|
|
|
The Centre's Investment Process
The Centre for Energy and Greenhouse Technologies has developed an investment process that is more consultative than might be experienced elsewhere. This stems from our combined aims of making commercially astute investments and a commitment to reducing greenhouse gas emissions.
The Centre's investment process assists candidates and guides them through the steps in becoming "investment ready".
Once a candidate has made contact with the Centre and submitted an application form (which can be cross referenced to an existing Information Memorandum or Business Plan), the Centre commits to providing feedback within 30 business days. From that point on, the candidate will be in one-on-one dialogue with the Centre working through the identified "hurdles" in becoming "investment ready".
For a candidate to obtain investment finance, their application must successfully progress through the following six step process.
|
 |
Investment Criteria, Segments and Process
|
 |
Investment Criteria
For an application to be considered at all it must meet the following initial criteria:
1. The Investment must fall into one or more of the following categories:
a. Technologies that increase efficiency/reduce GHG emissions of energy supply from fossil fuels (including natural gas)
b. Technologies for new methods and increased efficiency in renewable energy
c. Technologies that increase energy efficiency
d. Technologies for the geosequestration (capture and storage) of carbon dioxide emissions
e. Enabling technologies that store, condition and control output from energy sources and optimise transmission for grid connected and distributed energy applications
f. Technologies that improve energy efficiency in water storage, reticulation, consumption and sewage treatment.
g. New or improved (advanced) materials and processes that facilitate any of the above.
If you are unsure whether your technology meets the above criteria please contact us to discuss.
2. The investment must exclude all of the following:
a. Greenhouse accounting
b. Sequestration of greenhouse gases within the ocean
Applicants with technologies in the above two areas are invited to contact the Centre as we may be able to provide you with appropriate contacts.
3. The investment amount sought from the Centre must be less than A$1M.
Note: The Centre may assist suitable candidates seeking investment finance of greater than A$1M to acquire co-investment or alternative finance from its funding partners and other sources.
4. The investment sought from the Centre's funds cannot be greater than 50% of the total funding required by the Candidate.
5. The investment must be at a pre-commercial stage of development (that is, innovation and technology risk must remain key drivers).
6. The investment must demonstrate a potential benefit to the State of Victoria.
Note: The Centre has completed investments in technologies currently residing outside of Victoria where there are strong potential future benefits to Victoria so if you need clarification on this requirement, please contact the Centre.
Only candidates that satisfy these criteria will progress to the next step of the process.
|
|
 |
High Level Assessment
The second step consists of a high level assessment of the candidate and their application. The basis of this assessment is,
1. Management: skills and experience
2. Technology: development stage and potential
3. Intellectual Property: existing or planned IP protection
4. Investment Opportunity: time period, risk, exit strategy and return on investment
5. Market: existing or planned channels to market
6. Funds required & valuation
Candidates are required to provide the above information in the form of a business plan, information memorandum or similar detailed document.
The Centre analyses the investment opportunity in the context of the above to determine the Centre's funding segment best suited to the applicant.
Candidates with gaps in the above areas will be consulted and provided with a list of the issues and hurdles to be met, and may also be assisted in locating the resources to assist them to proceed to Step 3. The objective is to help as many candidates as possible become "investment ready".
|
|
 |
Negotiations
On the successful completion of Step 2 candidates enter into negotiations with the Centre leading to a Terms Sheet, which signifies the commencement of the Centre's detailed assessment process. The agreed Terms Sheet outlines the main investment clauses which will form the Shareholders Agreement, subject to the due diligence stage being successfully completed. |
|
 |
Detailed Due Diligence
Once the Terms Sheet is signed, the Centre will proceed, in conjunction with the candidate, through the detailed due diligence required to make its final recommendations to its board. During Step 4, the Centre will, either internally or by third parties, complete financial, technical, legal and IP due diligence. Any negotiations with co-investors will be completed at this time. |
|
 |
Approval
On the successful completion of Step 4 (satisfactory outcome from the due diligence), the Centre will determine whether or not to approve the investment. |
|
 |
Agreement Execution and Funding
Following approval of the application and agreement by the Centre, the final agreement is executed and funds are accessed as per the agreement. |
|
|
Further Information
If you require clarification on the Centre's Investment Process please contact us on 03 5122 1941 or email cegt@cegt.com.au
|
|
 |
