1. Application
Five Stages Before Investment
01 Investment Engagement
Initial Communication: Begin preliminary discussions with potential investment targets to understand their business model and market positioning.
Business Plan Review: Evaluate the business plan, including market analysis, products or services, competitive strategy, and financial projections.
Initial Screening: Decide whether to proceed further based on the initial information.
02 Pre-Investment KPIs
Agree on KPIs: Discuss and set key performance indicators (KPIs) with the investment target, which will be used to assess project progress and potential success.
Achieve Baseline KPIs: Ensure that the investment target can meet these baseline KPIs as a prerequisite for further investment.
03 Due Diligence
Begin Due Diligence: Conduct comprehensive due diligence on the investment target, covering financial, legal, and operational aspects.
Team Evaluation: Assess the abilities and experience of the management team, along with their background and reputation.
Value Assessment: Evaluate the investment target's value, including market potential, competitive advantage, and financial status.
Investment Method: Determine the investment amount, method (such as equity or debt), and terms.
04 Interactive Investment Confirmation
Confirm Investment Intent: Based on due diligence results, confirm the intent to invest.
Refine KPIs: Further define and agree on KPIs with the investment target to ensure a mutual understanding of goals and expectations.
Negotiate Terms: Negotiate detailed investment terms, including valuation, equity share, and exit mechanisms.
05 Contract and Partnership
Draft Contract: Prepare the investment contract, specifying the rights and obligations of both parties.
Legal Review: Have a legal advisor review the contract terms to ensure legality and enforceability.
Signing: Both parties sign the investment contract.
Fund Transfer: Disburse the first installment according to the contract terms, marking the beginning of the investment partnership.
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