IAG developed a structured and thorough process to select the best opportunities to be presented to its members
a. The Company is encouraged to read carefully the website before going through the application process to be sure there is a good fit between the company’s focus and members’ interests.
b. Complete the online application form.
c. Once you go through the application process, you will be asked to pay a €50 application fee. This fee is non-refundable, so it is important to check the website and determine if there’s a fit between your company and our investment focus.
d. Your application will be complete once you have finalized all of the steps outlined above. Your application will not be reviewed until it’s fully completed.
e. Our members are free to identify companies in which they are interested, therefore is no guarantee that your company will be invited to give an investment presentation.
1. First evaluation
When IAG receives a project, the first phase is called Pre-screening. This consists of a preliminary analysis of the business plan in order to verify that the essential requirements are met for IAG members to consider it as an investment (i.e. owned and defensible innovation over time, high growth potential and relevance to the other elements of the investment focus).
The opportunities are pre-selected by a Managing Director, with the cooperation of our internal team. If the proposal successfully goes through this phase, it will then proceed to the second phase called Screening.
Only the proposals most relevant to the investment focus will be forwarded to the members, and will then have access to the second phase of screening.
In this phase a group of 2 – 5 members of IAG with knowledge of the industrial sector will be created, . The group will analyze the business plan and further documentation sent by the entrepreneur in a confidential procedure. If there is a positive answer from the group, a meeting will be scheduled with the team or owner of the plan, to personally meet the IAG members. This is one of the most important phases of the process of selection, as the entrepreneur and team are one of the most relevant variables in the investment decision-making process. After the meeting, the screening group will express their opinions regarding technology, and business plan to the team, and on the presentation qualities it has to meet in order to be handed to theScreening Committee. If the feedback is positive, then the plan will be taken forward.
3. The Screening Committee
The committee (composed of 6 IAG members) meets once every two months to select the best 2/4 projects, which will then be presented to all members in the Company Presentation meeting. One or more members of the screening group will volunteer to be an internal sponsor for the opportunity, prior to its presentation, and to follow the Due Diligence and eventually, the negotiation of terms and conditions of the investments, in case the members appreciate the initiative.
4. Company presentation meeting
The company presentation meetings take place every 2 months and a half approximately, (totaling 5 per year). In these occasions the entrepreneurs of the selected projects, are invited to present their initiative and have 15 minutes to do so. At the end of the elevator pitch a session of Q&A of 15 minutes will follow, and after that a closed door discussion session between the IAG members. At the end of the day, every member individually expresses his/her opinion on the presented companies and indicates the desired amount that they are willing to invest subject to Due Diligence.
5. Due Diligence
If the opportunity presented by the members, has collected enough committment, the Sponsor (from this moment called the Deal Champion), starts the Due Diligence phase, during which in depth checks will be undertaken on the technology, on the business and the legal aspects. If no problems or obstacles are found, the Due Diligence will normally last for 2 months.
Once the Due diligence is over, the members are invited to confirm or withdraw their commitment announced after the company presentation. The investment members of every single investment will proceed as a group to drafting the contracts, the special purpose vehicle used for the investment and the “closing”.
7. Post-investment involvement
The IAG members tend to have an active role in the companies they invest in. often the Deal Champion will sit in the Board or be part of the Advisory Board of the companies in the portfolio. The other members of the consortium of investment are always available in bringing their value, in terms of contacts as well as industrial expertise.