Krescendi - Selection Process

Entrepreneur's Corner - Selection Process

Recommendation: An introduction/recommendation by a reputable individual or a company will be the significant plus.

Pre-Screening: We will require the target companies to submit an executive summary of no more than 10 pages as specified in the section "Sumbit Executive Summary".

We pride ourselves for keeping clients' information confidential; however, we will not sign any confidentiality agreement at this stage and thus ask companies not to send us any confidential information before NDA is signed. Our preference is that executive summary be sent to us in the electronic form. We will usually contact the applicants within one to two weeks with our preliminary decision.

Business Plan Submission: We will ask those companies that passed our pre-screening test to submit a detailed business plan. To expedite the process, we recommend the target companies to follow our "BUSINESS PLAN REQUIREMENTS".

Face-to-Face Meeting/Presentation: Having received and studied the business plan, we will arrange a face-to-face meeting with the company's management team, where a project presentation will be required. Krescendi may ask for the follow up meetings if necessary, as well as the visit to the company’s premises.

Lock-Up Agreement and Term Sheet: If after the previous stages the decision is made to proceed further, we will ask the target company to sign a “Lock-Up Agreement”, which will restrict the potential investee from its fund-raising activity with anyone except Krescendi for a limited period of time.

We will also make an investment proposal on behalf of Krescendi (Term Sheet) to the target company during the lock-up period. This document will describe the form and the schedule of investment, as well as all the terms, upon which capital infusions will be made. At this stage parties sign a “Non-Disclosure and Stand-Still Agreement”. (In certain circumstances the NDA can be signed earlier)

Due Diligence: If the company accepts the “Term Sheet”, we will proceed into Due Diligence process, which will usually take up to four weeks to complete. Additional materials and face-to-face meetings will be required at this stage.

Advisory Board and Investment Committee: The Due Diligence results will be summarized and presented to Krescendi Advisory Board for expertise. Later Due Diligence Summary together with Advisory Board recommendation will be reported to Krescendi Investment Committee, which will make a final investment decision.

Closing: Krescendi management will present to the TC for signature the following documents:

Unanimous Shareholders Agreement
Management Employment Agreement
Employees Stock Option Plan (if applicable)
Loan Agreement (if applicable)

Upon the signature of these documents by both parties the deal is considered done. All further relationship between Krescendi and the Target Company will be regulated by above-mentioned documents.