Early-stage Investors’ Services

15. September 2018

The seed and early-stage fundraising process is known for offering little transparency to founders. Most investments take place through personal recommendations, and even though we consider trust and reliability of the founders (which can often take months or years to assess) one of the most success factors in investments, we’re developing solutions to overcome these problems, and also consulting with different experts, to analyse red flags in different areas to recognise the potential success size or failure rate at the onset.

These services are ideal for seed investors who have little internal resources or no structured methods to screen and select investments, but they can also be accessed by larger investors in case of larger transaction and need for certified reports.

The 10 hours Deal Flow Support is a customisable service aimed at setting up the online deal flow and information submission, setting up a structured approach to screening investments, recording information and setting up methods to quickly identify the right opportunities. This can be outsourced on a regular basis or only during a set-up process. It’s recommended to purchase the first batch of hours online that are covered by the Terms and Conditions, and then subsequently close a contract when the amount of regular hours needed is known. We can also bring significant value in screening projects, offering feedback to founders to benefit the fund’s brand and to set up initial interviews before passing on the best investments to the investor. It’s also possible to set up a form to forward investment opportunities directly to us, with the understanding that all information and files will be passed on in a joint email submission.

The Investment & Exit Analysis can be linked directly to the deal flow management or purchased separately. For any information you have available about the investment opportunity, we will analyse documents, estimate a quick valuation based on an expected exit and create an easy-to-read document that explains different sides of the investment opportunity. It is ideal for angel and seed investments when the invested amount is limited (<$500k) and replaces and expensive due diligence when the process is simplified for pre-revenue companies.

However, a proper Financial and Commercial Due Diligence for any investment over $1m is recommended. This includes a comprehensive overview to recognise all associated risks and create financial projections for the company. Available both for startups and growth-stage companies, with a recommended on-site visit for later-stage companies. In cases when the reliability of an untested technology is key to the investment’s success, part of the due diligence will be outsourced to a suitable technology expert.

Portfolio Valuation , which can be carried out also for just one company, is ideal for reporting purposes and for carrying out valuations of new opportunities. We don’t make any portfolio composition recommendation, instead only value single investments. The content of the report might be reduced when no access to the target company is possible or when the information submitted has gaps. In this case, we use typical VC valuation methods and also analyse the current market conditions.

After a valuation, or also in cases when an upcoming or recent investment needs monitoring, the 10 hours investment monitoring is highly recommended. Most early-stage startups do not have a CFO in place and end up overspending or mismanaging the funds received, whereas we can add an additional layer of assurance by being in contact with the company and regularly budgeting for the use of the available funds depending on the strategy. This is a bespoke service that can be adapted the investors’ needs and characteristics of the company. When the company metrics are known, we can also set up an online form to collect specific metrics and figures from the portfolio companies, to ensure consistent investor reporting and ability to update valuations with the submitted data. Most investors updates do not include all the necessary information to really assess the performance of the company, and in this case we can also set up templates to make the communication smoother.

Any previous document created by Valithea can be edited through the 1-Week Retainer , that allows up to 2 recent documents to be updated during a maximum 1 week availability, without hours limits. The 1-week retainer would usually result in savings compared to purchasing hour-based consulting, and encourages better planning and the collection of all information before the service is purchased.

Any additional consulting not included above or general document reviews, updates, meetings and consultations fall under the Consulting Session.

Valithea’s services have a variety of add-on options. We recommend ordering any simple service online in order to agree to the Terms and Conditions, and to subsequently select ‘Bank Account Payment’ in the checkout option. You will then receive an invoice with payment details, which can also be issued in your currency if you provide the information. Advanced and regular services (over $3k) would preferably be closed though a separate online contract. A personalised contract is available for shorter services as well, but in this case an additional fee is charged.

Any new client can get in contact for an Introductory Call to review service options, or set up a meeting when in the same location.