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Our Investment Process: From Contact to Exit

Well, a little too early to discuss stages and steps on a life changing path we might end up experiencing together you might think. Yeah, maybe, but we tend to think that outlining what you can expect from us over the years to come will be beneficial for you as an entrepreneur when deciding among the range of investor options. Also from our perspective, this plays a healthy role. If we can, we would like to be clear with what we expect of a potential relationship from the start-ups we decide to invest in, out of the large number of invitations we receive from exciting companies.

Therefore, for us it is important to have a transparent, well described process of how we manage our evaluation, selection and the structure of the investment and attached life cycle support that we give those entrepreneurs we do decide to back. Alongside a set of principles of way of working as an active investor we have of course reserved room for important flexibility and creativity. We do believe that building strong companies requires a portion of structure, predictability and processes. As a consequence, we have established a few steps that we prefer to follow to gain traction. 

1

gaining trust takes time

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2

A business plan is ticket to play

There is no such thing as a plan that will function as a single measure for our decision. However, if you don’t have a business plan that clearly present your idea, your addressable market and how you are going to win in that market, we can’t really see that you are investment ready. This requirement is based on experience and is simply there to ensure that your time and our time is spent in a good way.

3

Assessment and more details

We receive a lot of very interesting business ideas. Many of them will turn out to be well functioning enterprises. Nevertheless, we are only investing in a small percentage of all the ideas that we come across.

Simply because it is not that easy to come up with a great idea, backed by passionate people, a large addressable market waiting to be served, the right timing and a superior product. We promise though, that we will review all business plans. But only with the ones where we see a great potential we will ask for more details and work together with you and your team to further understand the important details behind your ideas and assumptions. This step will require numerous sessions to fully understand your value proposition, how you are going to win in your addressable market, getting to know your team as well as your strategic suppliers and partners. You will at this stage also get to know relevant team members at Amigos Venture Capital that have experience and knowledge specific to support your needs.

This might also include access to the Amigos network that will provide you with key capabilities and capacities to accelerate to your next phase.

4

the term sheet

Given that both of us still conclude that we have a great fit and good chances of succeeding together after assessing each other thoroughly we will enter into the phase of outlining the terms for the co-operation. A term sheet might sound very technical but is easy described as a document that outlines the proposed conditions for the investment.

It is to be viewed as a non-binding offer that will include detailed terms for our investment such as the amount we can provide, the pre-requisites for releases of capital, the share we request in return, the duration etc. To have reached this stage is very good evidence that your idea has great potential. At this stage you will have all the details needed to understand at what terms we are willing to invest and how we can support you in scaling your idea.

5

Due Diligence: Double-Checking Critical Assumptions

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6

formal decision to invest

Given that the Due diligence went well we should be good to go from Amigos Venture Capital. The decision to invest in line with the terms agreed in the term sheet will be formally minuted in the Amigos Venture Capital Investment committee. Another thing that is worth mentioning is that when we make a decision to invest, we normally also consider the perspective of continuous investments in your company, ourselves or through associated investors.