The process for funding under this program is summarized below and provides the steps involved to secure funding under the  Paragon Venture Fund.

Step 1 – Submit Application and Executive Summary
Our application for funding requires the submission of an application and an executive summary that highlights material information about the company, its product(s)/services, the market, competition, management and financial projections. This process is designed to obtain the most important information about your business and to determine if your company will advance to the next step in the evaluation process. You may also submit additional documentation to support your application which may include a business plan, promotional materials, contracts, etc.

Step 2 – Initial Assessment
All applications submitted to the Paragon Foundation will undergo an initial assessment to evaluate if the investment and submission criteria has been met and evaluate the request for funding and determine if the company will be invited to do a funding presentation.  

Step 3 – Present Your Funding Request
The Screening Committee will determine if your business plan is sufficient. You will be invited to present your request for funding to Selection Committee. All applicants should be prepared to deliver a twenty minute investor presentation and address any questions posed by the committee.

Step 4 - Proposal and Term Sheet
If a determination is made in favor of funding, the applicant will receive a proposal letter and term sheet outlining the general terms under which an investment by Paragon would be considered.

Step 5 – Paragon Conducts Due Diligence
Upon acceptance of the Proposal Letter, Paragon will perform a comprehensive analysis and documentation will be requested pertaining to all aspects of the company’s operations including the management, market, product/services, and employees.

Step 6 – A Commitment Letter and Funding
When all parties are satisfied with the terms and language contained in the term sheet and due diligence is complete, the deal is executed. At this juncture, the funding agreement spelling out all terms and conditions will be provided. After the final documentation is completed the investment funds will be transferred to the company.

Step 7 - Monitoring
Closing the deal is only the beginning of Paragon’s funding process. As a portfolio company, you will have access to a network of business resources and experienced professionals who can provide essential guidance for the growth and success of your business. All investments will be monitored for the life of the investment.
 

While the merits of each investment will vary, we evaluate investment/loan ventures according to the following criteria:

Industry - The Paragon Venture Fund does not target any specific industry and will  give consideration to those businesses meeting the investment criteria. The funded operations should generate a desirable return on Paragon’s investment, and create employment for targeted populations.

Management Experience - We seek passionate, committed and experienced entrepreneurs and management teams with a track record of proven leadership in the company’s specific industry or in prior entrepreneurial ventures. As we will be working together as partners, your team must be open to and comfortable with receiving input provided the Paragon Foundation.

Owner Investment in Project - The owners of the company must have invested time and capital into the business venture.

Use of funds - The proceeds must be used for the specific purpose outlined in the application for funding. Proceeds may be utilized for a variety of uses including, but not limited to, starting a business, acquiring a profitable business, funding business growth or expansion or developing technology.

Market Opportunity - Paragon seeks to fund companies that can demonstrate evidence of strong market demand or a compelling need for their products or services. The investment opportunity should generate healthy operating margins and cash flow sufficient to sustain the business and cover the investment repayment requirements.

Growth Potential - We look for companies that can grow quickly and manage the scale necessary to succeed. Your company must demonstrate a plan to generate significant profits beyond the initial product idea.

Economic Impact - The impact of the proposed venture will be evaluated based on the number of jobs created or retained, the quality of jobs created, infrastructure created and other characteristics that provide growth in the local economy.

Type and Location of Business - The Paragon Foundation seeks to invest in small and minority businesses located in Palm Beach County, however exceptions may be made for investments in organizations participating in the regional biotech sector or companies willing to commit to relocate if an investment is provided.
 

Your executive summary should contain information on the subjects identified below. The list below is not intended to suggest any particular order of information, but rather is a guide for pertinent information that should be covered.

The Company
History, including accomplishments to date
Mission

Product(s)/Services
Description of product(s)/services
Ownership
Development stage
Timing of, and process to, commercialization
Unique attributes and opportunities

Market
Size and definition
Industry trends
Needs for product(s)/services
Customers
Sales/distribution plan
Necessary partnerships and status

Competition
Comparative analysis, including key features and benefits
Competitive advantage/market differentiators
Barriers to entry for competitors and company

Management
Experience of all senior management, including previous start-ups
Previous experience working together
Needs/key vacancies
Board of Directors
Advisors

Financials
Owner’s investment
Summary projected financials (one and three to five years)
Funding needs for this round and subsequent rounds
Use of funds
Repayment or Exit strategy and timing
Business milestones for next six months and next two years