The MVP Funds Due Diligence Guidelines represent a superset of principles. They reflect a set of factors driving the decision making process for an investment of MVP into any high-tech startup company. Similar to traditional financial and technological risks, an investment also always bears risks related to environmental, social and governance issues. These ESG related risks need to be managed adequately to avoid threats against the company and shareholder value. Hence, to us as responsible investors,
identification of ESG related risks is of the same importance as traditional risks. During the DD process an ESG risk profile related to an investment is generated, where Environmental, Social and Governance risks are valued and weighed independently in the following categories:
High: Business activities are very likely to have significant harmful and irreversible environmental (E), social (S) or governmental (G) impact.
Medium: Business activities may result in specific harmful environmental (E), social (S) or governmental (G) impact. However, the impact is small and mainly reversible.
Low: Business activities very unlikely result in harmful environmental (E), social (S) or governmental (G) impact.
The findings of a thorough ESG related Due Diligence will be reported in the investment
proposal and suggesting a risk mitigation strategy.