Overview
CTV's investment process was developed based on an analysis of best-practices from across the investment and academic communities, particularly as they related to the funding of seed and pre-seed stage companies and technology validation activities. After studying programs from other academic institutions, professional venture investors, and the financial services industry, and combining the best elements of each, CTV's process was specifically tailored to its planned activities, and enables future reference, benchmarking, and review.
The CTV process is a multi-phase procedure, with go/no-go decision points at the end of each phase. This process is described below.
Phase One: Screening
Opportunities may come directly to CTV from the relevant researcher or a local entrepreneur interested in working with a Case researcher. Alternatively, the University's Technology Transfer Office may refer an early-stage technology or team to CTV for consideration.
An initial screen is conducted by the CTV management team to assess the opportunity's potential across a number of core criteria including its association with Case or an affiliate institution.
Phase Two: Initial Review
Following the initial screening of the opportunity, CTV's management team meets with the proposed principals of the new company (generally the researchers) to perform a more detailed review. The goal of this phase of the process is to assess the potential for CTV to effectively work with the researchers to validate and commercialize the technology.
This phase involves an examination of the market, technology, and commercial potential of the opportunity (among other factors).
Phase Three: Detailed Review
Following the second phase review of the opportunity, the management team of CTV conducts a detailed review of the opportunity with the goal of determining the amount of funding the technology validation and business creation efforts will require.
Following the completion of this phase, a detailed business and financial plan is created along with a recommendation to fund or pass on the opportunity. Those that are selected for funding move to the next phase in the process.
Phase Four: Funding
Opportunities successfully completing the first three phases of the CTV investment process are considered for funding. Recommendations to fund are prepared in the form of a detailed, formal report that will include background on the opportunity and the technology, documentation of all due diligence activities, and a recommended funding level. Opportunities recommended for funding also generally receive a license to the technology to be validated from the University's Technology Transfer Office on preferential terms.
Opportunities approved for funding receive capital following the creation of appropriate legal documentation and then become CTV "portfolio companies" and are subject to the ongoing monitoring provisions of the next phase of the process.
Phase Five: Monitoring
All CTV portfolio companies are closely monitored by CTV. This includes a review of quarterly or monthly financial statements, active participation on the company's board by a member of the CTV management team, and ongoing guidance and assistance including mentoring, introductions to other funding sources, assistance with executive recruiting and retention, and advice on subsequent financing rounds and other business issues.
Internal reports are prepared for review by the CTV management team on a quarterly basis.
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