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Investment policy

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The project should make people's lives easier and creating/developing a digital platform should be possible for it

The project must have started operating in the market (Post-revenue)

Despite our long-term partnership goals, the project must have a clear exit strategy

What We Do

The project must have significant potential for expansion into the global market

The project should require an initial investment from 50,000 to 500,000 GEL

The project should be managed by an established team

The project should be promising a special public good

1

Ensuring a steady stream of revenue-generating start-up businesses

We take care of creating a steady flow of post-revenue tech startups for our investors. For this purpose, we use on the one hand our own platforms and have direct communication with interested businesses and on the other hand, we use strategic partnerships with various private and public institutions.

3

We use EBITDA Multiplier, DCF analysis, Net Asset Value / Book Value, or Market Value to determine the value of the investment project.  We choose the method based on the common goals and interests with potential partner companies.

Evaluating Investment Project

2

Conducting Due Diligence

In about 3-4 weeks the fund's management team will examine the portfolio company's:

  • Business model 

  • Managing team and staff

  • Strategy and Action Plan 

  • Organizational design, chart and appraisal systems

  • Business processes and procedures

  • Financial and operational indicators 

  • Technological assets

  • Legal risks 

During the due diligence, it is important for us to see the benefits of working together to help increase the value of the share.

4

The final decision on investing in the company is made by the Investment-Credit Committee. In case of a positive final decision the following documents are signed:

  • Partnership agreement;

  • Share purchase agreement; 

  • New version of the charter of the partner company: (registered in the Public Registry), etc.

The above mentioned allows the use of corporate governance tools in the partner companies.

 
 

ფონდის

 

Making a Final Decision

5

Ensuring Surveillance

As soon as a partnership agreement is signed we start supervising the strategic and financial performance of the company. The purpose of supervision is to achieve the predefined goals in each company where we have an interest and to realize their maximum potential. Depending on how well the company is following the mutually negotiated strategy and plans, we use the following surveillance strategies:

  • Passive Supervision

  • Active Supervision

  • Turnaround Management

6

In close cooperation with the founding parties and the existing management, we work for clarification/creation of partner companies' management systems including:

  • Mission and Vision

  • Strategy and Action Plan

  • Organizational Design

  • Appraisal and Evaluation systems

  • Business Processes and Procedures 

  • Organizational Culture

  • Boards / Collegiate Formats and Accountability Mechanisms;

Providing Organizational Support

7

Providing Marketing Support

For the portfolio companies, we provide unprecedented access to marketing competencies and resources, through strategic media partners.

8

Providing Technological support

Combining tech startups from different specialties together under the same portfolio, we create the opportunity and encourage collaboration for synergic effects.

9

Ensuring Funding and Financial Supervision

The type and amount of funding is determined individually for each project. Funding has a form of capital contribution and if necessary, additional loans can be provided. ​​ We introduce certain performance indicators/financial ratios through which we track the financial performance of the companies throughout the partnership period.

10

Exiting

We favor agreeing on the target exit strategy with the founders of the portfolio company from the very beginning. The exit strategy can be one of the following:

  • Agreement with the Partner can be made, through which the partner gets the right to redeem the share under the agreed terms after a set time period;

  • A merger can be made, thus the partner company shares are transferred to the larger, interested company; 

  • Investors may be introduced to the partner company so that fund-owned shares be sold to the third  individual; 

  • Initial Public Offering of the company shares might take place;

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