Approach

Investment approach

Invest only in businesses with proprietary products, scalable to large end markets
Focus on innovative technologies with capacity to disrupt incumbent business models
Diversification of investments across enterprise applications, infrastructure software, web media and data services
Strong ability to build client-focused sales organisations for each investee company, covering US, EU and ME markets
Exploit historical lack of equity financing for IT businesses in Eastern Europe
Enable company development through a network of global industry executives, investors and partners
Aligns interest with founder’s interests

Investment case

NEVEQ seeks above average investment returns by being the first institutional investor in a stable and growing region with abundance of entrepreneurs, world-class technology skills and historical lack of equity finance. Our strong access to deal flow and rigorous selection process provides the Fund with opportunities to invest in innovative businesses and build competitive immunity. These technology assets and the competitive levels of operating cost present strong value proposition. NEVEQ pursues building of four core components and strengths in the portfolio:

Leverage the availability of a high number of innovative entrepreneurs with world-class technology skills
Secure experienced managers who contribute through their network, expertise and operational skills
Favour core management teams with a high level of integrity and personal involvement of the founder(s)
Invest in companies benefitting from local low development cost, with potential, ambition and determination to become significant world-scale players in their specific markets

Investment principles

First to market
Long investment cycle
Stringent investment criteria
Focus on customer benefit
Large end market and low OPEX (operating expenses model)
Innovation and disruptive capability

Investment focus

NEVEQ focuses on technology companies operating in high growth market segments such as:

Applications software: business analytics and process management
Infrastructure software: core technologies and industry - specific engines
Web and mobile applications
Web media platforms
Data management and data hosting

Investment process

NEVEQ’s investment process is a combination of a rigorous in-depth analysis including a process of verification of the business assumptions, formulation of unbiased judgment of the technical value of each investment proposition as well as appraisal of its long-term risk return profile.

A thoughtful 360° due-diligence examination is core to our investment discipline and philosophy. We are committed to selecting companies with the right balance of innovation, market and investment attractiveness for our portfolio.

Investment criteria

Leadership potential within market segment
Proven management team with entrepreneurial experience
Large end market globally
Product competitive advantage
Innovative technology and intellectual property with long term potential
Focus on cash flow generation

Once a company becomes a part of NEVEQ’s portfolio, we actively participate in the business strategy implementation process. We support and further collaborate with the management in order to help them to navigate in the growth phase and forge them as a strong leader in their expansion to global markets.

Investment size

The Fund provide early through expansion capital, investing equity from $250,000 to $5million and supporting established business with an appropriate go-to-market strategy. NEVEQ professionals leverage their our own principal experience in building and growing companies, software engineering expertise in target segments, extensive network of global contacts and fund-raising capabilities to help start-ups become robust businesses.

Exit strategy

NEVEQ aims to realize investment returns primarily through exits to:

Strategic buyers seeking new product capabilities and access to a region with strong resource advantages
Financial buyers with industry expertise
Public equity markets