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Whether by
way of direct contact or referral, our investment process normally
begins with the submission of a business plan by the prospective
entrepreneur for preliminary review by us, followed by a presentation
by the core team at our invitation.
Authosis
Ventures expects the business plan and discussion materials to be
well-researched and documented to include such detailed information as:
a) the type and extent of problem(s) or pain
points that the startup tries to solve or address. Is this a
“nice to have” product or “need to have”
product?
b) the addressable market segment, in terms of
location, size and growth rate;
c) product specifications, market research and
customer alignment/feedbacks to date;
d) unfair advantages or barriers;
e) the technology and product roadmap for
maintaining customers and sustaining competitiveness;
f) competition – who are the main
competitors, products and features, and their respective market share?
g) product development and revenue milestones;
h) human resource hiring plan and compensation
packages;
i) detailed budget and financial
projections with clearly stated assumptions, to include break even
analyses under alternative scenarios;
j) proposed equity structure and
financing plan; and
k) the exit strategy, including identifying M
& A opportunities and target acquirers.
Following
the initial presentation and discussion, if there is good match and
sufficiently strong mutual interest to proceed further, we will engage
in further dialogues that may culminate in the preparation and signing
of a letter of intent, outlining the principal terms and conditions of
the proposed financing. This in turn, sets in motion a detailed
due diligence process, which may include, a technology audit, customer
verification, one-on-one interviews with core team members and
reference checks, and a review of budget and financial
projections. A final term sheet would only be signed after
completion of the due diligence process.
We treat
the information confidentially and use it for internal investment
evaluation purposes only. We usually do not sign NDAs as we do
not have the resources to keep track of each piece of information that
is included in the numerous business plans submitted to us for review.
We encourage open dialogue and welcome the entrepreneur
to undertake due diligence on us as well. This reflects a
fundamental principle that we firmly believe in: that a successful
investment will only result from close collaboration between the
investor and investee. Venture funding requires a partnership
based on total trust in each other and shared commitment which is best
developed from day one. 
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