1. Loss-making companies. The fund is not considering investment in mature companies with negative cash flow, even if an attractive price is provided.

2. Long payback period. The fund is not considering projects if the estimated investment payback period is longer than three years.

3. Non-operating businesses. Incomplete projects that have not yet achieved the break-even point and are still in search of a profitable business-model are not in line with the fund’s strategy.

4. 100 % buy-out of company. The fund will not buy out the company from its founder completely, even if he / she is ready to continue working as a hired manager. By investing in a company, the fund makes a bet on the entrepreneur’s talent and vision for the company’s future. The interests of both sides are best synchronized only when the entrepreneur maintains ownership of a significant stake in his / her company.

5. Cash-out. The fund expects that capital investments will be used by the entrepreneur for the further development of the company. If the entrepreneur strongly believes in the bright future of his company, then it is very likely the best investment for his own funds.

Note: There might be some exceptions from the above-mentioned policies in cases where the parties identify a deal structure which allows the fund to expect the targeted return and / or limit its risks.