Venture capital management


Venture capital management

Core activity of RSG Capital is venture capital management. Via venture capital fund Prvi sklad, managed by RSG Capital, the company invests in early stage companies with high growth potential, credible and dedicated team and breakthrough technologies.

  

Investment period for Prvi sklad is typically 3 to 5 years. The fund invests as a minority shareholder through increase of capital. It acts as an active investor, contributing to the investee company's success within the framework of agreed upon rights.

 

 

Complementary services:

 

In addition, RSG Capital provides some services, which are tailored to the needs of start-ups and early stage companies before they are ready for VC investments. These include: 

 

Partners' network and partner search

Our key advantage is a wide network of partner institutions, including universities, institutes, technology parks, incubators, renowned companies, investors and financial institutions. Overview of their activities enables us to initiate co-operation among interested parties in order to increase the chances of success in the market and thus provide high returns.

 

RSG Capital also co-operates with a business angels' club organized within association Young Executives Society, expanding our services to the companies not yet interesting for institutional investors such as Prvi sklad. 

 

Convertible loan

Convertible loans are available for projects where RSG Capital is willing to share the risk, but investment in equity is not possible for different reasons. Therefore, a company can obtain a loan which can be converted into equity if agreed upon milestones are achieved. Milestones and shareholding offered for the amount being converted are agreed in advance. In case milestones are not achieved, the loan is repaid.

 

Bridge financing and payment of specific costs of a project

Fast growing companies in early stage often face liquidity problems. When a company has difficulties in financing materials, semi-products, development costs and similar, RSG Capital is able to provide bridge financing. This particular service is available when there are relatively reliable future cash flows, but at the same time, a company is not eligible for traditional debt financing.

 

Similar to bridge financing, RSG Capital can finance parts of the project which are essential for successful launch, such as IPR registration, different permissions and other costs slowing down project development and successful market entry. After agreed upon activities within the project are carried out successfully, the costs temporarily covered by RSG Capital are repaid, along with previously defined fee.

 

Fundraising

Optimal structure of internal and external sources of financing is often a dilemma of an entrepreneur, since it actually represents trade-off between control over the company and its accelerated growth supported by external financing sources. Based on its experience in financial markets, RSG Capital can offer expert advice in finding the appropriate structure of financial sources and introduce entrepreneurs to providers of funds.

 

RSG Capital works closely with business angels, venture capital funds and debt financing providers and is thus well positioned to assist in finding optimal funding structure for a particular project. Furthermore, RSG Capital assists in preparation of projects attempting to raise finance from EU or other international funds.

 

Advisory in project structuring and project management

Entrepreneurs with lack of experience in certain business areas are offered expert advice in the areas of financing, marketing and organization. RSG Capital co-operates with a number of renowned external experts in these areas, enhancing the quality of its services.



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