The Investment Process
DCIG encourages prospective portfolio companies that fit within the desired guidelines to submit an application through the GUST PLATFORM which the group utilizes to aid in sourcing and managing its deal flow and portfolio companies. A brief outline of the investment process as well as some of the documents that should be included are listed below.
If the Executive Summary is endorsed by a member, then a brief meeting will be arranged between the company and the Screening Committee. Based on that presentation and any follow-up preliminary due diligence, the company may be invited to present at one of the membership meetings.
Presentation to Members
The general structure of the entrepreneur presentations usually consists of an initial 15-20 minute company overview/pitch, followed by a time of Q&A. Topics covered in both the initial and Q&A portions of the presentation often include: management introductions, investment terms, and exit strategy, company overview, product/service, industry overview, competitor analysis, marketing plan, historical performance, financial projections, requested capital, and expected usage of that capital.
At the conclusion of the presentation, the entrepreneur is excused and the members privately discuss the proposal.
Due Diligence and the Deal Manager
Due diligence includes, but is not limited to, review and analysis of the applying company’s: Business Model, Target Market, Strategy, Technology, Management Team, Existing Advisors and Current Investors, Financial Status, Projections, Term Sheet and Exit Scenarios.
Post Investment Follow-Up
Applications Should Include
1. Executive Summary
The two-to-four-page Executive Summary of the business proposal should include the following information:
- Industry description
- Business strategy
- Overview of possible competition within given industry
- Description of possible marketing schemes
- Proposed exit strategy for investors
- Website domain name
- Contact information for key people, including email and telephone
- Background information about key people (such as pertinent former employers, experience, etc.)
- Current ownership structure
- Pre-money valuation
- Amount sought in Current round
- Pro forma fully-diluted ownership structure assuming successful capital raise
- Monthly burn (revenue less expenses)
- Projected use of proceeds
- Form of investment (preferred stock, convertible debt, etc.)
- Historical (3 years back) income statement
- Pro forma (3 – 5 years forward) income statement
2. Business Plan
3. Financial Statements
- Please include projections for 3-5 years.
Prospective companies should apply to Delaware Crossing through the Dealum web-based system by clicking below.