TVP follows a four stage process in evaluating investment opportunities. The speed at which our evaluation proceeds is strongly influenced by the preparation that potential investee companies have undertaken prior to seeking funding. The engagement process for a well organised 'investment ready' team is normally 3 months from first serious engagement to funding. TVP has made several investments more quickly when the circumstances allow. However, TVP sees raising venture capital as a major, long-term, strategic initiative for the companies it works with and believes that many aspects of the funding process simply cannot be accelerated. From the moment an investment application is first reviewed, the TVP team is making judgments about the quality of the business opportunity, the capabilities and attitudes of the management team, and the likelihood of being able to finalise a deal that makes sense for all parties.
Assessment
Initial selection is by a TVP Principal or Partner ("Deal Team") applying investment criteria, based on a review of written submissions and/or discussions with the company seeking investment. We reject many deals at this assessment stage with an email or telephone call. We aim to qualify deals quickly before either party allocates and uses significant resources.
If the Deal Team concludes the opportunity to be potentially suitable for investment, an Initial Deal Approval is prepared for presentation to the full TVP team.
Initial Deal Approval (IDA)
During the IDA meeting, the nature and stage of the opportunity is discussed and a consensus view determines whether to progress to the next stage and devote significant resources to evaluation of the opportunity. The TVP team provides input on major issues and concerns that the Deal Team will seek to address through the due diligence process.
Following IDA approval, the Deal Team agrees with the company the major items of due diligence work that will be required to satisfy the issues raised by the TVP team. The Deal Team will start to invest significant amounts of time and effort in a formal due diligence, and begin negotiating deal terms.
Term Sheet Deal Approval
A deal is next formally reviewed by the full TVP team once due diligence is progressing satisfactorily, and the outline of a transaction has been agreed. Team agreement is required to issue a Term Sheet which sets out the major commercial parameters of a proposed investment by TVP.
Once a Term Sheet has been approved by all parties, the Deal Team moves to complete due diligence, resolve any outstanding issues and to formally write up an investment proposal to present the investment case. Depending on the circumstances, relevant third party due diligence items such as an intellectual property review, accounting and legal review, or human capital review will be commenced.
Final Deal Approval
Final deal approval is based on a review of the investment proposal by the TVP team.
After final deal approval, TVP will complete legal documentation based on the Term Sheet, which will typically take around 2 to 3 weeks. After documentation is complete, TVP will make an "investment call" on its investors and dispatch funds within 10 working days.