Investment Process

This is the flow of files sent by project leaders to the Business Angels network.

During this stage, the network facilitator team is responsible for carrying out a general pre-analysis (broad outline) of the Executive Summary. This analysis allows to check whether the project is in line with the positioning of the network and if it corresponds to the investment criteria of the members (geographical location, businesssector, amounts sought, growth potential, commercial developmentof the project, etc.)

Once the first filter of the preselection has been passed, the project leader is invited to presenthis project orally to the Business Angels members of the network. The presentation lastsbetween 15 and 45 minutes depending on the structure and isfollowed by a question / answer sessionwith the entrepreneur.

This stageis also called Elevator Pitch.

This phase, more commonly called “instruction”, consists of analyzing the selected projects in more depth. The instructors, generally Business Angels who are active in the network’s life (or a member of the investment committee for the SIBA) get in touch directly with the project leaders and organize the first meetings.

These working meetings will allow to assessthe details of the Business Plan, verify the veracity of the information (Due Diligence), study the personality of the project leader and his entrepreneurial profile.

During the closing stage, Business Angels who wish to invest and get involved in the project negotiate / validate with the entrepreneur the valuation of the company at the time of their entry into the capital and agree on the legal clauses that will be included in the shareholders’ agreement* before finalizing the investment transaction.

* Shareholders’ agreement: Legal contract that governs the relations and organization between various shareholders within a company.

The entrepreneur must update the Business Angels by sending detailed reports, the frequency of which varies depending on the nature and maturity of the project. For their part, Business Angels must make themselves available to the entrepreneur to assistand supporthim when necessary.

This is the exit of Business Angels from the company’scapital. The exit can take place when the business is bought by another company (industrial exit), by a stock market contribution, by the intervention of venture capitalists, whose funds contributed then partially used to buy the shares of Business Angels (cash out), or through an LBO…