In order to preserve full transparency of the activities, the applying method and the investment evaluation process is available to any entity interested in potential investment by PGE Ventures.
PGE Ventures' investment areas
The main investment areas of PGE Ventures are the sectors widely linked to the PGE Capital Group value chain.
Taking into account the expected profile of the involvement and the possibility of providing specific solutions by the Portfolio Company, projects will be sought in the following industries / areas:
PGE Ventures intends to invest in startups in the early and growth phase, meeting the majority of investment criteria:
Investment projects in the early stage of development are characterized by:
- low income;
- short business history;
- emerging team;
- first (beta) version of the product;
- measurable market response.
Investment projects in the growth phase are characterized by:
- significant revenue, but still lack of profitability;
- product matched to the market;
- well-balanced team.
PROCESS OF ASSESSMENT AND SELECTION OF INVESTMENT
Each project will have to go through a process of evaluation, starting from the passage through a screening of investment criteria, going through the negotiations phase and ending with a due diligence and an investment agreement.
Selection process is designed for:
- Startups who have submitted an application;
- Entities that have been invited to cooperate with PGE Ventures;
- All other investment projects that meet PGE Ventures business expectations.
1. Analysis with respect to investment criteria - verification of the formal eligibility.
2. Financial and technological analysis - verification of the investment eligibility of the application is made by the Investment Manager. Business documents, financial model, sensitivity analysis, legal situation of the company are assessed here - if there is a potential lack of documentation, the company will be informed about the lacking documentation.
3. Investment Committee I - the first checkpoint in which the investment committee evaluates the business potential of the proposed project on the basis of the documents provided.
4. Interview - the startup is invited to present and pre-negotiate key investment terms.
5. Term Sheet negotiations - Negotiations are conducted by the startup representatives and PGE Ventures investment department. Negotiations will determine the basic investment conditions, including: deal structure, valuation of the company, the main rights and obligations of the parties. The result of this stage is to prepare a mutually acceptable Term Sheet.
6. Investment Committee II - The second checkpoint in which the members of the Investment Committee evaluate the project on the basis of the investment documentation and decide on future investment under the terms of the Term Sheet.
7. Due Diligence - Due Diligence areas: technological, market, commercial, legal, and report on the key employees in the company.
8. Negotiation of the Investment Agreement - Negotiations of Investment Agreement take place at this stage, starting from the conditions outlined in the Term Sheet. If there is a discrepancy between the Due Diligence and the Term Sheet, then the terms of the agreement may be changed.
9. Investment Committee III - the stage during which a final investment decision is made.
10. Investment - finalizing the investment process in the form of preparation and execution of all formal activities by PGE Ventures to acquire shares and execute the Investment Agreement.