Investment process

Despite inevitable variance between deals, the GEIF Ventures’ investment process will typically include the following stages:

SMEs seeking external funds applies to Great Eastern Investment Forum (GEIF) to present at one of the Presentation Days (other methods of introduction can be offered). Following an application, GEIF will collect information about the SME and its investment proposal and decide whether to offer an introduction to angels.

Following the presentation, subject to GEIF Business Angel(s) agreeing to invest at least £25k, the Company applies for a co-investment from GEIFV. The application pack should include information about committed capital and a business plan, with detailed financial forecasts clearly indicating cash flows and sources of future external funding if they are necessary.

Terms to be agreed with the business angel(s) prior to contacting GEIFV must include:

• Amount and investment instrument
• Valuation (at least indicative)
• The extent of the Business Angels’ management involvement

GEIFV reviews the proposal to check whether prospective Investee qualifies the investment criteria, and collects further information about the business of the company, which in the majority of cases will involve a meeting with the company and some background research. GEIFV Manager is also likely to contact prospective investors to discuss their intentions, as well as preferences for terms of investment.

GEIFV Manager will then present the proposition, possible terms of investment and his investment overview to GEIFV's Investment Board (the Board). The Board, applying the investment criteria and their discretion, will then make a primary decision whether GEIFV would be likely to join the investment round, subject to satisfactory due diligence.

A set of detailed investment terms (a “Term Sheet”) will be finalised by the syndicate of angels and GEIFV, primarily based on the terms initially agreed between the business angels and the future investee, if a term sheet is not already issued by the business angels. GEIFV Manager will co-ordinate the due diligence with the other investors (utilising existing due diligence by business angels when possible). Lawyers will also be instructed to draw up the legal documentation (if necessary), as per the agreed Term Sheet. This process to completion usually takes between two weeks and two months.

GEIFV Manager will then present the results of due diligence and finalised terms to the Investment Board for it to come to the final investment decision.

Funds are invested simultaneously with other investors at a completion meeting held at the solicitor's offices. In exceptional circumstance when not possible otherwise for practical reasons, GEIFV may invest up to 2 months after the business angels.