Entrepreneurs needing Capital and Expertise
We are seeking young ventures in the starting or market entry phases that have a considerable growth potential on the market, business scaleability, and sustainable or repeatable uniqueness. Our multi-step process of due diligence with associated investment assessment also help to weigh what input the founder applied for and the needs that we along with the founder decide upon during the assessment and negotiations. The precise nature of these steps helps save resources until a later stage in order to increase the potential return for the founder and financiers.
What kind of Ventures are we interested in?
Alongside investing capital to help with growth and business strategy, we can also invest expertise. This can include the venture’s business sector, as marketing or sales specialists, a temporary position as part-time CEO, or as a financial consultant. Our partners are used to working in these positions, although larger contributions are done for compensation in different forms.
What value add STOAF give back to Entrepreneurs ?
Our experience is that young ventures need markedly different contributions of expertise and capital, not just to complete the founders’ knowledge. We can bring perspective and can quickly adapt our contributions to their venture, phase, and founder characteristics. For example, a large contribution of expertise can sometimes be done together with a minor investment of capital and sometimes the opposite combination is necessary. Our multi-step process of due diligence with associated investment assessment also help to weigh what input the founder applied for and the needs that we along with the founder decide upon during the assessment and negotiations. The precise nature of these steps helps save resources until a later stage in order to increase the potential return for the founder and financiers.
STOAF syndicates and complements with other Investors
We apply an open syndication with other financiers that also want a high return that balances high risk with early ventures, preferably with active input of expertise.
However Our experience is that the Entrepreneurs both under and over estimates early Capital need and Venture valuation. STOAF has experience in these contradictions and can modify and manoeuvre so both the founders and investors can agree on fair deal.
Before you apply for capital
Our geographic area has been limited to Stockholm, specifically to the surrounding area that can be reached within two hours by car. We want to work with ventures that have low search and transaction costs for when our partners start actively providing experience to ventures. Normally, we like to see ventures that can be analysed by one or more of our Competence Partners and that the competence needs of any venture we’ve invested in also allows for our financial competence.
It is not uncommon that when we first invest we do so with a limited input of capital, this is because the information about a start-up is often qualitative and the possibilities for judging the quality of the entrepreneurial team often only arise after having worked with them developing the start-up. While our entry is careful, it can easily be combined by our partners investing alongside STOAF. At other time, this partner syndication occurs in the second or third financing round.
When using this financing model STOAF can reject young ventures solely on the fact that they will be too capital intensive in their first year after STOAF’s entry. Our experience, however, isn’t uncommon for entrepreneurs to exaggerate both their early needs for capital and the worth of their venture. To settle these opposing views, STOAF uses its experience to modify needs so both the founder and the financiers can form a mutually beneficial contract.
Good to know
We have a mammoth influx of young ventures that are seeking capital. This has caused us to build our objective review in multiple steps, where the first step is built on short and precise information from the founders. We therefore ask that you send in two or three pages of text for a first assessment. This text will help us decide on which ventures we think have a considerable potential. It is this reduced number of ventures we then more thoroughly review and it is then we require both revisions and additions to the informational material.
We are looking for young ventures in the start or market entry phase that have a considerable potential for growth on the market, scaleability in their business, and sustainable or repeatable entities. Our ventures often have a unique technical advantage or a unique business model that can be scaled up to give the market’s customers completely new possibilities.
To be able to make an initial assessment of your project, we need a short description of your business idea. Fill out the text fields below so we have the information we need for an initial matching with our Competence Partners. If we, after having read your short description, assess your project as an interesting possibility, we will get in touch with you for a more complete business plan. We meet twice a month and will try to get back to you as quickly as possible.