Investment Profile

Financial Scope of Club Investments

  • The scope of Club investments runs between $0.5M and $3M.
  •  For each investment, a minimum investment goal of $0.5M – $1M is set in accordance with the level of risk for that investment.
  • The minimum individual investment generally runs between $20K and $30K. The higher the risk level, the lower the minimum individual investment.

Criteria for Initial Screening of Candidate Start-up Companies for Investment

The following are basic guidelines for use in the initial screening of companies that may be suitable for Club members to invest in. These are not prerequisites – they serve as guidelines only. A company that meets most of these guidelines is given the possibility of raising investments through the Club.

List of criteria

  • The company’s leading team is experienced and reliable with a good track record and good likelihood of leading the company to success.
  • The company has already undergone at least one round of financing of at least $1M.
  • The company has annual revenues of around $1M or has signed agreements with sales potential of a similar amount.
  • The company entrepreneurs and shareholders are also participating in the current round of investment.
  • The company has a clear 3-year business plan including a mechanism for returning investments (exit, dividend, etc.)
  • Co-investment of institutional entities, funds, or private investors recognized in the company’s business sector.
  • The company has achieved approval and support from the Chief Scientist.

Main Criteria for Examining an Investment

  • Profile of the company’s management team.
  • Prevailing market conditions for the product or service being sold – market size, competition, competitive advantage etc.
  • Technology
  • Patents
  • Capital raising – previous rounds of investment, participants in the current round, company’s value etc.
  • Purpose of the current round of investment.
  • Financial figures – in-hand cash balances, burn rate, expected date for transition to a balanced cash flow, cash needs until transition to balance, working capital needed etc.

Means for Investment Risk Reduction

  • A high quality screening system.
  • Deposit part of the funds in escrow until a significant milestone is reached in the deal (in some of the investments).
  • Participation of entrepreneurs and shareholders in the current round.
  • Participation of recognized institutions or known private investors in the current round.
  • The investment is by means of a convertible loan.