Phenomenelle strives to respond promptly and efficiently to investment
opportunities. Our process typically begins when we receive
a business plan referred through our network of entrepreneurs, other
investors, and partners. Because of our well-defined, preferred investment
criteria, it's usually clear to us whether or not an investment is
right for our fund. Based on our review of the plan, one of the General
Partners may schedule an initial meeting with company executives.
If we believe there is a fit between the opportunity and our fund,
we present the opportunity to our Investment Committee, seeking to
build consensus early in the process.
When the Investment Committee decides to proceed with evaluating
an opportunity, we assign a two- to three-person team to conduct
due diligence on the company and its products. We meet with each
member of the senior management team, on-site whenever possible.
We rely heavily on conversations with customers and strategic
partners to assess the strengths and weaknesses of the new product/service.
Research analysts and industry executives are another important
source of market intelligence for us.
Upon satisfactory completion of our due diligence, we invite the
CEO or qualifying owner or executive (woman or ethnic minority) to
make a management presentation to our Investment Committee. If the
majority of the Investment Committee approves of the investment,
it is sent for a vote by the Limited Partners. After 75% approval
by the Limited Partners who vote, the General Partners negotiate
the final terms.
The fund takes an active role in managing our portfolio companies,
usually obtaining at least one Board seat. We leverage our extensive
contact network to assist our portfolio companies with Board, business
and management team development, and in obtaining follow-on financing.
Our process is designed to be very thorough while facilitating quick
decision-making and responsiveness to our network of entrepreneurs,
partners, angel investors and venture capital firms. Phenomenelle
uses a variety of online tools to facilitate communication and decision-making.
We invite our Limited Partners, Board Members and Advisors to become
as involved as they would like to be in our investment process.