Investment Process

Approach

As a former financial executive and operating manager, Tenfold’s principal understands that obtaining financing can be a long and time-consuming process and, most significantly, is often valuable time spent away from your customers and team. We strive to review opportunities quickly and either move forward toward an investment or provide feedback on our concerns as soon as possible, allowing entrepreneurs to focus on growing their companies.

• Tenfold Investments is focused on the smooth execution of transactions. Our process is designed to provide the most efficient and effective experience for both parties and to provide visibility throughout the process. The result of this process is to align expectations and anticipated outcomes.
• Following the investment, we continue to work together with management in building out the strategy for the business and putting that strategy into play. Our post-investment activities proceed through the logical progression of developing out the direction most optimal for the business and management, leading to accelerated growth and outcomes. This sequence works towards an eventual exit from the business. Both the pre and post-investment processes follow along as outlined below.

In Detail

Stage 1: Discovering Investment Opportunities

Once we find an opportunity that resonates with our investment strategy, our preference is to receive an executive summary or summarized business plan that we can review in advance of an initial meeting.

Stage 2: Opportunity Exploration

During a first meeting, we typically look for companies to provide a presentation of the business opportunity including: reason for being, market overview, product/service technology, management background, competitive analysis, business model (including financial forecasts) and current equity structure. Should the opportunity fit within our investment criteria, Tenfold then commences a comprehensive appraisal including a thorough review of more detailed information and documentation, visitation of company locations, reference calls on the management of the company, product/technology evaluation, review of any intellectual property by patent counsel and other market, customer and competitive analyses.

Stage 3: Deal Structure

At this stage, we discuss anticipated capital needs, valuation and legal issues with the company, after which Tenfold is then able to construct and deliver a term sheet. When a consensus has been reached on all the terms, Tenfold commences final due diligence, which is typically the last step prior to making an investment.

Stage 4: Management of Investments

As an active investor, Tenfold strives to be a valuable contributor to management and the board of directors. With extensive experience as a manager, executive and investors in growing companies, Tenfold is able to provide strategic guidance, tactical experience, introductions to key industry contacts, recruiting and other resources to help our companies be successful. Overall, our key value proposition is to act as experienced counsellors, assisting CEO’s and their teams in making the crucial decisions necessary to grow their companies optimally.

Stage 5: Deal Exits

A successful investment exit results from careful and intelligent planning that begins with the initial investment and continues throughout the company’s growth. Tenfold helps management prepare fully for the ultimate realization of the investment through a strategic sale or private equity buyout. When appropriate, Tenfold can leverage its strategic contacts and investment banking relationships to facilitate a transaction to maximize the value of the company.