Your idea

from idea to business

From the first time you contact Danfoss Ventures and until your idea grows into a possible company formation, there are some processes we will go through together.

Screening
First of all we will evaluate whether your idea is within our area of interest and meet our criteria for investment. Important is that you idea is protected or has the potential and possibilities for patent protection. If you pass the first screening we will call in for further meetings.

First meeting(s)
At these meetings we will go through your business case and the material forwarded to us, where we depending on the idea also invite experts from our organization.

Pre-evaluation
After the first meeting and presentation, Danfoss Ventures internal will discuss and evaluate the potential of the idea, verifying risks and opportunities. We will also discuss under what conditions it would be interesting for Danfoss Ventures to participate.

Term sheet
Next step would be to work out a term sheet. A term sheet is a bullet-point document outlining the material terms and conditions of a business agreement. It is preliminary and mostly a non-binding document meant to record the parties' intentions to enter into a future agreement.

Due diligence
Depending on the case and areas of uncertainties (technology, market, resources, organisation), the necessary Due Diligence will be work out. Due diligence is a form of research and good business practice to verify information’s and facts, to understand and quantify the risk of the proposed business.

Prepare for Investment committee
Work out presentation materials and recommendation for the Danfoss Investment Committee.

Approval and funding
The case will be presented to the Danfoss Investment Committee (CEO and C), who has the decisive word in all investments to approve or reject the application.

Agreement and company setup
If the investment committee approves the recommendation without remarks, short time afterwards the company will be established and the money available on the company's account.

Time aspect
The total time from first contact to a company setup is typically 3-6 month, based on the complexity of the case and on the quality of the material we receive from you (- not the quantity).