Investment focus
Early growth investment stage
Status. The company is growing fast. Its product / service is in high demand by customers. The initial core management team has been formed. The company has also experienced its first failures. The marketing approach is fine-tuned. The business plan has been solidified with necessary amendments.
Objectives. Ensure market penetration and initial sales volumes, achieve the break-even point, improve productivity, lower product variable costs, build sales and distribution systems.
Financial criteria. Marginally profitable, working business model. Investment size is up to $1 million in one company. Estimated period to reach break-even is no more than one year. Co-investment from partners / management is expected.
Strategic criteria. Opportunity to become a significant player in its segment. Absence of strategic threats (suppliers, buyers etc.). Target customer segments are well-defined.
Growth capital investment stage
Status. The company’s sales are growing rapidly, in line with its assets and liabilities. The company periodically has liquidity problems that make cash flow management critical. Second-level managers are found and hired. Marketing is reaching a new, more advanced level. Complex management systems are in place.
Objectives. Ensure consistent profitability. Significantly increase sales. Expand reach to a national level. Develop plans for international expansion. Ensure sufficient working capital for marketing expenses, account receivables and inventory.
Financial criteria. Positive earnings before interest, amortization and taxes (EBITDA). Size of investment is $2-15 million in one company with a company capitalization of $3-40 million. Investment payback period should not exceed three years.
Strategic criteria. Opportunity to scale and expand the business. Absence of strategic threats (suppliers, buyers etc.). Customer segments are proven.
Where we invest