Project Design & Scaling-up - Steinbeis Global Technology Accelerator

Engage only post-execution of a legally binding engagement with the client.

That engagement to be exclusive to us.

That engagement has to for a minimum period of 12 months.

We will review prospective engagements and specific team.

We shall do initial assessment including financing feasibility and get back to the client to continue further or not.

The engagement shall have the following general milestones -

introduction of specific financiers (debt and equity) and commencement of negotiations.
indicative termsheet from at least one financier and proceeding to work to satisfy the conditions precedent (CPs) to financial close (FC).
financial close – success fee (SF) payment proposed rates being.

5% for simple project finance (PF).

7.5% for venture capital (VC) type finance raising.

10% for any difficult or novel type of technology.

Additionally, the client should

(a) pay for any work we need to carry out which they have not already done eg production of bankable financial model, production of information memorandum.

(b) all wholly, exclusively and necessarily incurred internal and third party expenses which we incur both in (a) and in the general work on the finance raising eg travel time, accommodation costs, out of pocket costs for printing documents etc. Generally a maximum amount should be agreed per moth with the client (eg €1000 pm) and any expenditure in excess, whether one off or in aggregate, should require client prior sign off.

We include in the PDA the right at our sole discretion to convert our SF payment into equity in whole or in part in the client company (or any SPV).

Included in the PDA should be a post FC retainer for

(a) investor reporting.

(b) commercial development and marketing assistance to the client (now partner) to market their product/technology/service and secure new business sales and revenue.