Case Studies

How DIR Met its Client's Needs

DIR worked closely with the client on

• Initial Evaluation of team, product, market size, structure and growth rate, competitive landscape, likely timing and paths to liquidity.
  • creation of an Investment Returns Model driven by the company's financial projections and a pro forma cap table through liquidity
  • determination of the company's total capital need and a resulting reserve strategy for future investments
• Portfolio Context and Construction
  • considering how this particular investment fit into a growing portfolio of other early-stage investments
  • considering the role the early-stage portfolio plays in the client's overall asset allocation framework
• Due Diligence
  • customer interviews to validate the core value propositions
  • intellectual property and freedom to operate
  • technology and product road maps and their importance to achieving financial plan
  • hiring plan and options budget
• Deal Structure
  • leading the investment syndicate's negotiation of key terms
  • leading the review of all definitive documentation
• Board Representation DIR took the board seat
• Company Development In its capacity as a director, DIR actively works with management through subsequent financing events and other aspects of its growth to build the company towards a successful outcome
• Exit DIR remains engaged until the successful conclusion of the investment, using its experience to positively affect the company's growth and the ultimate success of the investment.

How DIR Meets its Client's Needs

DIR worked closely with the client to

• Proactively survey each client PE and VC portfolio for potentially attractive future co-investment opportunities
• Stay in touch with PE and VC fund managers to assure they area current and aware of Client's particular interests in co-investments (e.g. stage, size, etc.)
• Portfolio Construction DIR works with Client to consider the behavior and performance of its entire portfolio of direct co-investments
• Do an Initial Evaluation of each opportunity as it arises
  • basics: team, product, market size, structure and growth rate, competitive landscape, likely timing and paths to liquidity.
  • analytics: creation of an Investment Returns Model driven by the company's financial projections and a pro forma cap table through liquidity
  • determination of the company's total capital need and a resulting reserve strategy for future investments
  • analysis of terms in the context of total capital need
• Negotiate terms with fund managers
  • carried interest or other fees (if any)
  • information and/or board representation rights
• Perform Rigorous Due Diligence on each opportunity that survives initial scrutiny
• Negotiating Deal Docs and Structure representing the Client's best interests and positioning the investment for long-term success (e.g. board composition, voting thresholds, etc.)
• Board Representation as appropriate
• Company Development as appropriate
• Exit DIR remains engaged with the investment through its financing life cycle, representing Client interests and positively influencing outcomes .