Our process

Entrepreneurs - Our process

The investment process at BIP is based on standard procedures for the venture capital industry and is easy to understand. The time that elapses between your first contact with BIP and the investment depends on a number of factors - the quality of your business plan; the availability of information before, during and after due diligence; the time lawyers take to produce documentation, the quality of the management team; and the structure of the company.

First Contact
Contact results from a referral or a phone call, but may also be via e-mail or in a meeting. Following an initial assessment of the company and its investment proposal, BIP managers make an early decision to follow up a proposal or reject it.

Initial Analysis
Once the investment team has enough evidence to suggest that the project shows potential for high returns, we begin our analysis, often by discussing the business with the entrepreneur for a clearer understanding. A quick scan report summarizing the business opportunity is discussed in our Team meeting. If the Management Team forms a favourable opinion, a more detailed analysis will be engaged.

Detailed Analysis
With the support of the Investment Committee and/or an expert in the field, one of our investment managers takes charge of discussions with management, aiming for a more thorough understanding of the company. We assess both the business opportunity and the capacity of managers, factoring in their values and objectives to build a productive working relationship.

Factors considered naturally include the market, the company's products, its management team and business model. Shared confidence in the business plan, including budgets and forecasts, is essential. This also enables us to anticipate future cash needs and devise a strategy to address those needs.

Term Sheet
The term sheet is a non-binding agreement setting out the basic terms and conditions (e.g. the amount and structure of the investment, and provisions to safeguard the interests of the investor) for an investment. The term sheet provides a model used to draw up more detailed legal documents at a later stage.

Once an agreement on the company’s strategy and financing structure is reached, we request authority to negotiate an investment by submitting our investment proposal to our Investment Committee or Board of Directors for investment approval subject to successful due diligence.

Due Diligence
The due diligence process involves the collection and verification of additional information concerning the management team, the market, the product or service, and the proposed transaction. We go over our assessment of relevant technologies, market dynamics and business economics to identify the most appropriate strategies and minimise risks. We also canvas customer references and business analysts for their opinions. Specialised legal and financial advisors review the company's legal structure and financial statements. Finally, we request our lawyers to prepare shareholder agreements and investment contracts as appropriate. The investment can then be implemented.

Investment
The investment becomes effective once all contracts have been signed, leading to the transfer of money and shares.

Portfolio Management
We devote considerable time and effort to help our portfolio companies expand. Where appropriate, we provide guidance or interim support, either directly or through our network of business relationships, in key areas that include strategic planning, human resources, marketing, sales and follow-on financing. Whenever possible, we also arrange introductions to potential customers and business partners. Once development has come far enough, which can take around five years, we start planning an exit.

Exit Management
To realise a return on a portfolio investment, we must be able to sell our equity stake for cash or the shares of another company. The most common ways to do this are mergers or acquisitions, leveraged or management buyouts, and public offerings.

You can send your documents to BIP Investment Partners by ordinary mail or in electronic form. We undertake to provide initial feedback within 2 weeks and to keep all applications fully confidential.