1. The company (with or without potential investors) contacts the Fund and presents its idea, typically by sending a presentation (Pitch Deck);
2. If the Fund is interested in the idea, we continue to communicate with the company and inform it on next steps and actions.
Fund statistics: we have invested in 10% of companies applying to the Fund.
3. The most common actions are as follows:
3.1. Investors submit the application to be included in the list of private investors.
3.2. The Investment Committee approves investors.
3.3. The investors alongside with the company submit documents for an investment.
3.4. The Fund analyses the documents for an investment and performs due diligence.
3.5. The Investment Committee makes a decision to invest or not.
3.6. Contract negotiations – the Fund provides the investors' agreement between the Fund and the investors. An investment agreement is being prepared (it may be prepared by either the Fund or target company) between the Fund, investors, existing shareholders of the target company and the target company.
3.7. Agreements are signed and investment is made.
– The Fund co-invests together with other investors.
– The Fund acts as a „silent investor”
– The Fund transfers its non-material rights to the investors who represent the interests of the fund.
– The Fund has the right to receive all information about the portfolio company free of charge. The portfolio company commits to provide quarterly and audited annual financial statements.
– The Fund exits (by selling or other disposal of investment) from the company not later than the investors with whom it has invested.
– The Fund invests in target company`s equity through new equity issue or in convertible bonds.
– On average the Fund expects to exit the investment after 5-7 years.
– If the target company meets state aid requirements, the Fund’s annual return is limited to 4% or 6% of annually compounded interest. The remaining unallocated income goes to the investors.
– More information can be found in the investment strategy description of a particular sub-fund.
The fund’s return on investment is limited to 4% or 6% of annual compound interest if the target company meets the following criteria:
1. the company is a micro or small enterprise as defined by the SME Law;
2. the company is not listed on a stock exchange;
3. the company is younger than 5 years old (the company has been incorporated and registered with the relevant registers less than 5 years ago);
4. the company has never allocated its profits to its shareholders or members;
5. the company was not established as a result of a merger;
6. the company has not taken over the activities of another company.
The fund’s return on investment is limited to 4% or 6% of annual compound interest if the target company meets the following criteria:
1. the company is a micro, small or medium enterprise as defined by the SME Law;
2. the company has not used De minimis aid.
The Fund is only considering investment from investors, who are approved by the Fund, so if you plan to submit a request for an investment in the future, it is recommended that you apply for the inclusion in the list of Fund's investors promptly. An investor who is not yet approved by the Fund can send documents for an investment, but at the same time he must submit documents for the inclusion in the list of Fund's investors. An investment documents will only be considered when an investor is included in the list of Fund's investors.
The fund only considers requests for an investment submitted by investors who are included in the list of private investors and the company. The fund can only assist company seeking investors by forwarding its request to Fund's investors. If any of them become interested in the company’s offer, they will contact the company directly.
The maximum Fund‘s proportion in the investment round may be up to 70 – 90 %. The Fund‘s proportion in the investment round is decided on a case-by-case basis and may be less than the maximum amount. Important factors considered by the Fund in deciding on the share of an investment are the experience of the investors, investor`s analysis and justification of an investment, a business plan, company management, and others.
In case Koinvest II Sub-Fund invests in the target company operating in the field of smart specialization, the Fund`s share in the investment round can be increased by 10%.
More information about program and its priorities can be found at sumani2020.lt.
Investors may be venture capital funds, their management companies and business angel groups (at least 2 or 3 business angels depending on the investment amount).
Investors must be independent from the target company:
– investors must not be the current shareholders of the target company;
– investors, through related legal or natural persons, must not own 5% or more of the votes or shares of the target company.
A business angel must be financially stable person, must have business and investment experience and intend to participate in the management of the target company and be able to provide it added value (specific experience, business contacts, etc.). Business angels must be of impeccable repute, have no criminal record, and meet other eligibility requirements. A business angel may be both legal and natural persons.
Venture Capital Fund (or its management company) or business angel should submit the Fund documents (including appendices), which is published on the Fund’s website at. The documents also specifies the additional information and documents to be submitted with.
Applications can be submitted by e-mail info@coinvest.lt, by post or delivered personally to the following address: Vilniaus str. 33, Vilnius (Talent Garden Vilnius).
Applications to be included in the Fund’s list of the investors are accepted and considered constantly. The list of the investors may include an unlimited number of the investors and is continuously supplemented. The list is regularly reviewed upon receipt of new information on already approved investors. By decision of the Investment Committee, the investors may be excluded from this list if, according to new information received, these investors no longer meet the requirements for the investors.
Have not found an answer to your question? Contact us at info@coinvest.lt
