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The question I get most frequently from founders during intro meetings is:
"How does the process look from here?"
Naturally not all companies and VC-processes are the same but below is how we @creandum generally work.
5 steps below:
"How does the process look from here?"
Naturally not all companies and VC-processes are the same but below is how we @creandum generally work.
5 steps below:
1. Data gathering -> Hotlist
Purpose is to get a deeper understanding of the business.
Questions will vary but we often ask for a P&L + Financial plan at this stage to understand prioritizations and past performance.
If excitement still is high we will hotlist the company.
Purpose is to get a deeper understanding of the business.
Questions will vary but we often ask for a P&L + Financial plan at this stage to understand prioritizations and past performance.
If excitement still is high we will hotlist the company.
2. Team input -> Q&A
The hotlist is a 1 slide preso pitched to the rest of the inv. team. They will provide input + questions.
Simultaneously we share a Q&A with the founders and work our way trough it tgt.
At this stage we have more talks with founders / customers / experts.
The hotlist is a 1 slide preso pitched to the rest of the inv. team. They will provide input + questions.
Simultaneously we share a Q&A with the founders and work our way trough it tgt.
At this stage we have more talks with founders / customers / experts.
3. Getting to conviction -> Investment Reco
Now we usually have a few key questions we spend time understanding in depth.
Sometimes we need to revisit market size, position in the value chain, competition etc.
When we feel comfortable around these we craft an Investment Reco
Now we usually have a few key questions we spend time understanding in depth.
Sometimes we need to revisit market size, position in the value chain, competition etc.
When we feel comfortable around these we craft an Investment Reco
4. Presenting to the full team -> Vote
The Investment Reco (a 10-15 slide long deck) is shared with the inv. team. In parallell the founders are invited to pitch to to the full team.
After the founders have presented they will leave the call and the Investment team will vote.
The Investment Reco (a 10-15 slide long deck) is shared with the inv. team. In parallell the founders are invited to pitch to to the full team.
After the founders have presented they will leave the call and the Investment team will vote.
5. Term sheet
If the vote is favourable we will present a TS to the founding team and after agreeing on terms, both parties will sign and the journey together has officially begun!
If the vote is favourable we will present a TS to the founding team and after agreeing on terms, both parties will sign and the journey together has officially begun!
Final remark:
This process can take anywhere between 2-8 weeks, and during that time you as an entrepreneur should also DD the VC.
Ask a lot of questions and make sure you like what you are seeing on the other end!
This process can take anywhere between 2-8 weeks, and during that time you as an entrepreneur should also DD the VC.
Ask a lot of questions and make sure you like what you are seeing on the other end!
