What is EonTech I and what is EonTech Ventures?
EonTech I (or EonTech Fund) is the European venture capital initiative managed by EonTech Ventures S.A., a venture capital management company based in Luxembourg.
How large is EonTech I and who are the main investors?
EonTech I has completed a first closing of commitments in July 2001 and is currently in the process of raising further funds to a Euro 50 million target by June 2002. Please click here for a list of the main investors so far.
What is EonTech I main investment focus?
EonTech I will invest in the European technology industry, with a special attention to the English, French and Italian markets. Click here for a description of the investment areas we aim to focus on.
What is the typical size of the companies in which EonTech I invests?
Our typical investment size is between Euro 1-8 million, depending on the stage of growth, on the needs of the company, on the presence of other investors, etc.
At what stage does EonTech I invest?
As a value added investor, EonTech Ventures prefers to invest in companies where we can work along side entrepreneurs to help them develop their business. As a result, EonTech Ventures aims to invest in independent privately-held companies (i.e. companies not yet listed on a stock market). EonTech I will target companies seeking start-up, development and, to a lesser extent, seed capital.
How long does the investment process take?
EonTech Ventures receives several business plans each week. Nevertheless we aim to review and give feedback on every plan we receive. When a plan makes it past our initial screening, a meeting is usually scheduled with the entrepreneurs.
Overall, it usually takes between three and six weeks from the time we first meet a company submitting an investment proposal to the official go-ahead.
What is the typical process after you submit your business plan to EonTech Ventures?
Initially, we conduct an in-depth analysis, during which we review (in one or more meetings) target market, products or services, competition, business strategy, management team and organization, financial statements and financial projections, funding requirements and timing.
If we still consider your business attractive, we will issue a term sheet containing the main elements of the shareholders agreement that will be signed later.
Once a term sheet is accepted by both parties, we may conduct a more intensive due diligence including interviews with competitors and other partners, reference checks for senior management, etc. (See Screening Process)
What does due diligence entail?
Due diligence is the process through which we make a careful examination of your business, including profiling key current and future customers, reviewing strategic partnerships, verifying business and personal references, and interviewing the management team. You can expect that this will include your detailed business model, industry analyses, reference and contact lists, and other items relevant to your business. After meeting with you and your team, we will provide you with a list of items we would like to explore further.
Does EonTech Ventures get involved in the management of a company?
At EonTech Ventures we provide assistance when it is requested or needed, but we do not run companies. We have opinions and we do not hesitate to make recommendations. In any case management is responsible for running the company and making decisions.
What factors will influence investment decisions?
While we recognize that there is no single determinant of success, our investment assessment typically focuses on three core areas the size of the market, the capabilities of the management team, and the differentiation of the company’s products and ideas. We are also influenced by the interactions we had with the entrepreneurs during the decision making process.
What is EonTech Ventures’ role after an investment is made?
It can range from intensive involvement in an early stage company to a far more detached role once the company has become mature. In an early stage company we tend to be very involved with key hiring decisions, major changes of strategic direction, company positioning and financings. The involvement becomes strong again during the divestment process.
What type of exit strategy do you prefer?
We are attracted by IPOs, but are open to other positive strategies, such as acquisitions, deemed appropriate to the situation and desired by company management.
What makes EonTech Ventures different?
Key differentiating factors are:
• Strong Advisory Board and extensive network of contacts: EonTech Ventures can leverage its extensive network of contacts acquired during a 20 year technology and business tenure of its partners
• Pan-European strategy and competencies: our presence and contact network in various countries can help your company develop a Europe-wide strategy
• Lean structure and process: our lean and flexible team can cope with your tight agendas and financing schedules, with a fast decision making process and a direct senior hands-on involvement in every portfolio company
• Entrepreneurial attitude and friendly approach: EonTech Ventures itself is the result of an entrepreneurial effort
• Proven business and technology competencies: EonTech Ventures is not a pure financial investor, but adds value with several years of experience of its partners in the European business and technology environment