Signing Readiness Check - Social Finance Academy

Investor Approach

1. To which extent have you identified suitable investors whose investment criteria are met by your social enterprise?

Not yet, we're only starting to understand the investor market We have some ideas about general criteria such as regions and sectors, but need to do thorough research Partially, we have identified some investors that may be suitable, but don't have a complete picture yet To a large extent, we have many potential investors on our list, but need to make additional inquiries within our network We have prepared a complete longlist of suitable investors with details of their preferences

2. Are you familiar with the information that these investors need to initially assess your social enterprise?

No, we will simply shower them with all the material we have I have a vague idea. We are currently working on drafting something Mostly. We checked the requirements on their websites and already prepared an executive summary Yes, we are well prepared with a full set of information material, from executive summary and business plan to pitch deck and financial forecast with different scenarios. Absolutely. We thoroughly checked all publicly available information about them, called some of our sources for additional soft facts and prepared all relevant documents.

3. Are you prepared to approach these investors?

No, but I'm a great talker so I will simply call them Not yet, but I have made some sketches how to approach investors on our longlist Partially. I asked some of my fellow enterpreneurs for tips and prepared a short text that is supposed to create interest Sure, we discussed the right approach in the team, went through each name on our longlist and integrated recommendations from our network Absolutely, we made a plan for an individualized investor approach, including personal introductions that our network can make for us

Management Presentation

1. Have you clearly defined the unique selling proposition of your enterprise?

No, never heard of this We have a great product/service that speaks for itself We discussed this in the team and tried to refine our position Almost, we clearly compared our offering against existing solutions and currently define how we will exactly position ourselves Completely. We sharpened our USPs and are ready to substantiate our claims with facts and data

2. Did you work on telling the story of your social enterprise in a compelling way?

No, but I'm sure my enthusiasm will hit the right tone Not yet, I'm only starting to research how to do it best Somewhat. I made a draft and will discuss it with my team. Almost. We prepared a storyline within the team and will now make a dry run with friends and mentors Absolutely. The storyline is ready to go and we received great feedback from our test audience

3. Have you practiced pitching in front of potential investors?

Not yet, but I'm a great presenter so I will pull it off on the spot We have started to prepare ideas for a great pitch within our team Yes, we prepared and trained the pitch internally Sure, me and my team members have already pitched on several events in front of investors. We will now finetune the presentation for approaching our longlist of impact investors Absolutely, we're somewhat professional in this, having had several investor pitches and Q & A sessions that brought us great feedback

Investor Due Dilgence

1. Are you familiar with the typical investor due diligence?

I don't have the slightest idea. What is this? I heard stories from my network, but we're just starting to learn more about it We gathered some information and are preparing ourselves for this phase Yes, we shared and discussed the main due diligence items and insights in our team Yes, we are fully informed about the typical due diligence steps and also received tips and lessons learnt from external sources such as entrepreneurs, investors and mentors

2. To which extent did you organize your team for an efficient due diligence process?

Not at all, but I'm sure I'll manage It's basically me who is in charge and I am aware that our resources may not be sufficient to answer all investor issues within the time-frame We outlined a core team as well as the necessary resources and responsibilities The necessary team, resources and project management capacities are firmly in place We are perfectly organized and additionally secured advice and support from external experts

3. Which due diligence materials have you prepared?

Nothing yet We are currently discussing this in our team We made a list of materials and started to prepare them We drafted an extensive due diligence questionnaire that will address all major investor issues We are fully prepared with due diligence questionnaire as well as backup material, scenarios and forecasts

Investor Selection

1. Are you clear about what you want from your future investor(s)?

Why? I just need the money and that's it It's basically a matter of chemistry and I'm sure we'll find out once the investment contract is signed I discussed this with my team and we are aware of certain value adds that we seek We know all the relevant criteria that will ensure that we select the right investors for us Yes, we already prepared a shortlist of our favorite investors according to the information and impressions that we gathered during the due diligence phase

2. Are you aware of the consequences of different types of financing for your social enterprise?

No, I have no clue Somewhat. I know about the main effects for my social enterprise's prospects, mission and future growth path Yes, we discussed this internally and are familiar with the features of different financing instruments and sources, including their long-term pros and cons Yes, this is why we have defined clear preferences for types of financing instruments and sources that are summarized in a specific financing structure that we target Completely. We made a very educated decision and are already discussing this issue with our favorite potential investors

3. Have you considered using hybrid financing and cooperation models for your social enterprise's growth?

Not at all, never heard of this We are aware that such models exist and are collecting information about them Partially; we had discussions about these models, but don't know yet whether they are suitable for us We thought a lot about such models and are currently comparing them with traditional financing instruments Yes. We finished our analysis and made a very educated decision about the right financing structures for us

Negotiation

1. Have you prepared yourself for negotiations on the main terms and conditions of the financing?

No, not really This is not our focus right now. We're waiting until the investors come up with it We started to prepare ourselves and collected information internally as well as from our network We're getting there. We have made a list of our needs and expectations, based on the standard term sheet items for the specific type of financing we seek We're fully prepared and also secured legal advice to understand and professionally answer all typical negotiation points

2. Are you familiar with the relevant features of typical financing contracts for the kind of investment you seek?

Not yet We have an idea, but without details or facts yet We have a draft that we are discussing and reviewing right now We have sought legal advice and are well prepared We prepared a contract proposal ourselves, are discussing it with selected investors and received good feedback so far

3. Did you define clear cut-off criteria for your negotiations with investors and are you ready to bear the consequences?

No, but I'm sure it will all go smoothly We're in the process of doing so We are discussing these issues internally and already thought about alternatives if negotiations might fail Yes, we know where we have to say no in order to avoid compromising our vision, mission and scaling plans Yes, absolutely. In addition, we have made sure that there are enough financial reserves to go for alternatives if negotiations were to fail