ABOUT INVESTMENT

INVESTMENT STRATEGY


Focused approach fully tailored to the target asset class and geography

Incubation focus
  • Leverage Invento’s entrepreneurial ecosystem expertise and approach in the Western Balkans to get early access to incubation opportunities
  • Invento’s extensive web of contacts and relationships in the region will reinforce the cohesion of the entrepreneurial support system within the Western Balkans and create otherwise unavailable early stage opportunities
  • Entrepreneurs in the region largely lack the skillset to bring solid investment opportunities to VC funds, hence, the incubation approach will be a key differentiator in converting projects into investable deals
Innovation focus
  • Strong focus on finding, incubating and investing in innovative solutions
  • Build partnerships and help transfer tangible research results from academia into product lines under development within small companies to foster an exchange of innovation and create new value
  • Developing relationships between Invento’s portfolio companies and larger corporations to facilitate product commercialization and market penetration
Deal flow
  • Invento Capital Partners will be able to leverage its partners and principals “knowledge basis” and vast network of sector contacts in the Western Balkans region to source deals itself, as well as through professional associations, lenders, or research institutes – this will avoid depending on auctions
  • In the Western Balkans region, entrepreneurs are often not able to efficiently develop their innovative startups into companies and need advice on the product commercialization and corporate and financial structure – Invento will provide this support and “incubate” projects, in contrast to purely financial investors

Aiming at creating value through structuring and active management

Investment stage
  • Innovative early stage businesses and, in select cases, early growth stage companies with advanced technologies in need of expansion capital
  • Incubation approach to offer early stage flexibility – Invento will identify opportunities early through its web of contacts, but will select when to deploy capital in order to achieve the most accretive value solution
  • Given the dearth of adequate capital sources in the Balkans, Invento might be able to finance “growth equity” stage business at very favorable valuations, assuming they meet Invento’s investment criteria
Value creation
  • At entry, through favorable investment valuations, creating investment structuring (i.e liquidation preferences), and liquidity-sensitive quasi-equity instruments (i.e. mezzanine and convertibles with PIK coupons)
  • Invento will seek a leading position in the governance of its investments, or careful negotiation of minority investor protection to ensure the control of the entity and retention of the control over the exit
  • Post-investment, by helping develop commercial strategies for expansion, improving the management teams, follow-ons, optimizing the exit stories for a strategic or another more mature stage financial investor
Diversification
  • Invento will manage its portfolio not only to diversify risk across different investments and technologies, but also to benefit from knowledge transfer, management capabilities and sales contacts across its portfolio
  • Geographic diversification across different countries to mitigate portfolio risk in the case of currency crises or any sort of unforeseen political instability in any of the countries under coverage

INVESTMENT CRITERIA