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Please note that as a general rule, no meetings with applicants are held
until Stage 2 of the process outlined below.
Momentum's
investment process, which is described in detail below, typically results
in high quality applications receiving funding within 12-14 weeks. Please
note that estimated timing provides an indication only and that actual
timing may differ depending on a range of factors, the most important
being the quality of the business opportunity itself.
Stage
1: Funding application
All applications for funding must be submitted on Momentum's Investment
Application Form. The Form allows
a company to explain its business strategy and its attractiveness as a
venture capital investment.
Estimated duration: 5 business days
Stage 2: Preliminary
Assessment
An applicant who passes the initial screening process will be invited
to submit a business plan and other supporting information. Telephone
and face-to-face discussions with the applicant may then be held. There
may also be initial discussions with key technologists, customers, industry
experts, etc.
Applicants will
be advised if they succeed in passing the Preliminary Assessment. At the
same time, they will be sent a pro forma Term Sheet, which sets out a
summary of the terms and conditions under which Momentum would be prepared
to invest in the applicant company.
Estimated
duration: 15 business days
Stage 3: Term Sheet
Before Momentum invests additional time to assessing the proposed investment,
the applicant needs to sign and return the Term Sheet to indicate that
they accept the proposed investment terms.
The Term Sheet
also gives Momentum an exclusive period, typically 60 days, to finalise
its due diligence and investment procedures.
Estimated duration: 5 business days
Stage 4: Due Diligence
Due diligence is the process of verifying the applicant's claims about
its technology, market potential, financial projections, etc. It is an
intensive process in which the applicant supplies extensive additional
information. There are also many detailed discussions with company personnel,
customers, industry observers, etc. Specialist consultants may be used
to assess some key issues if appropriate.
If the due diligence
process confirms the attractiveness of the investment, Momentum will prepare
an investment recommendation for its Investment Committee and Board.
The terms and
conditions of the investment will be in line with the Term Sheet unless
the due diligence process has led to some agreed variations to these terms
and conditions.
Estimated duration: 30 business days
Stage 5: Investment
Committee approval
The Investment Committee is an internal quality control process that ensures
that all investment procedures and professional standards have been followed
and all key issues addressed. The Investment Committee meets regularly
every two weeks.
Estimated duration: First available Investment Committee
Meeting
Stage 6: Board approval
The Board of the Momentum fund is formally responsible for all investments
made by the fund. The Board meets monthly and receives prior briefing
on any proposed investment before receiving a formal investment recommendation.
Applicants will generally have no contact with the Board.
Estimated duration: First available Board Meeting
Stage
7 : Completion
Once the investment is approved
by the Board:
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