Stage 1: Executive Summary Assessment
The first step in the process is to submit a one to two page executive summary to esummary@narravc.com. A recommendation/referral will greatly aid our initial assessment. Cold calls seldom work but they are welcome.
In the executive summary, you are expected to explain the following:
- Value proposition of your product/service.
- Pain point your are trying to address with an ideally unique and/or differentiable solution.
- Market size and growth
- Company information
- Credentials of the Team.
- Summary of financial projections
You should include in your summary, complete contact information of your company and/or its designated contact person.
After submission, please wait for our response. If there is no feedback after one to two weeks, it may mean the ff:
- Your proposal does not fall within Narra’s Investment Roadmap.
- Your executive summary is still being reviewed.
You are however, allowed to follow-up on your submissions after the mentioned time frame.
Stage 2: Presentation Meeting
If we find executive summary interesting, we will request for a meeting.
Please obey 10/20/30 rule in a VC pitch:
- 10 - Approximately 10 slides
- 20 - You should be able to give a presentations in 20 minutes
- 30 - smallest font should be 30.
You can include backup slides to aid in the discussions.
Stage 3: Preliminary Assessment
Narra will give an indication of its level of interest from the depth of information it will request from the entrepreneurs. Follow-on meetings are also good signs of our interest.
If Narra doesn’t act on your proposal, all that means is that the investment does not fit Narra’s Criteria for investment. It might still be a good business proposal.
Narra can’t guarantee this but we will usually try to refer and assist good entrepreneurs to others that might assist your Companies, with us or without us.
Stage 4: Formal Due Diligence
If Narra decides to begin its formal due diligence, we will ask for more detailed information on your business proposal.
These may include the following:
- Differentiator
- More detailed description of Proprietary Solution. Patents etc.
- Solutions to building competitive barriers to entry.
- Market Sizing
- Financial Models
- Resumes of Core Team, References, Interviews
- Operations Plan
- Capitalization Table
- Company’s candid assessment of competitive landscape worldwide
- Others
* Most of the time we can’t sign NDA’s. Our firm however, forces our staff to sign NDA’s regarding information revealed to us and we enforce a very strict code of conduct within our firm. However, proposing companies will most of the time have to rely on our trustworthiness in deciding on the level of information they will reveal.
Stage 5: Approval and Offer
At this stage, the valuation of the company together with the terms and conditions of the prospective investment will be negotiated. The output of which is a term sheet. The term sheet is not a definitive and binding document. However, it outlines the major terms of the deal. If the term sheet is acceptable, detailed legal documents will be drafted based on it.
Stage 6: Completion
Soon after the signing of legal documents, cash will be invested into your company in exchange for the agreed shares.
Stage 7: Post-investment monitoring
As typical in any private equity investment, Narra will seek to actively monitor its investee companies periodically through the following:
- Board Meetings (either as an observer or a board member)
- Monthly Status Reports on:
- R&D
- Manufacturing
- Marketing & Sales
- Financials
- Other Critical Matters
- In cases, where needed and appropriate, Narra Investment professionals can work as temporary executives in firms that might need their help. Or serve in executive committees, audit, HR or finance committees.
Stage 8: Exit
As fund managers, we have the responsibility to yield significant capital returns to our limited partners through the sale of our shares. This is typically through IPOs and M&As within 4 to 7 years. The implementation of an exit strategy is key for all companies we invest in.
