Investment process – here is how it works
Almi Invest is contacted by about 800-1,000 companies that would like an investment every year, but only 5-7% of them are actually approved. Here you can read about how to create a winning pitch deck and send your pitch to us:
Prior to any investment decision, we make an initial assessment of whether your company could be of interest for an investment and whether it is in the right phase. When our investment managers find companies that are of particular interest they carry out a more detailed analysis regarding a number of aspects, including the company’s vision, value offering, problems, solutions, business model, team, customer need, growth strategy, financial plan, capital requirements and market potential, as well as exit opportunities. We often meet with the entrepreneurial team several times in this phase and we also put the startup team through a battery of tests. While many investment proposals are eliminated at this stage, the investment manager will take the most appropriate proposals and present them to an investment committee for decision.
Investment decisions are made in two steps. The investment manager presents the investment proposal to the team. If the team agrees with the investment proposal, the investment manager submits it to the investment committee. The investment committee then makes the final decision on whether or not to invest in the company. The investment committees meet about every six weeks. Once the investment decision is made, more in-depth due diligence may be carried out. The investment process can be terminated here if reasons to do so should arise.
Before the investment is made, an investment agreement and a shareholder agreement are signed. These contracts stipulate the terms and conditions as agreed by the investors and the other owners. In some cases, a Term Sheet (an agreement of intent) is also used to list the agreed main terms of an investment before conducting an analysis and due diligence.
Development of the company
Almi Invest goes in as an active owner, through representation on the board of directors or as an adjunct to the board, for the purpose of ensuring the best possible growth in value for your company. After an average of about five to seven years we exit from the company along with other owners in conjunction with a purchase or a public offering, or by selling our holdings to an investor that was approved by the company.
The goal of our investment is to eventually be able to sell our shares with a return. How we complete the journey to a successful exit is stipulated in the shareholder agreement and in a joint ownership agenda together with other owners. The exit strategy may involve a sale to a financial player, an industrial player, or through a public offering.
After executing an exit we reinvest the capital in new and existing companies.