In general, the Mercia Technology Seed Fund expects to be the lead investor, but will actively encourage investment by management and syndication with other investors.
 

Stage of Company Pre-Investment

a) Typically less than 5 years post incorporation
b) Will have had professional assistance in regard to business plan preparation and marketing evaluation
c) May have had initial management and/or business angel funding and grant funding
d) Will have developed the technology to a point of established proof of concept
e) Will have early commercial interest in the technology or product

PHASE 1: Invest Request

1. Route to Mercia Technology Seed Fund:

a) Intermediaries (accountants, lawyers, business support services)
b) University technology transfer offices
c) Online self application form (click HERE)
d) Direct contact

2. Following receipt of an executive summary (outlining the product, proprietary position, competition, market opportunity, management and founders, company history), the opportunity will be assigned to a member of the investment team with appropriate sector experience

3. If a decision is made to proceed further, a business plan will be requested, to be followed by a presentation to at least one member of the investment team

PHASE 2: Investment Offer

1. Following the business plan review, presentation and preliminary due diligence, an ‘indicative offer’ will be made. This will outline:

a) Valuations
b) Pre-conditions (satisfaction against certain technical, commercial and financial conditions - to include reference checking)

2. A paper will then be submitted to the Investment Committee detailing the opportunity and indicative terms

3. The opportunity will either be approved with no changes to the indicative offer, or amended, or rejected

4. If accepted by the Investment Committee, a detailed ‘heads of terms’ will be issued to the prospective investee

PHASE 3: Completion

1. Following receipt of the signed 'heads of terms' from the prospective investee, the fund will complete its due diligence and will issue a set of legals. We use standard legal templates and, if these are not amended, legal costs are thereby kept to a minimum

2. Following agreement on legals, satisfaction in regard to due diligence and pre-conditions, the investment is made: “COMPLETION”

Timetable

The time from first introduction to completion can vary considerably and is dependent on a number of key factors; the stage of product/technology development, the quality of the business plan and market evaluation, the results of the due diligence process and the associated conditions precedent.