Step 2 - Investment Analysis
This stage involves the analysis of the Team, the Technology, and the Market Opportunity of the venture in a collaborative way where inputs to this process is obtained from both parties. It is the period when the our team works with you to delve deeply into your business model, talk to your references, customers and competitors, and investigate all dimensions of the business, financial, intellectual property and legal aspects of the company. It is also the time when you get to know other partners and members of our professional staff and determine if Magenta Associates is the investment partner best suited for you and your company.
Step 3 - The Investment Decision
The results of the analysis will help us to decide if we should have vested interest. If the results are positive, you will be invited to make detailed presentation to the our investement decision board. This meeting lasts about an hour and is a highly interactive session.
Step 4 - Financing Terms
If Magenta Associates decides to invest in your company, you will receive a term sheet outlining our conditions for investment, the amount we propose to invest and the ownership position we expect. This position is negotiatied to establish a win-win agreement
Step 5 - Future Financing
Since most companies require multiple rounds of financing, Magenta Associates maintains a reserve for future financing. As additional financing is required, we guide the company’s management team through the follow-on funding process.