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PROCESS
At Focus Ventures, we strive to respond promptly and efficiently to
investment opportunities. Because of our well-defined investment
criteria, it's usually clear to us early on whether or not an
investment is right for our portfolio. This enables us to provide a
quick response to prospective investments and to focus our due
diligence process on only a few companies at a time.
Our process typically begins when the firm receives a business plan
through our network of investors and entrepreneurs. Based on our
review of the plan, one or two of us may schedule an initial meeting
with company executives. We then present the opportunity to our
investment team, seeking to gauge support early in the process. Our
goal is to optimize our own time as well as yours, to make the best
investment decisions while minimizing disruption to company
founders/executives.
If the group opts to proceed with evaluating an opportunity, we
assign a two- to three-person team to conduct due diligence on the
company and its products. We meet with each member of the senior
management team, typically on-site. We also rely heavily on
conversations with customers to assess the company’s product - both
strengths and weaknesses. Research analysts and industry executives
are also an important source of market intelligence for us, as well
as discussions with the company’s prior venture capital backers.
Upon successful completion of our due diligence, we invite the CEO
to make a management presentation to our entire team. Immediately
following, we make a final consensus decision.
We know that time is of the essence. Our process is designed to be
very thorough while facilitating quick decision-making and
responsiveness to our network of entrepreneurs and venture capital
firms.
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