A company seeking financing should submit an executive summary of its business plan to us by e-mail, regular mail, or fax (see Contact Us). This summary should provide a description of the company's product or service, its target market and competition, and how it plans to effectively market and sell this product/service; it should also provide a description of the management team, a summary of the company's historical and projected financial performance, the amount of funding being sought, and the proposed pre-money valuation of the company. We will then use the following process in evaluating the investment opportunity:
1. Initial Review [Estimated time to complete: 1 week]
We will review the executive summary and, if interested in learning more, will usually ask to see a full business plan. This business plan should include, among other things, a complete market and competitive analysis, and a comprehensive financial plan for the next 3-5 years.
2. Detailed Review [Estimated time to complete: 2-4 weeks]
After reviewing the business plan we will either seek additional information with which to further explore the opportunity or will decline the opportunity. The former may culminate in a meeting and/or several phone conversations with management.
3. Term Sheet [Estimated time to complete: <1 week]
If both the company and Warbros are then interested enough to proceed, we will usually submit a draft term sheet to determine if both sides are able to reach a fundamental agreement on the structure of the prospective investment. This draft term sheet will eventually be converted into a formal term sheet, at which time we may also seek some sort of exclusivity period to perform our due diligence.
4. Final Due Diligence [Estimated time to complete: 2-4 weeks]
This stage will involve a detailed review of the financial plan, discussions with key personnel, reference checks on management, and more detailed analyses of the product proposition, market, and competition. Following this due diligence, we will either commit to fund the investment or decline the opportunity.
5. Closing [Estimated time to complete: 2-6 weeks]
Following the commitment, we are normally able to close the funding within 30 days depending on the complexity of the transaction and whether or not there is a need to bring in co-investors.