INVESTMENT PROCESS

Phenomenelle strives to respond promptly and efficiently to investment opportunities.  Our process typically begins when we receive a business plan referred through our network of entrepreneurs, other investors, and partners. Because of our well-defined, preferred investment criteria, it's usually clear to us whether or not an investment is right for our fund. Based on our review of the plan, one of the General Partners may schedule an initial meeting with company executives. If we believe there is a fit between the opportunity and our fund, we present the opportunity to our Investment Committee, seeking to build consensus early in the process.

When the Investment Committee decides to proceed with evaluating an opportunity, we assign a two- to three-person team to conduct due diligence on the company and its products. We meet with each member of the senior management team, on-site whenever possible. We rely heavily on conversations with customers and strategic partners to assess the strengths and weaknesses of the new product/service. Research analysts and industry executives are  another important source of market intelligence for us.

Upon satisfactory completion of our due diligence, we invite the CEO or qualifying owner or executive (woman or ethnic minority) to make a management presentation to our Investment Committee. If the majority of the Investment Committee approves of the investment, it is sent for a vote by the Limited Partners. After 75% approval by the Limited Partners who vote, the General Partners negotiate the final terms.

The fund takes an active role in managing our portfolio companies, usually obtaining at least one Board seat. We leverage our extensive contact network to assist our portfolio companies with Board, business and management team development, and in obtaining follow-on financing.

Our process is designed to be very thorough while facilitating quick decision-making and responsiveness to our network of entrepreneurs, partners, angel investors and venture capital firms. Phenomenelle uses a variety of online tools to facilitate communication and decision-making. We invite our Limited Partners, Board Members and Advisors to become as involved as they would like to be in our investment process.