General Investment Criteria
and Parameters

Geographic Focus: The Fund will invest in rural areas in the Appalachian regions of Ohio, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi, and the entire states of Arkansas, Kentucky and Tennessee. In addition, the Fund may consider investments in rural areas outside of central and southern Appalachia. To determine if a company is located in a qualifying (e.g., "rural") census tract, please use the Rural Business Investment Program (RBIP) mapping tool.

Company Stage: The Fund will invest in expansion-stage companies.

Industry Focus: The Fund has a broad industry focus that includes, but is not limited to, manufacturing, technology, and software.

Investment Size: The Fund will invest $250,000 to $2,500,000 in each portfolio company. The Fund will generally invest in two or more rounds based on the accomplishment of milestones by the portfolio company.

Type of Security: The Fund generally will make equity investments in preferred stock.

Investment Term: The anticipated time for holding a typical investment is three to five years.

Likely Exit Scenarios: The most likely exit scenarios are external sale/merger or internal management buyout. However, other exit scenarios, including IPO, are possible.

Co-investors: The Fund may be a sole investor on occasion but most likely will lead an investment syndicate or co-invest in a round led by another institutional investor. When appropriate, the Fund will co-invest with other institutional investors and with seasoned angel investors.