Investment Process

1, Due Diligence. The investment evaluation process is characterized by a series of due diligence activities that vary in scope and intensity depending on the nature of the investment currently being evaluated. In conducting its due diligence, IVP engages in the following:

Business plan review. The business plan provides a basis for establishing a basic understanding of the investment opportunity. It should describe the company, its history, its product and/or services, its management team, its business strategy, applicable technologies, market trends, products, competition, funding requirements, and sources and uses of funds. Historical (if applicable) and five-year financial projections consistent with the business strategy are also required.

Management meetings. The conduct of meetings with top management of the prospective investee company enables IVP's professional and investment teams to assess the business opportunity as well as management's capabilities.

Investment opportunity analysis. Geared with the business plan, other information relevant to the prospective investment at hand (e.g. research materials on the company, its product s and/or services, its market and market trends, competition; term sheet; etc.) results of interviews, findings from location visits, observations on product or service tests, among others, IVP evaluates the investment proposal against a set of investment criteria, which may change from time to time, depending on market conditions.

2. Investment Committee Approval. The Investment Committee reviews and approves potential investment and divestment proposals in accordance with the investment policies and conflicts guidelines.

3. Legal Closing and Funding. In the event that an investment proposal has been approved, IVP executes the necessary legal documents and releases the pre-approved funding to the Investee partner.

4. Active Board level participation (either as lead investor, active Board member, Board observer, Excom member, or other similar functions) Close supervision, through direct interaction with the management of Investee partners, is a principal and essential ingredient in the success of IVP's investment program. IVP monitors the progress of each Investee partner through the analysis of financial reports received from these companies, among others. In several cases, especially when IVP has taken a lead investor role, IVP has been active in providing guidance and advice to its Investee partners.

5. Exit Analysis. The objective of all of IVP's deals is to eventually convert its stake in the Investee partners into capital gains. The success of IVP's past investments relies heavily on early planning and preparation for potential future liquidity event.