Investment policy and restrictions
This page contains important information that anyone should know about an investment by INKEF Capital before submitting a proposal. We want to be honest and clear about what we can do, but also what should not be expected from us. If we invest in a company, we will always agree on transaction documentation that covers all the aspects of our investment.
However, without being exhaustive, the investment policies and restrictions on this page will give an insight in possible downsides and our general approach to an investment.
We feel that INKEF Capital can add a lot of value to a company, but naturally not everything can be achieved and there are limitations.
We can agree on a specific investment, but can never guarantee such things as:
- Financial success for a company or any of its stakeholders
- Continued investment by INKEF Capital in any subsequent investment round
- An endorsement expressed or implied by ABP
- Employment for the employees of a company
- Investment in entrepreneurial spirit or employment in a region or country
Possible down-side scenarios
If we invest, we see potential in a company, but we cannot predict the future. So although we have made an investment, business may not always prosper. Unfortunately, that can result in situations such as the following:
- After one or more investment rounds INKEF Capital can stop its funding
- Terminating employment within the company in which INKEF Capital is invested
- Bankruptcy of a company without INKEF Capital stepping in to cure any deficits
- Your company defaulting on its obligations to third parties without INKEF Capital stepping in to cure any deficits
Now we have gone through some of the down-sides, we have listed below what the key drivers are for us to make an investment and what are important aspects for us when considering a proposal.
- Promotion of technology entrepreneurship
- To generate a return for our founder and funder ABP
- To be compensated for the risk of investing in an inefficient market
- To build economic development through the expansion of the knowledge economy
- To build a new model for technology investment that provides economic value for all stakeholders
- Lifecycle - We prefer to invest in multiple rounds of finance, from seed through to expansion
- Long term – providing sufficient and durable finance to achieve success
- Directive - We only invest where we have the capacity to provide direction to the enterprise
- Constructive - We invest as active partners in a company where we build value together
- Success driven – We invest to maximize success
- We invest with trusted third parties, such as venture capitalists, informal investors, regional investment funds and incubators who share our values and approach
- We invest in entrepreneurs and technology experts who make long term commitments to success
- We invest in people with disruptive technologies and innovative products based on new technology, that address an existing problem or opportunity in the market
- A company looking for an investment by INKEF Capital should be based in the Netherlands
- We only invest if we can participate in value creation
- We can fund development as early as a proof-of-concept stage
We intend to invest in follow-on funding when key milestones in a business plan are met or exceeded.