• Analysing of the business plan and financial forecasts, conducting a technical technical expertise, if necessary;
• Looking for co-investor(s);
• Negotiating on investment terms, preparing a term sheet;
• Apprising the prospective investment case and transaction by the Expert Committee of the Development Fund. If a positive conclusion is reached, the Management Board of the Development Fund will have the final decision;
• Completion of due dilligence (technical, legal, financial, commercial)
• Preparation of a shareholder agreement between representatives of the Development Fund, co-investor(s) and the company;
• Final signing and transfer of funds. Meanwhile, arrangements are made regarding the way and timing of the Development Fund's exit from the company.
A good rule of thumb of venture capital states that returns from successful investments must cover the cost of possible failures. Therefore, investment decisions require careful preparation. Global practice shows that the timespan from the first contact to ana actual investment can range from four months to a few years. we at the Development Fund make every effort to conclude negotiations in six months on average, but the saying 'measure thrice and cut once' also applies to us.