How we work

1. What we look for in a Start-up
   
   1. a) A unique innovative product created by a great team
   2. b) A product that addresses a clearly understood customer need, which is significant, broad and rapidly growing
   3. c) A released version of the product, which has established a user-base, and demonstrates both a) and b)
   4. d) A well-defined plan for how to generate and scale revenue, with initial steps proven
2. How we invest
   
   1. a) Business case validation
      

      Through initial meetings and the material provided, we assess the Team, the Product and Community, and the Business Plan to determine the overall success potential

   2. b) Defining a joint Business plan
      

      When we find the business case interesting, we continue working with the entrepreneurs with the target of defining a joint Business plan

      This typically happens through a series of meetings where we discuss and iterate the plans. This step has two equally important aims:

      i) To achieve a joint plan that both parties believe in

      ii) To enable both parties to learn how the co-operation functions in practice, so that both parties feel ready to enter into a long-term relationship

      The business plan process normally takes about 4-6 weeks

   3. c) Term Sheet and Due Diligence
      
      

      With a joint Business plan agreed, we aim to agree on a Term Sheet with the entrepreneurs. The Term Sheet states the main principles for the planned investment

      After the Term Sheet has been agreed, we conduct a brief intensive legal, financial and administrative due diligence in order to understand the company and to verify that the information understood during the process until then is accurate

      During the due diligence we also negotiate the main terms of the investment agreement with the entrepreneurs

   4. d) The Investment
      

      With the formal due diligence done, we complete and sign the investment agreement, and become owners in the company

3. How we work
   

   Open Ocean takes an active role in supporting its portfolio companies

   1. a) We assume a strong role in the company’s Board of Directors
   2. b) We help with Community and Business strategy execution
   3. c) We assist with strengthening the BoD and Management team
   4. d) We guide in scaling the company and its key processes
   5. e) We support in structuring and executing follow-on financing rounds
   6. f) We stand available to support the management in day-to-day tricky questions

   Often we agree on growth phases with our portfolio companies. Each growth phase can be determined by certain milestones, and fueled by specific financial resources. As the company moves through the growth phases, Open Ocean aims to bring additional investors on-board to ensure that the company has the right backing when targeting rapid global expansion, and when preparing for potential exit-routes.