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Frequently Asked Questions
In what kind of company does Innogest Capital invest?
Innogest Capital invests in young companies, usually less than five years old, featuring a high growth potential sustained by differentiated and patentable technologies, products and applications. Once that the company has demonstrated the credibility of its product and the suitability of the business model, Innogest Capital meets the need for funding to strengthen the organization and to build an international market presence.
In which companies is Innogest Capital interested?
Innogest Capital is particularly interested in companies featuring:
- high top-line growth potential;
- a dynamic, honest and competent management team;
- patentable and differentiated technologies;
- products and services in rapidly growing markets;
- a development plan starting from the Italian market and expanding internationally
What are the sectors of interest for Innogest Capital?
Innogest Capital invests in the most promising companies based in the north of Italy and active in the following sectors:
- Multimedia and Web technologies
- Information and Communications Technologies (ICT)
- Biomedical devices
- Advanced Mechanics
- Energy
- Innovative and high value-added Service.
What is the geographical focus of Innogest Capital?
Innogest Capital primarily invests in enterprises located in Italy. Furthermore, Innogest Capital from time to time may be interested in funding companies based abroad but with major and significant activities in Italy.
What is the average size of an investment funded by Innogest Capital?
Innogest Capital invests in Early Stage companies with the acquisition of equity shares through a capital increase procedure. Typical funding is between 200,000 and 2,000,000 Euro at the time of first round. Over the lifetime of a company, Innogest Capital can deploy up to 8,000,000 Euro in a single company.
What is the maximum share acquired by Innogest Capital?
Innogest Capital typically acquires a minority stake, with preferred rights and representation in the Board of Directors of the company. The participation may range between 20% and 49% of the equity.
How long does it take for Innogest Capital to evaluate an investment opportunity?
The evaluation process for an investment opportunity is divided into several steps, from the initial technical analysis to the formal due diligence. Final decisions are taken by Innogest’s Board of Directors, which takes the ultimate investment decision. Approved investments are typically finalized between three to five months after the first contact with the company.
How long does Innogest Capital retain its shares in the investee company?
Innogest Capital guides the investee company through all aspects of its initial growth phase, until it has reached full financial autonomy or until it has obtained further financing in the form of risk capital. On average, Innogest Capital holds its stake in the company for about 3 - 4 years, which is in line with the market average of venture capital investments.
What kind of support is provided by Innogest Capital to the invested company?
Innogest Capital’s support is not limited to equity. The success of the company is dependant on the entrepreneurial team ability to execute and Innogest is NOT a substitute to the entrepreneur. Still, Innogest Capital assists whenever possible the investee company and helps the entrepreneurs to:
- define and implement development strategies
- find and develop new customers and commercial partners
- go international and open new commercial channels
- recruit top managers, whenever necessary, to complete the team.
Can Innogest Capital provide loan financing as well?
No, Innogest Capital does not provide any sort of debt. However, Innogest Capital can assist investee companies to raise debt capital, exploiting its network with leading commercial banks.
What are the main advantages for a company backed by Innogest Capital?
Innogest Capital is a lead-investor in Italy, the largest Early Stage fund currently active on the territory. It acts both as the only investor and as the leader of a group of co-investors. Innogest Capital can provide a strong network of co-investors, both at the national and the international level, for follow on rounds. Also, Innogest can provide an extensive network of managers and selected service providers.
Are there dis-advantages in having Innogest Capital as investor?
There may be disadvantages if the entrepreneur is not ready to openly discuss any issue of the company; if he/she is protective of its own area of influence and despice any external input; if the entrepreneur is there to build a family-based company; if the entreprenuer is not ready to take full responsibility of its plan or relies too much on the investors; or if there is not enough ambition to become a global player.
What are main selection criteria considered when evaluating an investment opportunity?
In order to evaluate an investment opportunity, Innogest Capital takes into account several key factors to understand if the level of risk is adequate with respect to expected return. The following criteria are considered:
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experience, track-record, ambition, honesty and openess of the Management Team
- target market size and growth rate
- technology, products and competitive advantage
- stage of development of the company
- exit potential and expected returns.
Is Innogest Capital’s investment compatible with other financial facilities and incentives?
Yes; an investment by Innogest Capital does not limit access to other forms of financing.
What documents are required in order to submit an investment opportunity to Innogest Capital?
To submit an investment proposal, send to info@innogest.it an Executive Summary of your Business Plan. We do not look for formal and lengthy documents, but rather for synthetic documents that go straight to the point of why a business is attractive. Please, include the following information:
- Short description of the company and its products / services;
- Clear statement of the compelling value proposition and a synthetic analysis of the target market;
- Description of the main distinctive features of the company business and technology, with a benchmark versus relevant competitors;
- Management team description, with information on key managers, their previous (entrepreneurial) experience and core competences;
- Honest and candid assessment of potential roadblocks, shortfalls, gaps;
- Summary of the main economical and financial projections (Profit & Loss, Balance Sheet, Cash Flow and Investment Plan);
- Short description of the financing needs (equity and debt) and of the use of capital plans.
How can I get in contact with Innogest Capital?
To request further information, please contact Innogest Capital via e-mail at the following address: info@innogest.it
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