Investment Process

 

P/S BankInvest New Energy Solutions' core competence is the thorough selection of the most interesting and promising companies. This investment process is based on the long-standing experience of the BankInvest Group in venture capital management combined with industry specific expertise in the P/S BankInvest New Energy Solutions investment team

During the investment process the companies are screened one by one and the most interesting ones are selected and presented to the Advisory Board. The qualified companies meet with Advisory Board who then gives their comments and feedback to the case. The P/S BankInvest New Energy Solutions Team takes this feedback into consideration in their continued due diligence work on the company. Thereafter, the team makes the final decision whether to invest or not, supported by a formal approval of the BankInvest VC Board.

The companies in the portfolio are tracked closely by the Team and the Advisory Board providing them with advice in product development, production, marketing, management, controlling, financing, product distribution, etc. Furthermore, the Team and the Advisory Board assist companies in achieving the most optimum capital structure. Business development is very important in the process. It is not enough to have a good idea. The crucial difference between success and failure is a well executed business development, which is based on the demands from the market combined with cost effective product offerings.

The process is finished when the Team determines that the company has achieved the targeted return and possible potential. Thereafter, the shares in the companies are sold either to a larger investor or via the capital market through an initial public offering. The investment timeframe is 10 years. Throughout this period the investment will be monitored closely in co-operation with the Advisory Board. General support and continuous dialogue with the management and utilization of the expertise of the board members are a key part of this process. Due to the heterogeneous nature of the companies, exits are planned on a case-by-case basis. In the case of extraordinarily successful investments exits may occur after a relatively short investment period.

In connection with the investment, the possibility of selling has to be taken under consideration. It is therefore of importance that the company at a later stage will be attractive to other buyers - either via the stock exchange or for a company within the business.

Investment Criteria

  • An innovative business concept with a technological and competitive edge over current competing products or solutions
  • A credible and experienced founder or management team
  • A strong technology platform with one or more products in development
  • Clearly defined needs based upon a realistic business plan
  • A significant home market with a world wide potential over time
  • Products and technologies safeguarded by a strong patent portfolio

The company must be able to

  • Develop an experienced management team and organization
  • Prove that its business model will work with cost effective and competitive products
  • Show that it is able to attract required strategic partners
  • Show that it has a realistic operational development plan ready for implementation
  • Obtain early revenue from product sales and generate a positive cash flow within a reasonable time frame.