ROI Tactics adds value throughout the investment process. This is crucial because entrepreneurs are increasingly selecting venture capital partners who can provide seasoned management expertise and guidance.
Typical Venture Investment Cycle
STAGE 1 · Deal Origination
Sources of deals include ROI Tactics portfolio companies, entrepreneurs, academic institutions, research organizations, other venture firms, attorneys, investment bankers, business associates, search firms, private investors and limited partners.
STAGE 2 · Due Diligence
The due diligence process includes business plan review, presentation by management to ROI Tactics, site visits, market and competitive analysis, business model and financial analysis, management team reference checks, corporate review including credit checks as well as an examination of corporate structure and legal issues.
STAGE 3 · Deal Structuring
Deal structuring includes negotiating transaction terms, establishing anticipated capital needs, finding sources of financing, as well as addressing accounting, tax and legal issues.
STAGE 4 · Management of the Investments
Responsibilities at this stage include providing strategic guidance, working with executive search firms to recruit senior management if necessary, establishing banking and credit relationships, giving advice on strategy and marketing, as well as providing board representation and/or leadership.
STAGE 5 · Liquidation and Exit
The final stage of the cycle involves establishing investment banking relationships, identifying appropriate merger or sale candidates, facilitating "road shows" through the selected underwriters, and providing assistance during investor due diligence.
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