Funding Process

Purposes of the funding process are the optimization of the enterprises’ performance through Incubator’s participation in its equity, investing in companies with growth potential and attain a high rate of return.

STEP 1: APPLICATION SUBMISSION

The candidate – enterprise applies for funding to the incubator, compiles a Business Plan and provides the evaluation team with all the necessary data for the technical documentation.

Deliverables

  1. Business Plan (analytical)
  2. Patents/Trademarks/Copyrights
  3. Technical Documents/Blue Prints/Designs/Tests/Drawings

Average Completion Time: 5% of the total process time

Related Documents

  1. Business Plan (analytical)
  2. Patents/Trademarks/Copyrights
  3. Technical Documents/Blue Prints/Designs/Tests/Drawings

STEP 2: DATA EVALUATION AND ANALYSIS

The evaluator analyses the available data according to funding criteria and compiles an evaluation report to the Funding Committee (or to the responsible for funding authority) based to in-house or external experts’ studies. This report constitutes the main characteristics of the enterprise

Deliverables

  1. Evaluation Team data analysis / Other relative documents
  2. External Expertise Reports (Business / Technical)

Average Completion Time: 30% of the total process time

Related Documents

  1. Evaluation Team data analysis
  2. External Expertise Reports

STEP 3: EVALUATION REPORT

The evaluation team compiles a report / proposal for the Funding Committee considers the business and technical documentation and the reports from all the external expertise. During this step there is an identification of the risks, the capital needed, the rules of cooperation, the number of the future investments and all the other agreement details.

Deliverables

  1. Evaluation Report / Agreement Proposal

Average Completion Time: 10% of the total process time

Related Documents

  1. Evaluation Report / Agreement Proposal
  2. Business Plan
  3. Technical Documents/Blue Prints/Designs/Tests/Drawings

STEP 4: FUNDING COMMITTEE PROPOSAL

At this step the funding committee assesses the evaluation team report and its agreement proposal. According to funding criteria and general strategy of the incubator they either accept or deny the proposal. They should assess thoroughly the proposal and finally propose the continuance or not of the specific project with their own suggestions. At this step the committee files a report to the Board of Directors.

Deliverables

  1. Funding Committee Proposal

Average Completion Time: 10% of the total process time

Related Documents

  1. Funding Committee Proposal

STEP 5: BOARD OF DIRECTOR DECISION & FINAL PROPOSAL

At this step a Board of Directors’ meeting is being held and the final decision is being issued taking into consideration the funding committee’s proposal accompanied by a suggestion for the future planning for the enterprises’ funding determine the necessary framework for negotiations.

Deliverables

  1. Final Decision
  2. Written authorization to CEO to proceed with all necessary steps: negotiations, legal documents

Average Completion Time: 10% of the total process time

Related Documents

  1. Written authorization

STEP 6: NEGOTIATIONS - AGREEMENT

At this step the responsible person discuss the incubator’s proposal with people from the candidate company in order to come to a final agreement. At this stage of negotiations about the funding scheme and all agreement conditions both the Funding Committee and the Board of Directors are constantly informed in order to close the final agreement.

Deliverables

  1. Non paper (A document with all basic agreement conditions that must be signed)

Average Completion Time: 20% of the total process time

Related Documents

  1. Non paper

STEP 7: DUE DILIGENCE / INVESTMENT

At the final step there is a thorough examination of the enterprise’s parameters concerning the provided data and a preparation of all the legal documents for the funding procedure. Legal departments do all necessary work and prepare the documents to be signed.

Deliverables

  1. Due diligence (Legal, Accounting, Tax, Business, etc)
  2. Legal documents
  3. Investment (Capital transfer)

Average Completion Time: 15% of the total process time

Related Documents

  1. Legal documents
  2. Accounting records
  3. Bank Statements