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1. Deal Flow comes
from our entrepreneur network, syndication partners, and
later stage venture capital firms. These deal flow
sources are attracted to SVC Partners by our ability to
perform due diligence and assist portfolio firms in
achieving critical time-to-market milestones. Obtaining most of
our deal flow from such qualified sources frees up more resources for
building portfolio value.
2. Evaluation
begins with the introduction of a business plan through one
of the members of the SVC Partners' network followed by a
face-to-face meeting and subsequent investigation. SVC Partners
assesses the strength and completeness of the team, the
company's technology, competitive advantage, target market,
marketing plan, financial history and projections, and
capital needs. The due diligence will include reference
checks with customers, industry experts, and management
references.
3. Selection is
based on input from our Advisory Committee and analysis of
team industry knowledge, technology development capabilities
with a "deep science" orientation, portfolio fit,
time-to-market focus, target market sizing and dynamics,
competitive landscape and entry points, capitalization
table, revenue projections and sales cycles, and recruiting
capability.
4. Decision rests
on discussions on perceived valuation, roles of both current
and potential co-investors, and deal terms. A
unanimous decision by the managing members is required to
proceed with each investment.
5. Value Creation
is achieved by assisting the portfolio company's management
team in implementing and utilizing methodologies that manage
and monitor time-to-market strategies using proven process
models. Important ingredients in these models are a strong
emphasis on early and frequent customer involvement in
product development, concentration on differentiators, and
recruitment of key contributors (advisors, executives,
strategic partners).
6. Liquidity Planning
is approached as a continuous process integral with value
creation that provides multiple options. All
management decisions are analyzed for strategic impact on
liquidity paths with the intent of maximizing investor
returns.
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