A level playing field with co-investor(s)!
Under the law and according to the principles of the European Union the Development Fund must involve an equivalent amount of private capital into its investment projects. If a co-investor is not found, the Development Fund cannot invest into the given business project. The presence of either local or foreign co-investors demonstrates that the Development Fund's investment decisions have been market-based and funds have been placed into reasonable projects.
The entrepreneur definitely has the final say when it comes to choosing the co-investor - the investor's capability of making a practical contribution besides providing finances may prove to be the deciding factor when making such a decision.
Another goal achieved by engaging private investors is to disseminate venture capital financing practices and attract to early stage business projects wealthy private persons and venture capitalists who commonly invest in later stages. Finding co-investors for risky business projects is a complicated task, therefore we pay special attention to finding co-investors and working with them.
Why invest jointly with the Development Fund?
We have a decent deal-flow;
Numerous remarkable business plans find their way to the Development Fund;
The Development Fund studies the background of the companies, analyses their business plans in detail and, if necessary, performs due diligence;
We involve investors on equal terms;
More than one private investor can be involved in an individual investment;
Co-investors can hold active negotiations with the target company;
The Development Fund guarantees the investor at least one seat on the supervisory board of the investee company.