Our Investment Process
Hi, we’re Venture Builders. It’s great to be exploring a potential future together where we might help you build a venture that makes a great impact.
We are a collective of good agent investors with proven startup and professional success.
We believe that investing in early stage companies should be a commitment of capital and contribution.
Together with our network we have a track record in making good decisions in early stage companies. Good decisions build better ventures; from matching the right investors to the right startups to help navigate the challenges of early stage growth.
Here’s where we go from here.
(circa 3 days)
The Meet and Greet
If you’re reading this, you may have already met a couple of the Venture Builders who will have explored where you are at and asked you for some initial information about your business, like your pitch deck and financial projections.
From here, a high level summary and your documents will be shared with the VB team confidentially and a decision made on whether to proceed.
(circa 1-2 weeks)
Initial Due Diligence
If we’ve hit it off and your business is aligned with our investment thesis, we will then proceed into initial due diligence. You’ll likely have one key Venture Builder as your point person to chaperone you through the process.
Here is a list of what you will need to provide us during initial due diligence.
- Pitch deck, including clear articulation of your goals, milestones and plan to deliver.
- Product roadmap (if applicable)
- Marketing plan
- Customer contacts for interviews
- Introduction to existing investors (if requested)
- Access to other team members
- Cap table
- Financial model with historical cashflow
(circa 2-4 weeks)
The Deep Dive
You’ll be invited to attend one of our Founder Fridays.
This is an opportunity for all Venture Builders to hear about your business, from the horse’s mouth (please don’t bring any horses). We will have reviewed your documents so a quick 10 min walk through your deck and then Q&A is the best format for us.
At this stage, we may also have investors outside Venture Builders who we think are a good fit for you. We will discuss this with you and get your permission before we discuss or share any information.
We aim for 1-1.5 hours for this session.
(circa 2 weeks)
Detailed Due Diligence
After step three, the Venture Builders team will make a decision on intention to invest, the level of investment and whether any other external investors are interested (if this has been an agreed part of the process to date). We will then go into detailed due diligence.
Here is a list of what you will need to provide us during detailed due diligence.
- Produce term sheet (VB), or share any other active term sheet if one already agreed.
- Shareholders agreement
- Subscription agreement
- Cap Table confirmed via ASIC Extract
- ESOP in place and any options issued (including arrangements with accelerators)
- Past financial records
- Bank statements
- BAS statements
- Co-investor details
- ASIC details (company and directors)
- IP ownership – Employment agreements, IP assignment agreements and relevant Patents
- Any licensing Agreements in place
- Material contracts if applicable (includes any loans, liabilities, key client contracts)
(ideally 1-2 weeks)
The Shorts and The Longs
This is not about what you’re wearing to the beach this weekend. This is the fun part of kicking off our relationship.
We collaborate with you to get to a win/ win for both parties on both the term sheet and into the long form shareholders and subscription agreements.
Our values of transparency, honesty and founder-as-people will help us get to a fair deal. We will call it as it is.
We will expect to see some good protections in here for investors but also flexibility for founders to thrive and be rewarded. We work off very standard term sheets to keep the process simple.
(’til exit do us part)
Investing in Venture Building
Here we will execute the agreements and transfer the cash. Boom!
For us, this is the start of the journey really.
You’ll have 1-2 of the Venture Builders team stay in regular contact with you and draw on the expertise of the Venture Builders team, as and when you need it.
We may have requested a board seat or observer role on board in the negotiations so we can play an active role. We are here to help. We have broad skills and great networks we have built from being smart and decent people.
We’ll be super excited to see how your business grows.
Go forth and build…
Ready to Start Building?
Shoot us an email, we’d love to hear from you!