Will the fund wish to take over our company?

The capital relationship is like marriage. It does mean certain limitation of independence, but success is conditional upon good cooperation by both parties. Without it, everybody loses. The motivation of the team, which is only assisted by the Business Angel Seedfund, is a condition of dynamic growth of the company's value. Also, provisions applied by our fund in investment agreements specifically define the principles of selling shares/stock in the future. It is a sort of 'prenuptial agreement'. They guarantee that should the Business Angel Seedfund leave an investment (frequently by selling to an industry investor), partners may join the deal. The target is a high profit, but generated together.

Are you interested in existing companies, or those which are only being established?

It is certainly easier to take a risk and invest in a company that already exists, has created an efficient team, or has at least the initial version of the product. However, we also admit ideas, and as a matter of fact, one of our projects was based on a mere idea, a business plan. The team behind it, however, was very competent, and had certain market achievements.

Do you guarantee freedom of making decisions to management boards of portfolio companies?

Firstly, we get involved in a project only if we have a common vision of development agreed upon with its authors. If there is no such common vision, the investment does not take off. Secondly, with respect to impact on strategic decisions, i.e. decisions on large purchases, strategic alliances, capital increase, entering the stock market, etc., the fact is that we cooperate and decide together. Obviously, the fund wants to assist on the one hand, but on the other hand, it wants new companies to be as independent as possible. The fund is quite limited in terms of staff so ongoing involvement in operations of each company would be very difficult. That is why we care for teams that are able to act on their own to a high extent and need only be helped when making key decisions.

How many shares do you assume in companies you invest in?

Until now, in five cases it has been below 50% (from 25% to 43%). We have majority shareholdings in two companies, but the teams there have additional options. The division results from measurement of the entrepreneur's contribution and the fund's contribution. In some cases we deal with starting up persons who have little experience in a market, or the capital we need to bring is very high compared to the scope of works already performed. Then, it is justified that the fund takes a majority package. We guarantee that the founders receive regular remuneration and a bonus being from ten plus to several dozen percent of the company. In such cases, it is a very attractive solution. We always care about teams being strongly motivated to build their business. That is why we want entrepreneurs to dispose of a large package, and to have a chance to sell it.

Why is it better to tie oneself to the Business Agent Seedfund rather than an industry/strategic investor?

When an entrepreneur ties themselves with an industry investor, they immediately deny themselves an opportunity to leave the investment when the value of each share is equivalent to several or several dozen times the annual profit falling to them. The purpose of involving a strategic investor in a company is consolidating one's core activity, rather than realizing capital profit (arising from an increase in the acquired company's value). As a rule, a sale only takes place when the project is not a success.


8 lipiec 2011

Business Angel Seedfund invests in SmartNet Research&Solutions and the Fanpage Trender project

Business Angel Seedfund invests in SmartNet Research&Solutions and their newest project Fanpage Trender – analytical tool for Facebook marketing.
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20 kwiecień 2011

SiGarden at the OGTF in Amsterdam

SiGarden was represented at the 2nd International Oil and Gas Technology Forum (OGTF) in Amsterdam, the Netherlands.
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Our portfolio


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