What exactly do you mean by a traditional industry?+
Put simply: the company would work even without technology, just not as well. If it has nothing to sell without technology, it is a startup, and that is a better fit for VC funds. We look for companies that do not have to become unicorns but do great work in their region and can keep growing. Yes: a private school with a different approach to teaching, a chain of veterinary clinics, a toy retailer with its own brand, a furniture maker, a bakery, a car repair shop or a cleaning company. Rather not: a mobile app, a SaaS platform, an online marketplace, fintech, crypto or biotech.
Is an e-shop a traditional business?+
Yes, if it sells products with proven demand. An e-shop is a sales channel, not a tech product. We do, however, prefer businesses that have another sales channel besides the e-shop, such as physical stores, market stalls or wholesale. A good example is Hugo chodí bos from our portfolio, which combines physical stores with an e-shop.
What about a manufacturer that develops its own products?+
Yes. Developing new products, collections or recipes is a normal part of manufacturing. It only doesn't fit when the company's success depends on long and expensive research, such as a new drug or deep-tech hardware.
A software company selling to traditional businesses, e.g. a booking system for hair salons?+
Probably not. Even if the customers come from traditional industries, the product is software and the company works like a tech startup. VC funds are a better fit for such companies.
And a chain of fitness centres with its own app?+
Yes. The business is fitness and the app is a tool that improves the customer service. That is exactly what we mean: technology as a tool, yes; technology as the product, no.
How much can you invest?+
Up to EUR 1M. The exact amount depends on the company's needs and the stake we agree on. The investment can combine growth capital, a partial buy-out or financing of seasonal swings.
What if I need more than EUR 1M?+
If the business fits us strategically and in other respects, we can syndicate with other investors and invest a larger amount. It is decided case by case.
What stake do you take?+
A significant minority (30% or more) or a majority stake. We prefer the founder to stay in the company and share in its further growth, but in specific cases we can also operate without the founder.
Does the company have to be profitable?+
Ideally yes, or it should have a clear path to break-even. We are not afraid of companies that are not yet profitable and need help getting there. We do not finance companies with no revenue.
What if I don't have paying customers yet, but I have a great product?+
Unfortunately, in that case not yet. We need the company to already have some revenue. We recommend approaching angel investors first and getting in touch with us at a later stage.
Will you run my company?+
No. You keep running the company. We are there for the important decisions, help with strategy, numbers, sales and management, and expect open collaboration and regular reporting.
How long do you stay and when do you want to exit?+
We typically work with a horizon of around five years; in specific cases it can be longer or shorter. We agree on the exit strategy right at the start, including the timing and whether you, as the founder, exit with us or not.
What does the exit look like? Do I have to exit with you?+
We can exit together, and in that case we will help you get the best terms. We know how to do it. It can be a sale to a strategic buyer or a financial investor (a fund). If you prefer to stay in the company, we can also sell just our stake. A buy-back of our stake by the founder is also an option. All of these options are on the table and we will go through them together.
Do you invest outside Czechia and Slovakia?+
Yes, across the whole CEE region from the Baltics to the Balkans. Our primary focus, however, is the Czech Republic and Slovakia.
Is it a problem if there are already other investors?+
One or two other shareholders are fine. Companies with many existing investors and a complex ownership structure are not a fit for us. Our minimum stake of 30% or more also has to be taken into account.
Can you buy out my co-owner?+
Yes. Buying out an existing shareholder is one of the situations where we are happy to help.
How long does the whole process take?+
We read every project and get back to you. If it makes sense, we meet. The length of due diligence and negotiations depends on the complexity of the company, usually several weeks to a few months.
What happens with the materials I send you?+
We treat all materials confidentially and use them only to evaluate your project. If you ask us to, we will delete all materials after the evaluation.