Step 1: Define Investment Strategies

• Identify the investment strategies that align with Salem Ventures' mission and sustainability objectives, such as venture capital, private equity, impact investing, or a combination thereof.
• Determine the sectors or focus areas that the organization aims to target through its investments.

Step 2: Establish Investment Criteria

• Develop a set of investment criteria that combines financial and impact-related factors.
• Specify criteria such as growth potential, profitability, scalability, alignment with ESG principles, and potential for positive impact.

Step 3: Design Due Diligence Process

• Create a comprehensive due diligence process to evaluate potential investment opportunities.
• Define the steps involved, including financial analysis, market research, and assessment of ESG performance.
• Determine the criteria for engaging external experts or conducting site visits, if necessary.

Step 4: Define Value-Add Approach

• Determine the ways in which Salem Ventures will actively support portfolio companies beyond providing capital.
• Identify areas where the organization can provide guidance and resources to enhance growth, sustainability practices, and value creation.
• Establish mechanisms for ongoing collaboration and support with portfolio companies.

Step 5: Establish Monitoring and Management Framework

• Develop a framework for monitoring and managing the performance of portfolio companies.
• Define reporting requirements, key performance indicators (KPIs), and regular communication channels with portfolio company management teams.
• Establish mechanisms for providing guidance and support based on expertise and experience.

Step 6: Determine Exit Strategies

• Evaluate various exit options, such as IPOs, trade sales, or secondary offerings.