Investors Deal Flow Analysis

15. September 2018

 

Valithea offers fully flexible virtual or on-site analytical and consulting services for the researhc & analysis of early-stage investments.

 

The Deal Flow Analysis is aimed at setting up a structured approach to screening investments and can include:

  • On-site exploration of local startup ecosystem for 1-3 months
  • Deep dive sector reports
  • Consulting on suitable investment opportunities based on investment readiness/ Set up of advanced submission form
  • Investment Target Research and Benchmarking
  • Screening of opportunities to be reviewed further
  • Investment & Exit Valuation
  • Pre-selection interview with founders

 

After a valuation, or also in cases when an upcoming or recent investment needs monitoring, the Investment Monitoring is recommended. Most early-stage startups do not have a CFO in place and end up overspending or mismanaging the funds received, whereas we can add an additional layer of assurance by being in contact with the company and regularly budgeting for the use of the available funds depending on the strategy. This is a bespoke service that can be adapted the investors’ needs and characteristics of the company. When the company metrics are known, we can also set up an online form to collect specific metrics and figures from the portfolio companies, to ensure consistent investor reporting and ability to update valuations with the submitted data. Most investors updates do not include all the necessary information to really assess the performance of the company, and in this case we can also set up templates to make the communication smoother. To summarise, the service includes:

  • Valuation (Excel + Estimate Valuation & Analysis Report) of Portfolio Companies
  • New Investment Budgeting/ Monitoring of quarterly investment use
  • Setting of useful company-specific metrics/ Set up of automatic update submission and investor relations report templates
  • Collection of quartely updates/ Quarterly financial & valuation files updates
  • Assessment of quarterly market conditions and reliability of new information submitted

 

 

The Investment & Exit Analysis can be linked directly to the deal flow management or purchased separately. For any information you have available about the investment opportunity, we will analyse documents, estimate a quick valuation based on an expected exit and create an easy-to-read document that explains different sides of the investment opportunity. It is ideal for angel and seed investments when the invested amount is limited (<$500k) and replaces ad expensive due diligence when the process is simplified for pre-revenue companies.

 

 

 

However, a proper Financial and Commercial Due Diligence for any investment over $1m is recommended. This includes a comprehensive overview to recognise all associated risks and create financial projections for the company. Available for both for startups and growth-stage companies, with a recommended on-site visit for later-stage companies. In cases when the reliability of an untested technology is key to the investment’s success, part of the due diligence will be outsourced to a suitable technology expert.