How to Start Investing in Private Companies

You've found an opportunity you like.

You've taken the initial step from looking for opportunities, to pursuing one.

Now you're wondering, what's next :

• How do I make sure it's a good business ?

• How do I make sure it's a good deal ?

• What are the next steps ?

In this guide, I'll answer your questions, provide clear insights on how we make sure you're making a safe, informed, and profitable investment decision.

1. How do I make sure it's a good business ?

Hi - Amine here.

There are two aspects for that.

The first is making sure you're dealing with good people. The second is making sure you're dealing with a good business.

We take care of the first part, here's how : Prior to accepting any business, we run a background check on the founder and his team. To the best of our ability, we make sure they're honest and trustworthy business people. We do that by running 1:1 meetings, and by asking people in their network. This proceeds any collaboration whatsoever.

We structure the second part in a 3 stages process: Initial Check, Investor Check, and Due Diligence.

a. Initial Check

Before suggesting an investment opportunity to our readers, we run cohort workshops aimed at 3 goals :

1. Understanding the business idea : Things like the problem they're solving, the solution they provide, their business model

2. Understanding the business model : Things like the market & competition, the legal environment, their key partners, pricing & revenue streams.

3. Understanding their strategy : Things like how they get clients, their team credentials, their financials, and their metrics so far.

We structure all this information in an Investment Memo that you access in a dedicated space by clicking the "Learn More" button in the newsletter post.

b. Investor Check

If an investment project gets enough interest, we announce an exclusive investor meeting where I ask the business founder all your questions, in your presence.

We design this meeting to let the founder show his personality, explain his vision, strategy, and answer any questions the audience may have regarding his project.

Prior to the meeting, and after publishing the Investment Memo, we collect investor questions, organize them, and share them with you to make sure we're covering all the gaps in information.

c. Due Diligence

At this point, all interested investors are ready to proceed with the investment. This is where we suggest the last step of this aspect : Due Diligence.

After your consent, we hire a team to go through accounting, tax, and legal documents of the company. The goal is to spot any red flags that may alter the deal, and to eliminate any risks that can put this transaction at risk.

To protect your interest, we share a detailed memo of the findings, with our recommendations on how (and if) to proceed with the transaction.

This due diligence process contributes significantly in providing the right framework for negotiations, business valuation, and the crafting the deal paperwork.

1I. How do I make sure it's a good deal ?

There are 3 aspects to a good deal : Fair business valuation, transparent business terms, and a fruitful founder-investor relationship.

It's our job to satisfy these requirement. That's why :

1. We use our expertise in business valuation, and a shared database of 100s of thousand of transactions to provide fair and transparent business valuations.

2. We conduct thorough due diligence to meet international standards in crafting deal documentation and negotiating fair investment terms.

3. We keep a close relationship with our founders & investors, to keep everyone informed and encourage fruitful collaborations between investors and founders.

1II. What are the next steps ?

If you're not yet subscribed to our newsletter, it's our starting point to receive selected investments opportunities every week, and it's free. I encourage you to start there.

If you're subscribed and want to pursue an investment opportunity, you can access the Investment Memo regarding that opportunity from the "Learn more" button in the newsletter post.

If you've read the Investment Memo and want to ask questions or attend an exclusive investor meeting, you'll be able to access this feature soon on our website.

Until then, if you have any questions please contact me at hello@aminerahmani.me.

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