CTBC makes a limited number of venture capital investments, in companies that meet our investment criteria each year.Our evaluation process is limited to companies in our Central Texas service area.(Please refer to the Contact Us page to view the Central Texas counties that qualify.)Our evaluation criteria consider a target company’s: Cash Flow Potential, Management Depth, Risk Profile and Liquidity Event Strategy.CTBC’s Venture Capital Investment evaluation process is structured to allow CTBC to evaluate the strength of the Business Plan, determine the company’s Risk Beta and to complete a Valuation Analysis.The amount of CTBC’s investment and the structure of the investment will be determined by the results of our evaluation process.
In order to receive capital investment from CTBC each applicant for capital investment must follow a multi-step process:
Phase 1
Sign Non-Disclosure Agreement
Submit a Business Plan to CTBC for review
Phase 2
Formal presentation of the Business Plan by the Company seeking investment to CTBC
Submittal of a detailed Financial Plan by the Company
Submittal of Financial Models by the Company
Phase 3
CTBC Performs Due Diligence
Phase 4
Formal Meeting to discuss Deal Structure
Formal Meeting to discuss Valuation
Phase 5
Legal Documents Negotiated and Signed
Funding
Phase 6
Ongoing Performance Review
CTBC reserves the right to turn down a potential investment at any time during CTBC’s Venture Capital Investment process.The evaluation process typically takes between one and three months to complete, depending on the complexity of the Business Plan, and will require a significant amount of the target company’s management time.
