How to Apply for Funding
Application Process
NCIC Capital Fund welcomes inquiries from entrepreneurs seeking early-stage capital for technology-based businesses. Our application process is designed to be thorough yet efficient, respecting the time constraints faced by growing companies while ensuring we conduct proper due diligence.
Initial Inquiry
The application process begins with submission of a brief executive summary describing your company, technology, market opportunity, and funding requirements. This initial submission should be concise - typically 2-3 pages - and include:
- Company Overview - Brief description of your business, products, and value proposition
- Technology Description - High-level explanation of your technology or innovation
- Market Opportunity - Size of addressable market and growth projections
- Management Team - Background of key team members and advisors
- Funding Requirements - Amount sought, intended use of proceeds, and previous funding rounds
- Milestones - Key accomplishments to date and near-term objectives
Preliminary Review
Our investment team reviews all executive summaries within two weeks. If your company aligns with our investment criteria, we will schedule an initial meeting to discuss your business in greater detail. According to the Small Business Administration, proper preparation for investor meetings significantly increases funding success rates.
During the preliminary review, we evaluate:
- Fit with our investment stage, sector focus, and geographic criteria
- Quality and completeness of management team
- Market opportunity size and competitive dynamics
- Technology differentiation and intellectual property protection
- Capital efficiency and realistic path to profitability
Initial Meeting
If invited to present, please prepare a comprehensive presentation (typically 20-30 slides) covering:
- Problem being solved and customer pain points
- Product or technology solution
- Market size, growth rate, and segmentation
- Business model and revenue streams
- Competitive landscape and differentiation
- Go-to-market strategy and sales approach
- Management team backgrounds and organizational structure
- Financial projections (3-5 years)
- Funding requirements and use of proceeds
- Exit strategy and potential acquirers
Due Diligence Process
For opportunities that advance past the initial meeting, we conduct comprehensive due diligence typically requiring 6-8 weeks. This process includes:
Business Due Diligence
- Customer interviews and reference checks
- Market research and competitive analysis
- Financial model review and scenario analysis
- Management team reference checks
- Board composition and governance assessment
Technical Due Diligence
- Product demonstration and technical review
- Intellectual property analysis and patent review
- Technology architecture and scalability assessment
- Development roadmap and resource requirements
- Third-party technical expert evaluation (if needed)
Legal Due Diligence
- Corporate structure and capitalization review
- Material contracts and customer agreements
- Employment agreements and stock option plans
- Litigation review and regulatory compliance
- Insurance coverage assessment
Investment Decision and Term Sheet
Following successful due diligence, our Investment Committee meets to make a final funding decision. If approved, we issue a term sheet outlining the proposed investment structure, valuation, governance terms, and conditions precedent to closing.
As outlined by the National Venture Capital Association, term sheets typically include provisions addressing:
- Investment amount and valuation
- Securities structure (preferred stock, convertible notes, etc.)
- Board composition and voting rights
- Protective provisions and investor rights
- Anti-dilution protection
- Liquidation preferences
- Vesting schedules for founder stock
- Co-investment and follow-on investment rights
Documentation and Closing
Upon term sheet agreement, legal counsel prepares definitive investment documents. The closing process typically requires 4-6 weeks and involves:
- Negotiation and execution of investment agreements
- Finalization of any outstanding due diligence items
- Board resolutions and shareholder approvals
- Escrow arrangements and closing conditions
- Wire transfer of investment proceeds
Timeline Summary
From initial submission to funding, the typical timeline is:
- Weeks 1-2: Executive summary review
- Weeks 3-4: Initial meeting and presentation
- Weeks 5-12: Due diligence process
- Weeks 13-14: Investment Committee decision and term sheet
- Weeks 15-20: Documentation and closing
Total process: 16-20 weeks for most transactions
What We Look For
Successful applicants typically demonstrate:
- Experienced, complete management team with relevant industry expertise
- Differentiated technology with clear competitive advantages
- Large addressable market with strong growth dynamics
- Proven customer demand or pilot implementations
- Capital-efficient business model with clear path to profitability
- Realistic exit potential within our 48-month timeframe
- Intellectual property protection for key innovations
- Alignment with our geographic focus (Ohio/Indiana)
Common Reasons for Declining
To help entrepreneurs understand our decision-making, common reasons we pass on opportunities include:
- Incomplete management team or lack of relevant experience
- Insufficient market size or questionable growth projections
- Weak competitive positioning or commodity technology
- Unrealistic valuation expectations
- Poor capital efficiency or excessive funding requirements
- Unclear exit strategy or limited potential acquirers
- Geographic location outside our investment region
- Investment stage too early (pre-prototype) or too late (profitable, established company)