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.