A company being considered for the Next Wave Impact Fund will be thoroughly screened and vetted through the process outlined below.
Who’s Who In the Screening Process?
Limited Partners (LPs) – 87 investor members of Next Wave Impact Fund
Investment Committee (IC) – Managing Director and “The Eleven” Lead Investors
Managing Director (MD) – Alicia Robb
Key Tools Used In the Screening Process
Proseeder – Manages the process and documentation for all companies in the screening pipeline
Zoom – Platform for video monthly company presentations, due diligence discussions, and other meetings
Survey Monkey – Online survey platform for gathering feedback, volunteering to be on due diligence team, and voting companies forward to due diligence
The Screening Process
|Identification||Submit companies for consideration that meet Next Wave US Impact Fund’s investment criteria.
The goal is to have a slate of up to ten companies per month.
To submit a company for consideration, have them apply as an entrepreneur on Proseeder and make sure they say that you referred them to the fund in their application (or they will be deleted, as we are only reviewing companies referred to us by our fund investors).
Note: If a company does not move forward in the screening process, it is the responsibility of the nominating person to communicate with the entrepreneur to provide feedback.
Once we make an investment in an industry or geography, we will generally focus on other industries and geographies for other investments that year.
|By 1st of the month||All investors|
|Pre-Screen||Vote for top two companies and an alternate.||1st Thursday of the month||IC|
|· Tally votes and invite top two companies to Screening Call (plus one alternate as back-up).
· Communicate the selected companies to all Investors (link to company profiles in Proseeder).
|1st Friday of the month||MD|
|Screen||Entrepreneur Screening Call:
Note: Company information should be reviewed in Proseeder by all investors prior to the call.
|2nd Thursday of the month (the Entrepreneur Screening Calls are recorded for those that cannot attend ‘live’)||All investors
(Facilitated by MD and IC members)
|· Evaluate and vote via Survey Monkey on whether to proceed into a shallow dive.
· Identify who wants to participate in the Due Diligence stage.
|3rd Wednesday of the month||All Investors|
|Tally results and determine if moving to Due Diligence is warranted based on feedback and additional discussion.||Immediately after survey||IC|
|Due Diligence (DD)||Team Formation – One or two IC members will lead the Due Diligence and will create a team including LP volunteers based on interest shown in the survey.||Immediately after survey||IC|
|Shallow Dive – Initial research to determine if there are any immediate/obvious ‘deal breakers’ that would stop us from moving forward with a full Due Diligence. The Due Diligence team will determine whether 1) a Deep Dive is warranted, 2) the company is moved to the ‘Watch List’, or 3) the company is removed from consideration.||Within two weeks of vote.||2 IC members are Leads and LPs/IC are DD team members|
|Deep Dive – If the team decides to do a Deep Dive, they will complete the Due Diligence to evaluate the company based on our investment criteria. They will write up an investment memo with their recommendations based on their findings.||Three to five weeks||Due Diligence Team (IC and LP members)|
|Investment Decision||· Review the Due Diligence and Investment memo, clarify considerations with the IC team and vote to invest.
· If at least 9 IC members vote to invest, the IC will vote on the amount to invest.
Note: IC members that have previously invested in the company under review must recuse themselves from leading the Due Diligence and voting in the Due Diligence or Investing Decisions.
|Within six to eight weeks.||IC|