If you are seeking venture capital for your project, the following is the process Golden Opportunities Fund follows in making their investment decisions.
The overall process starts with a phone call and executive summary from the company outlining an idea or a business proposal. Sometimes a brief telephone conversation can ascertain whether or not there is a good fit with our investment objectives. Other times, we will proactively call or contact you to encourage you to consider the benefits of having Golden Opportunities Fund on board as a financial partner for your business. Some companies may be at too early of a stage for the Fund, but we would want to follow them in their growth so we may move quickly when the time is appropriate.
Business Plan Review
If there appears to be a fit, we ask the company to provide a written business plan that describes the history of the company, the background of the management team and directors, markets, products or services, competition, strategy, historical financial statements, financial forecasts, capital structure and financing required.
We will review your business plan and conduct some very preliminary research. At this stage there will be a determination as to the fit of the investment to the Fund. If there is a fit we would move to the next stage or alternatively return your confidential information at your request.
Meet the Management Team
In the next stage we will have numerous meetings with the management team to discuss the business plan in detail and to get to know each team member. We believe the management team is always the most important part of any business. An on-site review of your facilities and product will now be appropriate.
As part of the decision making process we will evaluate the market, the products or services, the competition and the strategy in order to develop an in-depth understanding of the business dynamics. Additionally, we will check the personal and professional references of the management team, as well as talking to customers and other industry sources.
The Investment Decision
Once Golden Opportunities Fund has completed sufficient due diligence to decide that the opportunity is an attractive fit for our strategy, we will provide a term sheet for your review. Valuation, structure, Board of Directors composition, requirements for additional investment, option plans, compensation and so forth are all discussed, and terms agreed to. Golden Opportunities Fund typically requires board representation. We strive to match our interests with those of the entrepreneurs so that we can work together as true business partners throughout the growth of your Company.
Final Due Diligence
Once the term sheet is executed the Fund will complete its due diligence and obtain board approval for the project. Once board approval is obtained we would move to legal and closing documents.
We can generally make a commitment within three to six weeks of receiving a business plan. Legal documentation can take an additional two to three weeks before the transaction is closed, depending on the complexity of the transaction.
Golden Opportunities Fund's Due Diligence Process
Golden Opportunities Fund conducts a thorough due diligence review before making an investment decision, and at any stage we may make a decision not to invest.
Our due diligence review includes, but is not limited to the following:
- Assessment of the management team
- Market evaluation
- Reference checks
- Technology, products, service evaluation
- Business model evaluation
- Feedback from customers or potential customers
- Assessment of return potential and likelihood of a successful exit
- Beliefs on market size, growth, people, and barriers to entry
- Evaluation of key aspect of the Company’s business plan
- Exit strategy
- Impact on Saskatchewan economy and employment
- Compatibility to Fund’s current portfolio and objectives
If you would like more information about Golden Opportunities Fund or our investment process, contact us.
Founded in 1999, Golden Opportunities Fund is the first Provincial Retail Venture Capital Fund and the Fund of choice for 132 Saskatchewan companies. To date, the Fund has committed approximately $350 million to investments in these companies which are strategically diversified across key growth sectors of the province.
Golden Opportunities Fund has an investment approach that has been derived from many years of entrepreneurial, investment, and operational experience.
The Fund provides financing solutions to start-up, growth and expansion, and mature companies with the goal of creating long-term financial returns for all Shareholders and an emphasis on well-aligned interests.
Golden Opportunities Fund invests to build long-term value. The Fund provides patient capital, acknowledging that it takes time to execute a successful growth strategy and that the road to success is not always smooth.
The Golden Opportunities Fund team builds value for its Shareholders by investing in businesses with strong management teams and supporting those management teams through strategic involvement at the board level, guidance on operational planning, new customer connections, recruitment, and identifying exit opportunities for all Shareholders.
For More Information
If you are seeking venture capital for your project, please contact the Fund’s Investment Management team.
Golden Opportunities Fund
830, 410 22nd Street East
Saskatoon, Saskatchewan S7K 5T6
Phone: (306) 652-5557
Fax: (306) 652-8186