifications for the market-ready version of the product
• Producing prototypes that closely approximate the market-ready product
• Proving the reliability of the technology embedded in the commercial product
• Demonstrating with pilot runs that the product meets specifications and that the manufacturing processes are delivering what is expected
•  Finalizing a business plan including detailed plans for marketing, sales, operations financing, and general administrative functions
• Proving that the product can be sold at or near the price contemplated in the business plan
• Identifying and arranging for the plant, property and equipment required for near-term production and hiring the key people required to operate the business as it scales