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Minimum Qualifications for Consideration
To obtain initial consideration for investment by The Ohio Capital Fund as of the date of this information, a prospective venture capital fund must establish to The Ohio Capital Fund's satisfaction that it meets at least the initial criteria below. This is not an exclusive list of the criteria that will be considered by The Ohio Capital Fund. The Ohio Capital Fund reserves the right to add to, subtract from or otherwise modify the criteria at any time, without notice, and to waive any of the criteria with regard to any prospective venture capital fund.
Nothing herein is intended to modify or otherwise alter any applicable requirements of the Ohio VC Statute or the Investment Policy.
All Venture Capital Funds
Ohio-based Venture Capital Funds
- Venture Capital Fund. The fund must be a private, for-profit venture capital fund.
- Performance Potential. The fund must demonstrate a potential to generate high levels of successful investment performance.
- Commitment to Seed or Early Stage Investment. The fund must demonstrate in its investment history or its investment strategy a commitment to investing in seed or early stage businesses.
- Agreement to Invest in Ohio. The fund must be willing to agree that it will invest at least 50% of all The Ohio Capital Fund monies contributed to the venture capital fund in Ohio-based Business Enterprises in the seed or early stage of business development (the "Ohio Seed and Early Stage Investment Requirement").
- Reporting. The fund must be willing to agree that it will report to The Ohio Capital Fund on a quarterly basis, among other things, the following:
a) certain information regarding prospective and actual investments in Ohio-based Business Enterprises at the seed and early stage;
b) investment results on such investments and the total investments of the fund;
c) information relating to the fund's potential and actual investments in portfolio companies owned or managed by disadvantaged minorities or women; and
d) investment results, including overall IRR as well as IRR on investments that meet the Ohio Seed and Early Stage Investment Requirement.
- Insurance. The fund must carry liability insurance covering the fund and owners of its general partner for liabilities related to venture capital investing in amounts acceptable to The Ohio Capital Fund.
- Use of Name. The fund must be willing to agree that the OVCA and the Ohio Department of Development may refer to the fund's name in public announcements relating to The Ohio Capital Fund.
Non-Ohio-based Venture Capital Funds
- To be considered an Ohio-based Venture Capital Fund, a fund must have its principal office in the State of Ohio, where a majority of the fund's staff are employed and where at least one investment professional is employed who has at least five years of experience in venture capital investment.
- The Ohio Capital Fund's capital commitment to an Ohio-based Venture Capital Fund may not represent more than 50% of the total capital commitments to such fund from all sources.
- The Ohio Capital Fund's capital commitment to any venture capital fund which is not an Ohio-based Venture Capital Fund may not represent more than 20% of the total capital commitments to such fund from all sources.