Management of the target allocate full time to company activities, they have necessary experience and management skills. Management is ready to cooperate with the Fund Manager and Business Angel.
The Fund will acquire the new issue of the company or the derivative securities (convertible bonds). The Fund prefers investing into acquisition of the new issue, as the new issue:
- improves company’s balance sheet;
- expands company’s borrowing capacity;
- founders of the company earn return on investments together with the Fund and Business Angel.
The Fund will invest into the companies, where the sufficient management control can be reached together with Business Angel’s stake, the aim is to acquire up to 50% control of the company. The size of stake depends on company’s value and on agreement with founders of the company.
Owners of the company will have an option to buy back shares from the Fund and Business Angel. Buy back terms will be agreed before the investment.
The Fund seeks to invest into companies, that:
- are generating revenue for at least 1 year, annual revenue are up to EUR 50 mio and number of employees is up to 250;
- necessary investments are up to EUR 1 200 000;
- owners and management of the company have clear business expansion plan to export markets;
- company is established in Lithuania;
Owners should be ready to cooperate with the Fund and Business Angel in management team (Board or active Shareholders Counsel), to share actual financial and business information and future returns.