Insitech, Incorporated - Commercialization, Military Technology, ARMY Technology, Venture Capital, Homeland Security,ARDEC, Picatinny

In due diligence, CVP will rigorously evaluate the key value drivers for the prospective investment, including the strength of patent protection, the vulnerabilities and competitive advantages of the technology, as well as the ability of the management team to implement the business plan. Typical investment review and due diligence will proceed as follows:

*Step 1 - Preliminary Assessment
Preliminary due diligence will rapidly determine if the transaction meets CVP’s investment parameters. The assessment will focus on the opportunities for the technology. If the Partnership decides to proceed, a team will prepare a discussion memorandum including the investment thesis, terms of the transaction, and key risks to the business. To proceed, the Principals must obtain comfort that: (i) the market for the technology is attractive; (ii) good management with specific relevant experiences is in place or can be recruited to achieve company objectives and generate a superior financial return in the stated timeframe; and (iii) growth opportunities are attainable, and will create a premium upon exit.

*Step 2 - Secondary Due Diligence
CVP will then undertake rigorous financial and operational due diligence. The management team will be identified, ideally participating in the due diligence. The Principals’ deep network of industry and government contacts will be approached for market and technology assessment. Additionally, the Partnership will have unique access to ARDEC to gain first hand evaluations from the experts who test these technologies.

*Step 3 - Intensive Due Diligence and Investment Valuation
In the intensive due diligence phase, CVP will focus on understanding the fundamental drivers of the company’s value, market risks, business development strategies, and exit scenarios. The Principals will conduct reference checks with industry experts. From a financial perspective, CVP will focus on generating detailed projections for the first 2436 months and performing extensive sensitivity analyses on these projections. If the results of the analyses indicate CVP can target a risk-adjusted return in excess of 30% per annum, then the investment team will summarize the results of the investigation and provide an investment memorandum to the Investment Committee.

*Step 4- Investment Committee
The Investment Committee will meet to discuss the merits of each transaction. The Investment Committee may invite the inventors, and their management team (if any), to make a presentation at its meeting. The Investment Committee will suggest further due diligence items for review, provide preliminary approval to proceed with the transaction or decide to terminate further discussions. If preliminary approval is granted, the investment team will prepare a detailed term sheet for execution by the parties.

*Step 5 - Closing Due Diligence
CVP will work with counsel and advisors more extensively to perform legal, IP, insurance, and other specialty due diligence needed to close the transaction and launch the company. CVP will also work with management to develop a detailed post-transaction business plan before closing. The business plan will articulate the consensus corporate strategy and provide milestones that would give an early warning of any issues to be addressed in the business after the investment is made.

*Step 6 - The Investment Decision
The lead deal Principal will present the transaction, with all relevant schedules and reports, in a final Investment Committee meeting. The Investment Committee will be given adequate time to consult with additional outside experts and key management to reach its investment decision. All investments must receive the unanimous approval of the Investment Committee.