Step 1: Deals Generated

An executive summary and/or a business plan, if available, are submitted. A quick review of these documents, including calculation of intrinsic internal rate of return will be made. Top-level qualitative evaluation is also conducted in such areas as development stage of the company, industry growth prospects, presence and magnitude of need for product/service, and management capabilities.

Step 2: Initial Meeting and Information Request

Formal presentation or further discussion of the business with the entrepreneur or project proponent is held. Additional information from the company such as a business plan, if not yet provided, as well as detailed financial projections, capitalization table, and organizational chart, among others will be requested after the meeting.

Step 3: Investment Committee Feedback

Members of the Investment Committee are sounded out for their initial opinions on the deal and the company, particularly its business and management. If positive feedback is obtained, a “Deal Champion” is assigned.

Step 4: Detailed Due Diligence

A host of activities happen at the stage that include all or a combination of the following:

• Meetings with management and other key people in the organization
• Consultations with industry/technology experts
• Validation of management’s claims by interviewing customers and suppliers
• Research on and/or interview with competitors
• Character checks
• Detailed analysis of assumptions to financial projections
• Sensitization of financial projections
• Research on comparable companies, including valuations
• Negotiation of investment terms (if no term sheet is provided)
• Face-to-face meetings between members of the Investment Committee and management

Step 5: Investment Committee Presentation/Approval

A recommendation to the Investment Committee is made via a presentation. Upon approval by the Investment Committee, a confirmatory accounting and legal due diligence is conducted prior to documentation and eventual funding.