Investment process

PROCESS

It goes without saying that we are happy to sign a non-disclosure agreement.
The investment process takes approximately two to three months from receipt of the business plan until an investment decision can be made. The process is structured as follows: 
 
Pre-selection


Your business plan will be reviewed according to our investment criteria. Your business plan should contain the following information:

 

  • Product

  • Company and product description

  • Unique selling proposition (USP)

  • Revenue generation model (licensing, sales, etc.)

  • Patents, intellectual property rights

  • Market

  • Market potential and growth

  • Market share

  • Competitors

  • Substitute products

  • Financials

  • Capital need 

  • Intended use of funds

  • Equity stake for investors 

  • Turnover for the current year and forecast for the next years

  • EBIT for the current year and forecast for the next years

  • Number of employees, current and forecast 

  • Management

  • Education

  • Experience

  • Track-record


We use our best efforts to provide you with an initial feedback within two weeks.
 
Meeting / site-visit


If the most important investment criteria are met, we look forward to meeting you and your management team during an on-site visit.
 
 
Extended evaluation using subject-matter specialists 


As part of a continuing evaluation we will – if needed together with external specialists or our board of directors – examine the opportunity in detail. In addition to analyzing the market, products and customers, the competitive environment will be reviewed. Furthermore, the technology and the IPR situation (patents) will be analysed. On the basis of your financing plan a valuation will be performed, which will be discussed with you in detail.
 
Letter of Intent / Term Sheet


To the extent the results of the extended evaluation are positive and provided that the size of an investment and a company valuation could be agreed upon, a Letter of Intent is signed.
 
Due Diligence and Proposal to the Board of Directors of Quantum Ventures AG


Final investment decisions are made by Quantum Ventures AG’s board of directors upon a proposal by the management. As a pre-requisite for such a proposal, a thorough investigation (due diligence) of the company will be undertaken. It is easiest if all required documents are being provided in a data room.
 
Contract drafting, Signing and Closing


After a positive investment decision by Quantum ventures AG’s board of directors, the required contracts – namely Share Purchase Agreement and Shareholders Agreement – are prepared on the basis of the Letter of Intent or Term Sheet, as the case may be, and signed (Signing) by the parties. At the time of Closing the funds are transferred.
 
Support and Creation of Value


As an active investor and shareholder we usually participate and contribute as a member of the board of our portfolio companies. In addition, Quantum Ventures offers direct and indirect support through its extensive entrepreneurial network, which can yield valuable contacts, for example to industry partners, potential distribution channels or production companies. We accompany and support our portfolio company in creating value. Of course we also provide our experience in respect to corporate transactions, be it an add-on acquisition in the light of a buy & build strategy or a potential exit through an IPO or trade sale.