Our Process
The companies we build with our entrepreneurs often take years to mature. Our process is designed not only to confirm that your business has great potential, but also that we can and want to work together over the long term. We invest early and are scrappy, but we are also very analytical and take the investment process very seriously. And while we pride ourselves on making decisions efficiently so that we don't waste anyone's time, rarely is the decision to invest in a company made in less than three months from when we receive the original business plan.
Introduction:
We recommend using any and all connections to reach us. A business plan has a much better chance of being considered if someone we know and respect brings it to our attention. We receive over 1,000 plans annually; as a result, those sent without an introduction are less likely to make it to the top of the list.
Business Plan:
Before we make any calls or schedule a meeting we require a comprehensive business plan. Given the number of proposals we receive every year, it's impossible for us to take every meeting request.
Contact:
If your proposal seems promising, one of our investment professionals will contact you. Please note that, on average, less than 30% of the business plans we receive make it to this point.
Meet and Greet:
We meet with approximately 100 entrepreneurs a year to dig more deeply into the proposed plans, teams and opportunities.
Due Diligence:
If we make it to the next step, we will draw on our collective experience and network of expert advisors to bring to light key risks, issues and opportunities.
Follow-Up:
We typically work with entrepreneurs for several weeks to better understand the business model and opportunities. This is an important time for the two teams to get to know one another and to determine if we view the world along similar lines and can work well together. We encourage all entrepreneurs to do a background check on us—just as we do on you—including consulting CEOs, entrepreneurs and board members with whom we have worked in the past.
Terms:
Should both parties decide to work together, Catamount will submit a term sheet. At this point we will have completed most of our due diligence and can focus on concluding any remaining legal documentation. We can also turn our attention to the next steps in building your company.
Funding:
By the time we fund your company (and of the approximately 1,200 business plans we reviewed in 2010, for example, we funded just three companies), you're already part of the Catamount family. Rather than marking the end of the process, funding is actually the beginning of a partnership.