I've raised from several institutional LP's and they ask for formal investment procedure at VC fund as a separate document with roles, responsibilities, timelines, processes ets. May be someone has done something similar so I would not build from zero. I guess such procedure shall cover raising / origination / evaluation / investment decision / investing / acceleration (value creation and preservation) / monitoring / reporting / exit/
The investment process of a firm is a highly unique based on the Thesis, the personality of the managers, the market dynamics, etc. With emerging managers, the process is often very light. As a firm grows and adds partners, it can become quite complicated with various specialists and team dynamics. On a high level, there are six key components to a professional investment process:
- Sourcing - What is your process to find high quality dealflow
- Diligencing - How do you validate dealflow for investment
- Investing - What is your decision making process and target terms
- Supporting - How do you engage with and support portfolio companies
- Reporting - What is your process to collect data and report on valuations
- Exiting - How do you help exits and generate returns