The investment process
An investment in eQuality Venture generally goes through three phases:
1. Evaluation and investment
2. Active ownership
3. Exit
3. Exit
The first phase in the investment process consists of an active search for possible investments, a selection and an analysis of the incoming investment suggestions.
Investment suggestions that come to the attention of eQuality Venture are analysed by an investment manager who decides whether the proposal is sufficiently
interesting for a continued evaluation.
The completed analysis and due diligence will result in a basis for decision in which the project is evaluated against the investment criteria of eQuality Venture. The basis of decision must consist of a business plan, an evaluation of the entrepreneurs and market potential, a cash-flow analysis, business structures and an exit strategy.
The basis of decision is presented to the company investment committee by the responsible Investment Manager. The investment committee consists of Peter Martinson,, Bengt Andersson and Bengt Forsberg. Investments or additional investments that are smaller than 20 per cent of the available company investment capital requires a majority resolution in the investment committee. Investments that are larger than this amount must go through the company board. Furthermore the board must on a regular basis be informed of all considered investments.
At the time of the investment a shareholder agreement is established that, under all circumstances, consists of a business idea, the partners rights and obligations, guarantees, regulation of secrecy and possible conditions for share issue.
The average holding period for investments lies between 2 to 5 years and the initial investment normally amounts to 1-10 million SEK. Successive additional investments often take place to be able to commercialise the product or service. eQuality Venture strives for owning shares of 20 to 49 percent in the portfolio companies but both larger and smaller amounts may exist.
The completed analysis and due diligence will result in a basis for decision in which the project is evaluated against the investment criteria of eQuality Venture. The basis of decision must consist of a business plan, an evaluation of the entrepreneurs and market potential, a cash-flow analysis, business structures and an exit strategy.
The basis of decision is presented to the company investment committee by the responsible Investment Manager. The investment committee consists of Peter Martinson,, Bengt Andersson and Bengt Forsberg. Investments or additional investments that are smaller than 20 per cent of the available company investment capital requires a majority resolution in the investment committee. Investments that are larger than this amount must go through the company board. Furthermore the board must on a regular basis be informed of all considered investments.
At the time of the investment a shareholder agreement is established that, under all circumstances, consists of a business idea, the partners rights and obligations, guarantees, regulation of secrecy and possible conditions for share issue.
The average holding period for investments lies between 2 to 5 years and the initial investment normally amounts to 1-10 million SEK. Successive additional investments often take place to be able to commercialise the product or service. eQuality Venture strives for owning shares of 20 to 49 percent in the portfolio companies but both larger and smaller amounts may exist.