Phases of an investment process

1. Receipt of the Executive Summary for the project: Executive Summary is understood to mean a document of no more than five pages which should capture the attention of the WebCapital team and contain the following information:

• Business idea
• Target audience
• Value of the product/service for the target market
• Market size and expected growth
• Competitive environment
• Current phase of development of the product, specifying the additional development needs to be covered
• Necessary investment and purpose of the investment
• Summary of the main financial figures over five years (profit and loss account, cash flow and annual balance sheet)
• Description of the human team and their professional experience

2. Analysis of the Executive Summary in order to identify the value drivers and response to the entrepreneurs for the process to begin (within seven days)

3. Signature of the standard WebCapital confidentiality agreement

4. First meeting with the entrepreneur team. PowerPoint presentation to WebCapital.

5. Study of the project and response to the employers for the process to continue (within seven days)

6. Submission by the entrepreneurs of a complete Business Plan for the project

7. Analysis of the Business Plan and various meetings to look into the business plan in more depth.

8. Valuation of the company based on the result of various methods generally accepted by the financial and business community, such as:

• Discounted Cash Flow (DCF) valuation
• Multiples for comparable companies
• Analysis of other similar transactions

9. Definition and creation of an agreement of investment intentions

10. Presentation and signature of the agreement of investment intentions

11. Legal, financial, tax, employment and technical due diligence

12. Drafting, presentation and subsequent signature of the shareholders' agreement, with the consequent capital increase

13. Monitoring of the operation. Riva y García Private Equity helps the company with value creation:

• Strategic advice through its presence on the management bodies of the company (Shareholders' Meetings and Board of Directors)
• Support through its network of national and international contacts
• Defence of the interests of shareholders in additional rounds of financing of the company. Preferential access to the investment community in the company.

14. Exit. All private equity funds have a set time horizon as at some time they will be obliged to repay the money to their investors. WebCapital's exit from the capital of the investee company will be agreed from the day of entry into the capital. WebCapital, like all venture capital companies, has a temporary outlook which prevents it from remaining indefinitely as a shareholder. By way of example, some of the exit formulas which may be used are as follows:

• Repurchase by the company owner
• Sale to existing partners
• Sale to third parties
• Flotation