The relationship between RSG Capital d.o.o. and VC fund Prvi sklad?

Prvi sklad is venture capital fund established under the Act on Venture capital companies (UL RS, 92/2007). It is a legal entity with its own management structure, comprising Investment Committee and Supervisory Board, which invests in companies as a minority shareholder.

As stipulated by law, Prvi sklad has its legal representative, which is RSG Capital, VC management company. As management company, RSG Capital is responsible for projects' evaluation and elaboration of investment proposal, while in case of equity financing funds are invested by Prvi sklad.

What is the investment focus?

Prvi sklad is interested to invest in business proposals that:

•       Have new products or services with unique characteristic and, as a consequence, high growth potential

•       Are scalable, with idea and business model allowing regional or global expansion

•       Are proposed by entrepreneurial team with highly committed individuals with complementary knowledge and skills, capable of implementation of their business strategy,

•       Have suitable business and managerial processes in place  or are in position to introduce them in a short term

•       Have clear and legally sound ownership structure with clear distinction between personal and company’s assets.

•       It is possible to come to an agreement on the exit strategy, which is normally within 3 to 5 years.

What is the target return on investment for Prvi sklad?

Expected return on investment, taking into account high risk related to the early stage investment, is at least 30% annually.

What is the share Prvi sklad seeks to acquire in the companies?

Prvi sklad always puts so called fresh money in a company, that is, invests by increase of capital and always as a minority shareholder, acquiring up to 45%. Founders or managers of the companies retain the majority shareholdings and therefore control over the company.

How can RSG Capital support projects in very early development stage, looking for other services and lower financing engagements?

RSG Capital has developed range of services to stimulate inflow of projects, interesting for VC investment. Therefore, RSG also supports further development of promising business ideas that are not yet interesting for VC, with the instruments like bridge financing and convertible loans for projects with expected high growth and further investments, or with services such as partner search, fundraising and project structuring. We can also support projects in need of smaller investments by introducing them to the business angels network.

How does RSG Capital provide confidentiality of business proposals and entrepreneurs?

RSG Capital is a member of EVCA (European Venture Capital Association) and all of its activities are carried out according to the best practice and rules of the organization. One of the most important issues is confidentiality of information. We treat all information received from entrepreneurs or teams as being confidential and do not allow access to information to any third parties. If requested by entrepreneur or team, we can also sign additional Non Disclosure Agreement (NDA).