Intern Guide:Business Plan Review & Management

May 2015Confidential

Your Mission

1. “Unpack” and assess viability of incoming business plans1. Spend about 2 hours on each plan -- depending on your

understanding of the market/technology

1. Summarize findings in TrackVia (deal-flow database)1. Concept Summary – an unbiased summary of investment opportunity

1. What is the entrepreneur excited about?

2. What are the general terms of the deal?

2. Assessment – biased evaluation of plan considering G-51’s criteria

2. Articulate findings to G-51 partners for decision1. Nataysha will schedule all Deal Review Meetings

Business Plan Review Process

Interns involved in Steps 1-41. Plan Submission

2. Initial Review 100%

3. Follow-up Call 50%

4. Meeting/Visit 25%

5. Preliminary Due Diligence 5%

6. Term Sheet 3%

7. Final Due Diligence 2%

8. Funding 1%

Characteristics of Good G-51 Business Plans

Length/Style: Ultimately unimportant Business plans are constantly evolving; don’t expect a finished product

Fit with G-51’s portfolio and investment goals Software, Hardware, Internet Services, Cleantech

Realistic fund raising expectations/requirements Remember G-51 is “seed-stage”

Strong, experienced team Coherent go-to-market strategy – defined sales channel Market validation

Market size ~$1B What has the company done to confirm demand for its product?

Any existing revenue?

Capital efficient – our investment dollar goes far

Evaluation & Presentation

Quick facts to have at your fingertips: Company location $ Amount raising Source of business plan (referral, unsolicited) Current stage of company (beta, pre-revenue, lighthouse customer)

Additional evaluation points: Total available market Management team experience (within target industry & venture exp.) Go to market strategy (channel partners, target verticals) Status of intellectual property Capital efficiency (what does our money buy?) Competition Potential exits

Managing Plans

Deal Review is mandatory Every morsel of data must be recorded in TrackVia

Serves as the single source for the status of every plan Attempt to be as complete as possible when filling out an entry “Status” bar updating is crucial

In Review – Plan has been assigned to a Venture Scholar Ready for Deal Flow Meeting – review is complete 2nd Review – in process of answering questions from deal flow meeting Pass – no more interest from G-51 Pass-contact us with updates – there is some interest but G-51 isn’t fully

convinced; keep us on your radar as things progress Pass-but still on the radar – substantial interest; G-51 will keep plan in pipeline

and actively follow up Invite for a meeting – self explanatory

Contacting Companies

You will often need to contact a company to better understand the business opportunity This is especially true of companies you find promising

Business plans often arrive incomplete No financials, unclear marketing strategy and IP, etc.

Plans might also be a few months old Might need to get a progress update (a good opportunity to find out if

they’ve met their stated goals)

Other times, you simply might not understand a plan If all else fails, write or call the company to find out what they do

Since you are not in the office full-time, email works best At the end of the deal review meeting you will be responsible

to contact the entrepreneur and let them know what happened

Questions

Nataysha - nataysha@g51.com Technical (database, email), process, administrative

Lauranne - lauranne@g51.com Finance, G-51 strategy/history, VC industry, technical

Rudy – rudy@g51.com G-51 strategy/history, VC industry, technical