01 November 2021, by SEED Ventures
MOX by INVADE, a co-making space for creatives, has recently joined hands with SEED Ventures (SV), a Monetary Authority of Singapore (“MAS”) licensed venture capital ("VC") fund management company headquartered in Singapore.
The name MOX is inspired by the word ‘moxie’ which means to be brave, bold and daring. This is something MOX’s community exemplifies, the courage to be different.
As Singapore’s first independent workspace targeted at creatives, MOX stands out from other co-working spaces by connecting members with resources and collaborative opportunities for its community.
DUE DILIGENCE IS EVERYTHING
- Having a personal relationship with the investee company is the chief way SV curates its prospective investees. This is a necessary approach to understand the investees' personalities, ethics and beliefs, even before we discuss investments.
Our mantra: "first the match, then the business".
- In 2013, SV started an Accounting outfit to provide Corporate Secretarial and Accounting services to small businesses. Click here for website. This grassroots-approach gained us invaluable insights into a magnitude of businesses and investment opportunities. SV invested into the most viable ones. The technical DD was conducted thereafter.
"The match --> the pitch --> the technical DD"
- The technical DD is the audit of representations made by the prospective investee during the pitch. It focuses on salient areas such as Branding, Human Resource, Law, Accounting & Finance. If the investee does not make it through the DD phase, the investment may not materialise.
- The investor relies on the DD to make the decision to invest. The process can take anywhere from 1 to 3 months, longer if red flags are spotted. Click here for FAQ and here for the Funding Roadmap.
SEED Ventures looks at the following areas during its DD checks:
- Marketing & branding
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Is there a marketing roadmap?
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How is the advertising budget planned out?
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What is the company's corporate identity?
- Human Resource
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Does SV have an existing relationship with the prospective investee?
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Are the employment contracts, Terms of Reference & KPIs for key appointment holders properly planned out?
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How is the morale amongst colleagues and shareholders currently?
- Law
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Internal. Are the shareholder agreements in place?
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External. Are the service contracts with the clients properly written?
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Are there implied, foreseeable or existing lawsuits?
- Accounting & Finance
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Compliance checks. Is the company compliant to the authorities?
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Do the profitability numbers add up? What does the balance sheet currently look like?
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How are the internal controls?
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Is there a financial roadmap?