ARN Management Consulting

Investment Process Timeline

"In the end, a vision without the ability to execute it is probably a hallucination." Steve Case

Investment Criteria Entrepreneurs seeking investment undergo a pre-screening process where we assess several key criteria to determine if the business aligns with our investment strategy. This process enables us to filter out less promising opportunities and concentrate on those with the highest potential for success.

We consider key criteria when evaluating investment opportunities, especially when seed rounds are over, the company is generating revenue, and a lead investor is on board. Understanding these criteria can help you position your business more effectively.

Growth Potential
We look for evidence that your company can scale effectively. This means having a clear growth strategy and demonstrating strong capabilities in acquiring and retaining customers. Solid market penetration and a deep understanding of your competitive landscape are crucial.

Revenue-Generating
Consistent and growing revenue streams strongly indicate market demand and a viable business model. We focus on key financial metrics like Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), Lifetime Value (LTV), and profit margins to assess your business’s health and long-term sustainability.

Lead Investor
Having a reputable lead investor brings significant credibility to the investment round. Their involvement can attract additional investors and validate your startup’s potential. Moreover, lead investors provide invaluable strategic support, mentorship, and industry connections, which can drive your startup’s growth and success.

By meeting these criteria, you can showcase your startup’s potential for continued growth and profitability, ensuring that our investment aligns with your and our goals. We’re excited to explore the possibilities and help you achieve your vision.

Investment Process We follow a clear investment process that ensures thorough evaluation and a smooth transition from pitching to securing investment .

Term Sheet

This document outlines the basic terms and conditions of the investment. Both parties negotiate to agree on valuation, investment amount, equity stake, and board composition.

Legal Documentation

Once the term sheet is agreed upon, lawyers draft the detailed legal documents, including the shareholders' agreement, stock purchase agreement, and other necessary contracts.

Signing Agreements

Both parties sign the agreements after reviewing and agreeing on the legal documents.

Fund Transfer

The investment funds are transferred to the entrepreneur's account after the signing.

On Going Support

Post-investment, we provide continuous support through mentorship, strategic guidance, and resources to help ensure the business's success.

Management Review

Meeting with the leadership team to understand their vision, experience, and strategy.

Entrepreneurs Seeking Investment Process Timeline

  • Day 1

    Apply for Investment

    To apply for investment with a pitch deck, entrepreneurs must create a compelling presentation that outlines their business idea, market opportunity, unique value proposition, and financial projections.

  • Day 7

    Pitch Evaluated

    The evaluation of your pitch involves assessing the clarity, viability, and scalability of the business idea, focusing on market potential, unique value proposition, financial projections, and the team's capabilities. Investors use this assessment to determine if the startup aligns with their investment strategy and has the potential for success.

  • Day 15

    Due Diligence

    Following the evaluation of your business cases and upon passing the initial assessment, entrepreneurs prepare for due diligence, during which detailed documentation and verification of all business aspects are conducted to confirm the startup's viability and investment potential.

  • Day 30

    Pitch-Day

    After evaluating your pitch deck and conducting due diligence, we schedule a pitch day for you to present your business idea in person. This will be an opportunity for you to deliver a compelling presentation and discuss securing the necessary funding with us.

  • Day 45-60

    Final Step

    The final step after a successful pitch and due diligence is signing the legal investment agreements. This formalizes the terms, triggers fund disbursement, and initiates the business relationship, allowing entrepreneurs to start implementing their plans with the secured investment.

Due Diligence & Investment Finalization

We identify and nurture early-stage businesses through a thorough due diligence process. This begins with assessing the business model, market potential, and team background. Next, we conduct a financial review, evaluating the company’s health through its statements and forecasts. We then perform a market analysis, examining the competitive landscape and growth potential while ensuring legal compliance. Our technology evaluation assesses innovation and feasibility. We also review the management team’s vision and strategy. Finally, we conduct a risk assessment, identifying potential challenges and developing mitigation strategies. Our comprehensive review enables us to make informed investment decisions and support the growth of early-stage companies.

  • Business Model: Understand the business model and revenue streams. Ensure it is sustainable and scalable.

  • Market Analysis: Evaluate the target market, competition, and growth potential. Assess the demand for the product or service.

  • Financial Health: Review financial statements, cash flow, and forecasts to ensure the business is financially stable and has growth potential.

  • Legal Compliance: Check for issues such as pending lawsuits or regulatory compliance.

  • Management Team: Assess the entrepreneur’s and management team’s experience, expertise, and track record.

  • Technology and Innovation: Evaluate the technology or product for innovation, scalability, and feasibility.

  • Customer Base: Understand the customer base and their loyalty. Check for customer satisfaction and retention rates.

  • Risk Assessment: Identify potential risks and develop strategies to mitigate them.

We mindfully streamline the process from due diligence to investment, knowing that many new entrepreneurs might not have all the necessary information. This makes the journey smoother and more accessible.

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