CenTech

Új Magyarország Kockázati Tőkealap

Investment Process

1. Forwarding brief summary teaser (1 or 2 pages) and/or filling up online registration sheet

2. If on the evidence of the teaser we see possibility to cooperate then we will require business and financial plans for at least 3 years (simultaneously to concluding secrecy agreement, if necessary). Under the business plan we primary look for below information: :

  •  describing the current activities, the business model and the market
  •  financial statements of the past: financial figures for the former 2 years + interim figures and estimates for the current year (if extraordinary items were included, then related descriptions and elimination)
  •  presentation of the Management
  •  strategic plan, related revenue and expenditure plans, assumptions
  •  financial plans for the upcoming 3 to 5 years (P&L Statement, Balance Sheet and Cash Flow)
  • detailed appropriation plan for the funds invested (scenarios of alternative source requirements, if any)

3. Based on the business plan and personal reviewing we start elaborating an indicative offer. The indicative offer does not constitute commitment to the investment, albeit in virtue of the data provided in advance it stipulates the principal conditions and guidelines of the future cooperation (such as resource amount, nature of resource, rate of business quota handed over, structure of transaction, conditions of joint steering, earn-out, options, exclusivity, …).

4. In the event of approval by the Investment Committee, after signing the indicative offer we perform a due diligence with the target enterprise (legal, financial, and technical/technological audit if required). Meantime preparation of legal documents required for the investment is started..

5. On the basis of the due diligence the investment is presented to the board of directors of the Fund Manager for approval (investment decision).

6. If approved, the legal documents are finalized and signed, and the capital can be disbursed.

 

From the first meeting up until the disbursement minimum 3-month cooperation is usually required. The decision regarding the investment is taken by the Investment Committee of the venture fund(s) after preparations are done for the agreement.

 

The investment process:

  1.  Brief written summary (without confidential data)
  2.  Secrecy Agreement
  3.  Detailed business plan for 3 years, with financial appendix
  4.  Preliminary investment agreement (term sheet)
  5.  Due diligence
  6.  Preliminary investment decision
  7.  Contract/legal documentation
  8.  Investment decision
  9.  Disbursement(s)