After the first contact between IFU and the Danish company, the actual collaboration begins.
The original business idea has matured and is clearly stated. Focus is now on business strategies as well as the managerial and organisational challenges. The conditions in the proposed investment country are also discussed, and the practical and legal issues dealt with thoroughly.
In this phase, focus is also on sustainability, including environmental, social, and corporate governance concerns.
Parallel to this, funding models and draft investment agreements will be discussed. It is agreed which type of funding IFU will contribute with and how the distribution will be, for example between share capital and loans.
At the same time, a visit to the partner company is typically conducted, usually combined with a visit to the proposed investment country.
This phase typically lasts around 5-6 months, but it can be completed much faster if the Danish company has experience in establishing business abroad or has already completed investments with IFU.
This phase could also take longer if for example political hurdles arise in the country of investment.