In this post, we look at the process of raising capital using one of our recent investments – Care Sourcer – as a case study.
The first step for any company raising investment from us is to complete the two short forms on our website. This allows three members of our team – which is based remotely – to assess the basic information around each deal, against our criteria. This is what happens next.
The first step – Initial Contact via our website
After presenting during one of our community events (and wowing the team) in Edinburgh, Care Sourcer completed the initial contact forms on our website in early February. The next step was to assign their investment opportunity to a member of our team based on their stage, location and business type (in this case, the team member on hand to review Care Sourcer was Andy Sloane, based in Glasgow for ADV).
Once their initial information was received via the forms, Andy used our set of criteria to assess Care Sourcer’s opportunity and was able to develop a strong picture of what the founding team want to achieve – connecting care seekers with care providers through an online platform. Three members of the ADV team (including Andy as the investment lead) then formed a virtual huddle around the opportunity to determine whether or not to move forward.
The second step – Advanced Assessment
Care Sourcer’s founding team is made up of two founders who are experts in the care sector (and were previously competitors) and early employees at local tech unicorns, Skyscanner and Fanduel. We invited Care Sourcer to complete our Advanced Assessment form, which enables them to set out a much deeper picture of the company and their investment opportunity. This step of the process features questions such as: “What is it about your team that makes you confident that you will be able to engineer, deliver and sell your product?”. The response was then logged on our internally developed engine. The engine provides management of all our dealflow, CRM, an audit trail of everything we have looked at, as well automatically creating the Google documents that are used to power a scrum review.
The third step – Scrum Review
We then undertake the scrum review, which involves bringing in external industry experts so we get the best eyes on each deal. On this occasion, the investment team reached out to contacts in health insurance, healthcare provision and health tech acceleration, who provided deeper insight into the company’s future. Feedback from external experts focused on how Care Sourcer is a unique solution which truly focuses on increasing speed and reducing costs for care seekers.
At the beginning of March we invited the Care Sourcer leadership team in to meet the team in Newcastle whilst we were there visiting the local ecosystem. By this point, we already had all the information we needed about the deal:
– an opportunity assessment completed by the company
– the ADV investment committee (IC) had met to discuss it
– we’d sourced expert external opinion on the opportunity
– and had a data trail of the whole process
After our meeting in Newcastle (six weeks after initial contact), we agreed to co-invest with BGF Ventures and back Care Sourcer to plug the UK’s care gap. This was one of our first investments and the first investment in Scotland for both ADV and BGF Ventures. Since our first set of investments, we’ve been constantly iterating our process and our internal engine, to deliver deals even faster so we can support our goal to build a digital process for investing at scale.
The only way to get three members of the ADV team to review your opportunity is by completing the two short forms on our website.