The basic steps of Mission Ventures' investment process are:
• Executive Summary Review
• Pre-Investment Analysis and Due Diligence
• Investment Decision
• Deal Structuring
• Extensive Value-Adding, Post-Investment Involvement
• Investment Liquidity Strategy
A team effort is applied to the in-depth investment review process. Generally, one of the Mission Ventures Partners will take the lead on each investment opportunity. After determining that our basic investment criteria are met, a second member of the team is involved to assist with extensive analysis. Management of the prospective portfolio company may then be invited to present its executive summary to all the Partners. All information is then discussed regularly during "Partners Meetings". As a result, all of the Partners develop significant knowledge about the investment candidate, and the final investment decisions are based on full consensus. This helps lead to a true sense of ownership of decisions that is shared by the entire Partnership and, in turn, encourages future participation and contribution for portfolio companies.
The General Partner's active involvement with portfolio companies is a fundamental element of Mission Ventures' approach to investing. Close interaction with company management, co-investors, and leading industry participants enables the Partnership to add value to the Fund's investments by developing ways to help these companies execute their business plans more effectively. In the majority of portfolio companies a Partner will be represented on the Board of Directors. These value-adding activities go well beyond attendance at board meetings or communication solely with company CEOs. They include strengthening senior management, as well as active participation in basic operating, strategic, and financial decisions.
Lead and back-up partners are assigned to each portfolio company in order to ensure appropriate coverage and involvement with portfolio investments. Typically, the lead Partner will engage in board-level issues for the duration of the Partnership's investment in the portfolio company. However, other Partners will often become involved in assisting the portfolio companies on various matters. The Managing Partners' experience has proven that this type of teamwork can produce significant benefits.
In the management of investments in portfolio companies, Mission Ventures intends to solicit, as needed, the extensive expertise and resources represented by the Affiliates Fund and the professional networks of the Partners. Such resources might be called upon to provide consulting, interim management or board seat representation to portfolio companies.
In the final phase of the venture investing process, the Partners will utilize their expertise when seeking liquidity events for investments in order to generate the maximum value for the companies involved.