Equity Investment Application

As you prepare to submit the Equity Investment Application, refer to the corresponding tasks and resources listed below (Hub / Curriculum / Finance):

FIN Task 2 - Create a Detailed Budget to Determine Financial Needs
FIN Task 3 - Identify Sources of Debt and Equity Financing
FIN Task 5 - Identify and Pitch Angel Investors for Equity Financing

Firm Name*

Employer Identification Number (PF Code)*

Find your PF Code by navigating to the Hub > Marketplace Tools > Firm Admin, on the top left.

Firm Contact E-Mail*

example@example.com

Facilitator Email*

example@example.com

School Name*

VE Region*

Street Address*

City*

State*

ZIP*

Please choose one of the following*

High SchoolCollege

Form Completed By:*

First NameLast Name

Position Title:*

New firms may solicit individual investments of up to $50,000 each in exchange for equity (stock) in the company. Up to three (3) individual investments are allowed at the start of the academic year (Aug-Sept) for a maximum of $150,000. New firms may solicit one (1) additional investment of $50,000 or less beginning January 1, 2025. New Firms are not allowed more than $200,000 in individual investments per academic year.

Exisiting firms may solicit individual investments of up to $40,000 each in exchange for equity (stock) in the company. Up to three (3) individual investments are allowed at the start of the academic year (Aug-Sept) for a maximum of $120,000. Existing firms may solicit one (1) additional investment of $40,000 or less beginning January 1, 2025. Existing Firms are not allowed more than $160,000 in individual investments per academic year.

Type of firm:*

NewExisting

Equity Investment Requested*

Exclude dollar sign

Please provide an overview of your business concept or idea. What products or services will your company offer? Why is there a need for this? What problem are you solving?*

Describe your company's target market. Be specific! Who, exactly, will be your customer? Include Demographic, Geographic, and/or Psychographic attributes.*

Describe the basics of your company's marketing plan: Product, Price, Placement, Promotion*

Name of Investor*

Name of Company or Affiliation*

Title*

In order for equity investments to be approved, a letter of support from a business partner must be submitted on their company letterhead.

In this letter, the angel investor should affirm that they have done the following:

Listened to a business pitch from the executive team outlining the firm's business plan, including the marketing plan, operating budget, and sales/revenue projections.
Reviewed company projections and assumptions.
Engaged in Q&A to clarify and guide the firm's direction.

The angel investor should indicate their level of investment based on the guidelines set for maximum equity investments.

Upon approval of the equity investment, the firm will prepare and send to the investor a stock certificate outlining the amount of the investment and the number of shares awarded.

Templates for the Angel Investment Letter and Stock Investment Certificate are available on the Hub / Curriculum / FIN Task 5.

Letter of Support*

Templates can be found on the Hub / Curriculum / FIN Task 5. Please upload as a PDF file.

Signature of Facilitator*

Attestation that the facilitator has reviewed the equity investment.

Information on recording this transaction on QuickBooks for the Balance Sheet can be found on Hub / Curriculum / ACCT Task 3 - Record Income in QuickBooks.

How to Account for Angel Investments:

When your request is approved, you will receive a deposit of funds in your bank account. This amount should be recorded in the cash journal as a cash receipt and reflected in the cash budget as an "other cash receipt". It should also be reflected in the balance sheet (added to Assets: Cash, and added to Stockholder’s Equity: Common Stock).

For New Firms:

This amount of money becomes the value of your Common Stock (for example, if you are given a $200,000 equity investment: you will have issued 20,000 shares of common stock at a $10 par value for a total value of $200,000).

For Existing Firms:

You will simply add this as additional shares of Common Stock (for example, your balance sheet from last year shows $90,000 of common stock and you were given a $200,000 equity investment: the value of your common stock is now $290,000 and you will have issued an additional 20,000 shares at a $10 par value for a total of 29,000 shares of common stock outstanding at a total value of $290,000).

Equity Investment Application

Contact Information

Equity Investment Request

Letter of Support from Angel Investor

How to Account for Angel Investments