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Below are a few Frequently Asked Questions.
How
does MVP support company building?
Our contributions
in addition to cash include:
- Strategies
for structuring and growing the business
- Effective
communication and advocacy among key decision makers within our
target search industries
- Executive
recruitment and employee development
- Market,
technical and financial due diligence
- Public relations
and press releases
- Assist in
accessing alternative funding sources e.g. Federal grants
MVP works closely
with entrepreneurs towards our common goal of building world-class
companies. We are tenacious investors, and will make available every
resource at our disposal to ensure success.
What is MVP's review process?
After reviewing
our investment strategy and criteria,
and submitting an application
for review, successful applicants will be contacted
in order to schedule a phone interview and/or an initial meeting.
Those companies we feel do not meet our investment criteria or current
portfolio objectives will receive a courtesy email within approximately
two weeks. (This applies only to companies that submit using the
application form)
If we are still
interested after meeting with the management team, we will require
them to complete a detailed questionnaire that presents critical
information from an investor's perspective. Only then is the more
formal diligence process started.
What will I be asked to make available
(if I haven't already) for your diligence process, and how long
does it typically take?
Extensive demonstration
of technology
Customer references including face-to-face meetings
Capitalization Table
Option Plan
Option Agreements
Financial Statements
Budget (12-24 month / detailed use of investment)
Pro forma model
Bylaws
Certificate of Incorporation
Employment Agreements
Non-compete Agreements
Confidentiality Agreements
Customer contracts
Equipment leases
Office leases
Insurance policies
Bank statements
Tax returns
Resumes
Personal references
Intellectual Property (patent filings, copyrights, know-how, etc.)
*Additional
information may be required
Depending on
the specific circumstances, the diligence process can be as short
as a few weeks to as long as a year or more before we are comfortable
with making an investment. We do not hesitate when we feel strongly
about making a timely investment. In any case, we try to keep companies
informed of our progress so that they can address any concerns that
we might have along the way.
Can I just send my business plan or
executive summary instead of filling out the application?
No. Our application form has proven to be a very effective screening tool that greatly enhances the efficiency of our review process. Unsolicited business plans will not receive a response unless accompanied by a completed application form.
Where does MVP prospect?
We serve the
entire mid-Atlantic region from New York to North Carolina, but
prefer to invest primarily in Northern Virginia, Maryland, and DC
where we have deep local networks and can provide the most hands
on assistance. Monumental Venture Partners Fund II will feature
an expanded search area, including the entire U.S. and abroad. Investments
made outside of our primary search area however, will probably constitute
only a small percentage of the portfolio, and will likely be strategic
in nature.
Will MVP II be making Life Science Investments?
No. Monumental Venture Partners Fund II will focus exclusively on investments opportunities in IT and telecommunications, with a particular focus on security, enterprise software, advanced communications networks and network support technologies.
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November 01, 2006
