Due Diligence Avenue:It’s a 2-way street

Presented by Christine L. MendonçaNOEW 2016

March 16, 2016

Overview Shore to Shore Advisory Investor Readiness Due Diligence on Investors – it’s a 2-way street

Firm OverviewShore to Shore Advisory is an impact investment advisory firm, working exclusively with clients who want to put financial return seeking capital to work in positively changing the world. We develop investment strategies, analyze markets for both risk and readiness, build investment pipelines, vet potential options, and manage investments.  We believe there is ample opportunity to make financial returns while having a resilient impact on the communities in which our portfolio companies operate.  

Investor Readiness Do you really need to raise money from outside investors? What type of terms are you willing to offer? Required Documents:

Executive Summary Business Plan Detailed Financial Projections Pitch Deck (Presentation for a crowd) Pitch Deck (1-on-1 meeting)

Due Diligence on Investors Who is the investor? (Google, Twitter, etc. stalk them) Are they investing their own capital or do they have limited

partners who they are investing on behalf of? Who are their limited partners? How many are there? Are any

public pensions?If they have a fund, is this their 1st?

Due Diligence on InvestorsWhere are they in the current fund’s investment life cycle? How many investments do they typically make in a year? What do they invest in? Do you fit their criteria? What is their investment process? Ask them to be as detailed as

possible.

Due Diligence in InvestorsDo they have any non-negotiable? Who do they invest with? How long does it usually take for them to make an investment

decision? How large is their team? Who is on their team? Who have they

invested in already?

Due Diligence on InvestorsDo you have any mentors, peers, etc., that have a relationship

with the investors? Ask for their opinions. Do you know any of the founders in the portfolio already? (Talk to

them) Ask to be introduced to a few of the portfolio companies that you

don’t know.

Due Diligence on InvestorsSeek out an equal number on your own. You want to know the

good, the bad, and the ugly. How active are they? How do they handle good and bad news? What level of interaction do they have with their portfolio

companies? What’s happened to the companies in their portfolio?

Due Diligence on Investors What investors typically invest in their portfolio companies in a

follow on round? How many companies in their portfolio have they invested in on

subsequent rounds? What type of reporting do they expect from you post investment?

Due Diligence on Investors How often will you meet in person? What are their governance expectations? Do they take board seats? Do they align with the your mission and vision?Have questions for them beyond these for them.

Thank you Follow on Twitter @chrislmendonca www.s2sadvisory.com