The Investment Process

Everything you need to know about partnering with us, from reaching out to signing a term sheet.

How it works — the investment process.

This process is applicable to all of our funds, although is typically more streamlined for the 1V Venture Credit Fund.

Do you believe your company is a good fit to our investment mandate? (See above).

Our preference is for a warm introduction to be made through our network. You may know someone we’ve worked with before, otherwise the team is active at industry events - so come and say hello!

If this is not possible, please submit an application.

Our investment team manages a high volume of new opportunities and takes the process of assessing each and every one seriously.

We ask that you give us some time to respond (we aim to respond to all enquiries within two weeks).

There are many reasons why we may not progress your opportunity at any stage in our investment process. For example, it may not fit with our current investment mandate or be at the right stage of development.

Please don’t be disheartened! A partnership could be possible in the future.

There are many other sources of funding that may suit your company better. We will enter your details in our deal flow database and may contact you periodically for updates. Remember to keep us updated on your progress around major business milestones.

Assuming a positive outcome from the preliminary due diligence process, we will discuss the terms of a possible investment with you.

If we can agree high level terms, we will ask you to present to the members of our Investment Committee.

Assuming we agree terms, we now move into a more detailed due diligence process. We will provide you with a detailed list of the due diligence materials we require access to and will ask you to assemble them in a secure data room.

We will meet many times during this period and will require access to additional documents and information. Activities may include meeting with all the members of your team and visiting your premises, interviews with customers and partners, and discussions with other investors and potential acquirers of your business.

Our aim during this process is to independently confirm the information, claims, projections and assumptions you have provided to date.

In relation to debt financing (through the 1V Venture Credit Fund), this step is typically streamlined and usually results in a quicker investment than with equity financing.

Alternatively, you can reach out to us via email at entrepreneurs@one-ventures.com.

Please include the following information and, if you have one, your non-confidential pitch deck:

• Tell us what your company does

• Identify the market, value proposition and your competitive advantage

• Tell us about your progress to date, including how you have been funded

• Describe your business model

• State your revenue for the last financial year, and projected revenue for current financial year

• Tell us how you have been funded to date

• Indicate the capital you require, and how it will be used

• Tell us about your team

If we feel your opportunity is a good fit to the mandate for any of our Funds, we will schedule a meeting with one or more members of our investment team to learn about your company, the technology and product, and the leadership team. This first meeting may be via video conference or in person.

If our first meeting goes well, we will appoint a Deal Lead who will be your primary liaison with OneVentures and undertake some preliminary due diligence to understand more about your company. During this period, we will often ask for additional information and we may meet with you again. At this stage we will typically focus on:

• People - We look for quality, experienced management teams with ambition.

• Stage of growth - For healthcare companies, we look at companies at or near clinical stage. For technology companies, we take into account current and projected revenue. We assess use of funds, such as driving sales and marketing.

• Market - Does your product have strong market pull? Is the market attractive, in terms of size and access?

• Technology - Is the product competitive on a global scale? Does it fit within our scope? Can our team’s experience and knowledge be leveraged to commercialise this product?

• Development & regulatory path - Specifically for companies operating in the healthcare space, are the relevant development and regulatory paths known and clear?

• Reimbursement – For healthcare companies, a clear reimbursement strategy must be defined.

• IP - How strong is your IP and how well defined is your position?

• Business metrics – For technology companies, a sound understanding of business metrics and your customer. For example, what is the cost of customer acquisition? What is the lifetime value of the customer? What is the average revenue per user?

We will work with you to prepare a presentation to our Investment Committee, which meets approximately every 6 weeks. The format of this session is typically a 20-30 minute pitch from you followed by Q&A.

You are then asked to leave the meeting and the members of the Investment Committee will discuss the materials presented. We will simultaneously table our draft Term Sheet for the approval of the Investment Committee and assuming they approve the investment we will subsequently offer you a final term sheet for your consideration.

When we have satisfactorily completed the key confirmatory due diligence activities, we will commence drafting the legal documents to formalise our investment. Final due diligence will continue in parallel. During this period, we will each be represented by our own legal counsel who will be heavily involved.

When the due diligence process is completed and the documents are agreed and signed, we will transfer the first tranche of our investment to your company bank account.

Congratulations - our partnership has formally commenced!