STEP 2: Sign Letter of Intent (LOI

FILE NAME LINK USE

Term Sheets Talking Points for Companies

External Model Term Sheets Tool – Term Sheet Talking Points for Pipeline Companies This tool is a primer for companies to learn about the terms that may be used if they make it to a term sheet discussion. Share with companies.

See next column  ANDE training on term sheets for entrepreneurs: LINK  Investor friendly best practices for term sheets in East Africa: LINK  Y Combinator has a Series A term sheet Word template: LINK  Investment Guide Africa resources, including term sheets: LINK

ACTIVITIES

STEP 0: RUN THE GENDER-SMART EXEC’S PROGRAM

Note to Reader: Remember, per STAGE 1, Step 1.F, the RM must ensure the promoters and their management have attended an introductory investment process training, either created and hosted in-house or through RENEW’s PE Investment Seminar training, before advancing through the active pipeline steps. The training should cover: a) the Private Investment Process; b) Term Sheets; c) Company Valuation, and d) the Post Investment Experience. Once the investment process training has been attended, the company should attend RENEW’s GenderSmart Exec’s Program (the curriculum for which is provided as an annex to the SG2X Playbook deliverable). The Gender-Smart Exec’s Program is the main human capital development program for the SG2X Playbook and is the tool that the fund manager uses to develop the capacity of gendersmart middle management of portfolio companies and within the investment firm. The Gender-Smart Exec’s Program should be run no less than once per year. RENEW recommends 10% to 15% of the SGS team’s time is spent delivering The Gender-Smart Exec’s Program training, updating the material and doing on-the-job, implementation coaching sessions to reinforce the disciplines. RENEW recommends the firm rotate trainers to develop the skills of the fund manager’s investment management and SGS team. Everyone at the investment firm should participate in training to reinforce their own learning (the best way to learn is to teach others). All owners and managers of pipeline companies, all new managers hired for portfolio companies, and all members of the investment firm must attend The Gender-Smart Exec’s Program. The Gender-Smart Exec’s Program teaches a common language for the various management systems and disciplines that will be built in partnership with the SGS team at the firm / fund. It

explains what good management looks like, why the management system and discipline are important, and how to develop the management system. The Gender-Smart Exec’s Program should be delivered for two hours, one to twice per a week, preferably in the morning from 8am to 10am. Sessions should be an hour and a half of lecture with 30 minutes of group discussion and questions and answers with the instructor. The Gender-Smart Exec’s Program should be managed by the investment firm’s HR manager and led by a strong trainer that is respected and has experience leading companies (note: this might be the director or a CEO of the investment firm). The SGS and IM teams will also run specific sessions and eventually portfolio executives will rotate into the training to lead sections. If anyone misses a session, they must make up for this session within a week – watch the recorded session and be tested on the material to ensure they watch it. If they get behind it will be difficult for others and the common language will begin to erode within the team. All attendees of the program must take a test at the end of the program and score 80% or higher to be retained by the investment firm and the company. Only those that pass will be allowed to advance into management roles. If the fund manager is looking to keep much of the current SME management team, and the owner wishes to continue to play an active role in the company, then the investment manager should not proceed with an investment until the managers and owners have all attended the Exec’s Program. This is a critical step in the process and if skipped will create problems after the investment closes. The Gender-Smart Exec’s Program integrates gender-smart strategies into all modules, and attendees are brought through a process to understand why making their company gendersmart is part of their growth strategy. This will be run as other steps in the active pipeline are executed.

Outcomes:

● Owners and managers understand that becoming a gender-smart SME should be part of a company’s growth strategy. ● Owners and managers of SMEs understand what disciplined management looks like. ● Owners and managers of SMEs understand the gender-smart management systems they should have in place to scale their company. ● Owners and managers of SMEs understand what the SGS team implements should a company receive an investment from the Investment firm. ● The SGS team gets to know the management team of potential portfolio companies. ● The SGS team learns from the market about during break-out sessions.

Process:

Note to Author: Please refer to Gender-Smart Exec’s Program curriculum included in the annex; the investment firm / fund should develop an SOP for their training unit that includes information such as how to schedule, prepare for and host The Gender-Smart Exec’s Program.