The Club services are focused in the maximization of venture capital benefits by minimizing costs related to the correct identification and selection of projects, correct monitoring of investments and providing the best way out for the investor.
· Negotiation and formalization of investments
The Club provides project valuation services. Furthermore, in case of an agreement with the entrepreneur, links with specialized lawyers for the execution of legal and fiscal “Due-Diligence” will be created. Also, support in the elaboration of transaction contracts and the development of the fiscal strategy for investors will be provided.
Given that the Club and its’ members are eligible to acquire Opcion PYME, the linking services with Secretaria de Economia will be offered.
· Proyect selection
There are Club members searching for one or more specific niches to invest. This information, contained in the investor’s profile, is crossed checked with the projects’ characteristics in order to notify the investors that could be interested first.
· Detailed Analysis
Once the project passes through the discrimination process, the critical sections are analyzed more carefully. This analysis is used to validate the dynamic sections of the project, as well as the financial forecast and the assumptions used.
The feasibility of the projects is evaluated under operative and strategic requirements that have to be fulfilled with special emphasis in areas such as:
1. Management team
2. Entrepreneur background and experience
3. Founders’ commitment
4. Directive board and external consultants
5. Opportunity of target and exponential market
6. Intellectual property and entry barriers
7. Raw materials and services suppliers
8. Firm/concept/project achievements
9. Competition and risks
10. Product or service prize (supply and benefits)
11. Corporative finances (Human resources, fix assets, taxes, depreciation, area productivity)
12. Valuation and application of demanded resources
13. Sales plan and expansion towards new markets
14. Corporative structure and internal control plans
15. Financial evaluation
The intentions and economic capabilities of the entrepreneur are also evaluated during this stage, in order to create safe partnerships.
During this stage a lot of interaction between entrepreneurs and investors is required in order to avoid incomplete information problems and moral hazard. In the case that some information couldn’t be clarified, members could ask for advice from Innovateur’s consultants.
All of the processes mentioned above clearly define the way in which projects with big chances of success are selected for a successful investment.
· Preliminary Analysis
Once those feasible projects are identified, a test based on international methodologies is applied. This test is based on questions that help to measure and quantify variables such as involved people in the project and business environment. According to the numerical results of the test, the projects are graded. There is a positive relation between the grade obtained and the potential of success involved.
Just as a general standard, we look for those projects with a grade higher than 80%, with annual investment revenue of 30%, that allows investors an easy way out and shows clear patterns of innovation.
· Determination of initiatives and investment opportunities
The project identification is a task for all the members of the Club; nevertheless, the directive board of the club, which is selected by general consensus, is the one in charge of selecting the projects and investment proposals that represent a bigger opportunity for the members.
There are some agreements with other institutions that support entrepreneurs such as businesses incubators, non-government organizations and institutions that provide support during the early stages of businesses that want to promote their best projects as candidates for intelligent investments.
Furthermore, business proposals, business plans and executive reviews are received from Club members and web site visitors.
· Services for entrepreneurs
1. Promoting the business idea to a serious and professional group of investors.
2. Receive advice, tools, training and consultancy in order to develop a project of interest for investors.
3. Support in the development of optimal structures and guidelines for investment options, according to generally accepted standards for each productive niche.
· Additional advantages
1. Strategic alliances with government institutions, NGO’s and other, local or foreign private investors.
2. Fiscal and economic transparency that ensures requirements of every player involved.
3. Optimal management structures
4. Constant expansion of, national and international, alliances.
· Members exclusive
Innovateur has the professional infrastructure to organize private investors interested in the early or expansion stages of enterprises.
This could be reached by the mixture of services that ensure the success of investments.