Investment strategy

Investment process

After receiving investment proposal, the Fund manager will check if it satisfies the main investment criteria (see Investment criteria). When the proposal satisfies the main criteria, the Fund manager will initiate meeting with the founders of the company and will discuss in detail its business plan.

When business plan meets Fund’s return on investment criteria and management team is strong enough to implement business plan, then:

  • Negotiations with business owners are being held, at the same time the Fund manager is looking for Business Angel,
  • Parties sign Term Sheet disclosing the main investment terms,
  • Legal and financial Due Diligence are being performed,
  • Negotiations about final terms of investment,
  • Investment, Shareholders, Share Purchase and (or) Convertible bonds purchase Agreements are signed.

Activities after acquisition

The Fund manager and shareholders establish Board, consisting of Business Angel, representatives of the Fund manager and shareholders. The Board and management of the company meet on regular basis to discuss the results of business plan implementation. Partners take decisions about business expansion strategy, its changes and implementation tactics.

Investment areas

Investment targets are all the production and service companies with some exceptions (see „Exceptions“).

The priority will be set on the companies that operate in Lithuania and focus their activities to export markets.

Priority sectors are:

  • Innovative technologies, environmentally-friendly, research-based technology and innovation developers and manufacturing companies,
  • Production of high added value components,
  • Economically viable companies operating in traditional industries,
  • Service and business solutions.

The Fund will invest into companies the value of which can be significantly increased by:

  • Modernization of manufacturing,
  • Development of new product or service,
  • Improving business effectiveness and implementing expansion,
  • Acquiring and retaining licenses and continuing scientific research activities, having commercial potential,
  • Strengthening balance sheet of the company.

Exceptions

The Fund will not invest into the companies that are in:

  • Primarily engaged in the manufacture, supply or trade in arms,
  • Production of  tobacco and alcohol,
  • Cazino activities or other gambling services,
  • Genetically modified products manufacturing and sales,
  • Fishery, aquaculture and agricultural products,
  • Consumer finance and other close to banking activities,
  • Real estate development,
  • Dismantling and construction of nuclear power plants,
  • Airport infrastructure, with the exception of installation of environmentally-friendly technologies,

The Fund would also not invest in companies that are in serious financial difficulties, and companies whose activities are polluting the environment, which is detrimental to health and safety.

Investment criteria

  1. The company is active in the market for at least 1.5 year, production or services are produced (created) in Lithuania, necessary investments is up to EUR 1 200 000,
  2. Owners and management of the company have clear business expansion plan oriented to export,
  3. Owners are ready to cooperate with the Fund manager and Business Angel, work together in strategic management team, share actual financial and business information and future returns,
  4. Future returns and relevant risk level is acceptable to Fund and Business Angel,
  5. The activities of the company are included in the Fund’s Investment List (see “Investment Areas”).