Although not designed to put applicants off, you have to bear in mind these are the typical steps that a 'perfect' investment process might take. Although we do have our written criteria, investing is as much about 'gut instinct' as it is about mitigating risk.
A typical successful investment flow might consist of these steps:
In the evaluation of any investment there are typically three primary stages:
Screening Due Diligence: Out of the many applications we receive we use a predetermined criteria to quickly select the ones that we will spend more time and money evaluating. You have an advantage if you come via a referral from a trusted source. Rejections at this stage could for example be because of the geographic region, the stage of the business, the deal size or the industry sector.
Business Due Diligence: This is when we look more closely at the application, the team, product or service, potential, defensibility and the business model.
Legal Due Diligence. If all the Business Due Diligence looks good we would then appoint our advisors to begin legal due diligence.
EC1 Capital recommends that all successful applicants should have all the required legal documentation available and to hand to move the application along at an expeditious pace if you are seriously looking for investment from any company.
Using a password protected 'DropBox' is a useful tip for sharing data securely.
Sample documentation can include:
- Articles of Association
- Shareholders Agreements
- Financial Statements
- Any Service Agreements
- Any Minutes of Board or Shareholder meetings
- Any Founder Agreements
- Cap Tables and any Share Option Schemes and # of outstanding shares
- Founder CV’s
- Company Accounts
- Any IP documentation
EC1 Capital March Portfolio MeetUp
On Thursday March 18th EC1 Capital held it's third portfolio meet up and the first of 2013.» Read more
EC1 Capital Portfolio December Meet Up
EC1 Capital held its second quarterly portfolio meetup on Dec 6th 2012. The event was kindly hosted by the folks at Housebites and we were all served delicious food from the Housbites Plus catering team, I can't wait till they come to my area!» Read more
EC1 Capital Doubles Stake In Retronaut.com
EC1 Capital has doubled its stake in Retronaut.com.» Read more
EC1 Capital Sponsors Autumn Hackathon 2012
EC1 Capital donated an iPad 3 as a prize for last weekend's Autumn Hackathon 2012.» Read more
EC1 Capital Open Office Hours
EC1 Capital will be hosting open office hours every other Friday at Ozone Coffee House in Leonard St. There will be a guest judge at every event. Invited companies will have a 15 min window with 5 mins for questions. You must be a web or mobile business. Read more here.» Read more