Assuming that the basic criteria for investment are met and that the company has decided that it is seeking equity investment then the following process will be undertaken.
- The executive will review the business plan and let the company know whether or not the proposal will be considered further.
- If it is not suitable for Archangels, we will try and suggest other potential investment sources.
- If it is considered to be suitable for further investigation, then a meeting will be held with the management team to discuss the plan and the needs of the company.
- If there is still interest, then some basic due diligence will be undertaken and other members of the syndicate may become involved in the assessment.
- The company will be asked to present to the Board of Archangels.
- The investment and other resource needs of the company will be discussed and agreed and an outline deal structure will be set out.
- Appropriate due diligence and preparation of standard investment agreements etc will commence in parallel.
- The company will normally be asked to present to a forum of interested potential investor members.
- A non-executive chairman and a further non-executive director will be identified and agreed with the management team.
- Any debt or grant requirements will be finalised.
- Completion of the investment will proceed.
- Archangels endeavour to keep deal costs low, charging upon completion of a successful funding round a research fee to cover due diligence and the initial investment. We also use low cost standard legal agreements which keep the legal fees payable by the company for completion of an investment to a minimum. There is a modest annual fee to the companies to cover the costs of ongoing monitoring and liaison.