

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?