In May 2007 Enterprise Ireland (in conjunction with the Irish Software Association) gave a morning workshop on their investment process with the focus on making it clearer how it works. This is one of two presentations from the workshop which I have scanned in.
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1. .-1--- >.-. J::;- QillffillJ'" Investment Services
Division. An Overview. lrish Transforming Industry 2008-2010
2. eill[IiTff'" Structure lnvestment of Services (lSD) Division
Transforming Industry lrish 2008-2010 )
3. Focus of Work dll["ilis'" - Commercial Evaluation. -
Investment - advisers undertake and commercial diligence due
negotiate equityterms a parallel in process Investment for
Committee, andGroMhFund R&D Committees. - Equity. - Investment
advisers manage Equity the Portfolio all Equity and maintenance
issues. - Divestment - Policy Long termaimto exitwhencompaniescan
standalone. Transforminq Industrv lrish 2008-2010
4. dllffillJ'" - Growth Capital. - Manage Seedand Venture
programmes. Capital - Business Angelsinitiative Tax-based &
developments BES. e.g. . Sourcing domestic lnternational &
investors. SustainingJobs Unit. - Recently to jobsand provide
established sustain funding fromthe Stabilisation Funo. -
EnterpriselrelandMission. To accelerate development world-class
companies the of lrish to achievestrongpositions globalmarkets, in
resulting in increasednational regional and prosperity.
Transforming Industry lrish 2008-2010
5. :t--= ENTERPRISE Q/ IRELAND Process Equitylnvestments. El
Due Diligence for Transforming Industry trish 2008-201 0
6. 4_ '---a ei ll["lTlJ'" ' Thereare two stagesin the El
EquityInvestment Process. " StageOne: Pre-lnvestment Commercial
Evaluation. - StageTwo: Post-lnvestment EquityMaintenance.
Transforming Industry lrish 2008-2010
7. VrZ dilfiillJ'" " StageOne: Pre-lnvestment Commercial
Evaluation. - Two steps in the Commercial Evaluationprocess. -
One:Review all Financial of Information submitted. - Two:Review
theCompany, of Business Model, Management StructureFunding, ,
Industry. Transforming Industry lrish 2008-2010
8. ei Fl[iT[J'" Step One: FinancialDue Diliqence. - Request
relevant all financial - to information include Management &
Audited Accounts. Review theAccounts allother of and relevant
financial information submitted. 12 MonthProjected Cash-flow
analysis. - SalesPipeline Current projected. and Fullreview the
FDS(Financial Sheet). of Data Trans{orming Industry lrish
2008-2010
9. eill[nT[J'" list of additional information needed
assessinvestment. to Cap TableFullydiluted and % shareholding
class,shareholder, (# , by valuation basis). and - Options
ESOPdetails. Funding (if History therehavebeenother rounds).
Detailedbreakdownof fundinq fromPromoters. PrivateInvestors and
fundingtype proposed. Directors Loans andSalarv Breakdowns. lrish
Transforming Industry 2008-2010
10. dtl[IillJ'" StepTwo: Non Financial DueDiliqence.
Examination the Business of StrategyBusiness / Model. Analysis
Business andthemain the plan drivers the business of plan. ldentify
whatarethe keyissues mayprevent Company that the from succeeding.
Review the Management promoters of and expenence. Review the
Management of structure Group and structure. Review the Technical
of Assessors report. Transforming Industry lrish 2008-2010
11. -.-,.. t -_.-- - -:":1'==- dli[IlT[J'" Additional
lnformation. Details any lP licensing of arrangements. Review
competition business of and environment. Following review requested
full of informationCommercial a Evaluation Meeting organised
thecompany. is with Undertake review theinformation thecompany,
ascertain a of with to andrationalise assumptions sales, all on
projections costs, and finances. Submission theCommercial of
Evaluation report the Investment to Committee. Transform;ng
lndustry lrish 2008-2010
12. 'V:4='--:---- ei ll[..illJ'" StaqeTwo: Post-lnvestment
EquitvMaintenance. FollowingInvestment CommitteeApproval,
lnvestment be the will assigned the El Equity into Portfolio. An
Equity Advisor the Equity in Department be assigned will to manage
investment. the The EquityDepartment issues dealswithall
equitymaintenance and manages Equity the Portfolio. Transforminq
Industrv lrish 2008-2010
13. --'-'--.---r' eill[..ilrJ'" Typesof EquityMaintenance
events. Newinvestments further and funding rounds. Redemption
Conversion El'sshares. & of TradeSales Joint & Ventures.
Consent Share to options ESOP & plan's. lssue's convertible
notes. of loan Transforming Industry lrish 2008-2010