Getting past the PAST test
Assuming a venture capital fund based in W. Europe and Africa fits into our investment themes of digitalisation, decarbonisation and impact, we use the PAST acronym to describe our approach to analysing and deciding on a commitment.
P = People: 1. Team: composition, personalities, skills, leadership, motivation, commitment (time and money) 2. Track record as a fund manager, entrepreneur, founder or angel investor 3. Quality of investors and advisors 4. Communication with investors: open, honest, constructive and timely.
A = Access: 1. Access to quality deal flow through reputation, referrals and networks 2. Deal sourcing approach and process: IT, marketing, profiling.
S = Strategy: 1. Sector, technology, stage, geography, ticket, process 2. Target portfolio: composition, returns, impact, measurement, support.
T = Terms and Conditions: 1. Fund size, structure, costs, jurisdiction 2. Appropriate LPA (Investment and Fund-Investor Limited Partnership Agreement).