Investment Procedures
Momentum's investment process is designed so that prospective applicants and Momentum do not unnecessarily devote time and effort to preparing and analysing copious material on deals that are unlikely to result in an investment. Applicants are therefore promptly advised if Momentum will not invest because:

They are not eligible for funding by Momentum

They do not display the key characteristics of a venture capital investment

They do not meet Momentum's selection criteria

The investment is unlikely to be approved by the Momentum Board


Please note that as a general rule, no meetings with applicants are held until Stage 2 of the process outlined below.

Momentum's investment process, which is described in detail below, typically results in high quality applications receiving funding within 12-14 weeks. Please note that estimated timing provides an indication only and that actual timing may differ depending on a range of factors, the most important being the quality of the business opportunity itself.

Stage 1: Funding application
All applications for funding must be submitted on Momentum's Investment Application Form. The Form allows a company to explain its business strategy and its attractiveness as a venture capital investment.
Estimated duration: 5 business days


Stage 2: Preliminary Assessment
An applicant who passes the initial screening process will be invited to submit a business plan and other supporting information. Telephone and face-to-face discussions with the applicant may then be held. There may also be initial discussions with key technologists, customers, industry experts, etc.

Applicants will be advised if they succeed in passing the Preliminary Assessment. At the same time, they will be sent a pro forma Term Sheet, which sets out a summary of the terms and conditions under which Momentum would be prepared to invest in the applicant company.
Estimated duration: 15 business days


Stage 3: Term Sheet
Before Momentum invests additional time to assessing the proposed investment, the applicant needs to sign and return the Term Sheet to indicate that they accept the proposed investment terms.

The Term Sheet also gives Momentum an exclusive period, typically 60 days, to finalise its due diligence and investment procedures.
Estimated duration: 5 business days


Stage 4: Due Diligence
Due diligence is the process of verifying the applicant's claims about its technology, market potential, financial projections, etc. It is an intensive process in which the applicant supplies extensive additional information. There are also many detailed discussions with company personnel, customers, industry observers, etc. Specialist consultants may be used to assess some key issues if appropriate.

If the due diligence process confirms the attractiveness of the investment, Momentum will prepare an investment recommendation for its Investment Committee and Board.

The terms and conditions of the investment will be in line with the Term Sheet unless the due diligence process has led to some agreed variations to these terms and conditions.
Estimated duration: 30 business days


Stage 5: Investment Committee approval
The Investment Committee is an internal quality control process that ensures that all investment procedures and professional standards have been followed and all key issues addressed. The Investment Committee meets regularly every two weeks.
Estimated duration: First available Investment Committee Meeting


Stage 6: Board approval
The Board of the Momentum fund is formally responsible for all investments made by the fund. The Board meets monthly and receives prior briefing on any proposed investment before receiving a formal investment recommendation. Applicants will generally have no contact with the Board.
Estimated duration: First available Board Meeting


Stage 7 : Completion
Once the investment is approved by the Board:

Legal documentation will be completed; this will reflect the investment terms already agreed in the Term Sheet.
Any necessary actions, eg appointment of directors to the applicant company, will be carried out.
The agreed initial tranche of funding will handed over.

Estimated duration: 15 business days