The InvestLife Ltd. Co., as an "investment boutique", has gained remarkable experience in organising and settling transactions of 0,5-3 million USD.
In addition to the organisation of bigger buyingouts of 10 to 20 million USD value, we do not reject - especially if we invest our own capital - investments of small volume either, even down to a bottom limit of 20-50 million HUF (100000-200000 USD).
- We prefer if a settled company with some years of history is searching for fresh capital for its developments and market expansion.
- We only can examine so called "start-up" companies if our potential founder partner is an experienced manager with serious past and trustworthy references.
- It does not fit into our company politics to risk our own capital only, we always require a significant cash participation of our investing partner, too!
- We do not accept investments in activities that are not compatible to our moral value judgement, furthermore, we do not have any experience in agricultural investments.
- But we are familiar with investments in industrial production and specific service companies.
- If we gain majority stake, we never act like simple passive financial investors, but we place our company management and managing skills at the interest of the mutual firm.
- If the division of risk, the volume of the capital invested into one branch of industry or business sector require, we can link up our own invested capital with capital of other investors, too. In these cases, we also accept minority stakes, but the impact of similarly acting values at risk together still has to be determinant.
Exit ? You haven't even entered yet !
In his witty article, which was published in the 2002 yearbook of the Hungarian Venture Capital Association, Toby Mansel – Pleydell, the ConCorde Aquila manager partner is analysing the exit strategy, one of the most important guidelines of venture capital investors.
Stock option plans
If location, location, location is a property developers mantra, venture capitalists would surely place equal emphasis on the role of management. Thus, in structuring a transaction, venture capitalists need to ensure that gifted managers remain in place and are incentivized to build shareholder value once the investment is completed. Investors employ a combination of punitive and reward measures to achieve this end.
The process of attracting investors
Hungarians are thought to be innovative people with good ideas, yet entrepreneurs often find obtaining capital difficult. Analysing certain reasons of this paradox, this article concentrates on the investment process from the entrepreneurs point of wiew, and highlights certain key, although often neglected aspects.
Protection of the minority rights
The parties to short to medium term equity related arrangements, such as venture capital deals, will often negotiate provisions dealing with their exit strategy. In order to create an opportunity for the sale of all shares int he target company on an exit and in order to be able to protect the interests of both the majority and the minority parties, so-called „drag-along” and „tag-along rights” are often used.