We invest in early and growth‐stage companies who may scale effectively in rapidly growing markets, are apt to dominate a given market, and display an exit potential.
Invest – Verte Opportunity Fund provides financing to chosen companies in exchange for an equity share or convertible notes in the company.
Early-Stage – There are many different stages of a business, making up its entire life cycle. The definitions of these different stages can be rather broad and may vary widely, depending on who you ask. Early-Stage, to our Fund, means the company has a fully-developed prototype of its product or service. A company at this stage is beyond startup stage and has begun operations, but may not yet be at the point of commercial manufacturing or sales. Their products or services may or may not be commercially available, or the business may have a few initial customers.
Growth-Stage – At this stage, companies have had their first initial orders, or perhaps a few customers. These companies are showing the ability to grow, but may not be able to fulfill or support large orders and need financing to effectively scale. As they reach scale, these companies may become public or be acquired by larger companies.
Companies – These are business enterprises, or firms, set up to conduct commercial business that maintains both the goal of longevity and the objective of future growth.
Company Attributes – No one wants to wait around on a team that accomplishes nothing, wastes time, or spins its wheels. In order to gain investment from one of our funds, a company needs to demonstrate the ability to innovate grow quickly in its early stage and scale effectively in its growth stage. The fund evaluates its potential investments across the company’s life cycles
Apt to Dominate – Market dominance is typically defined as the strength of a given product, service, or brand, relative to competitive offerings. Businesses in line to receive an investment from Verte Opportunity Fund must be able to clearly demonstrate these strengths. Businesses who are poised to dominate their given market usually can fall into three categories:
The business may be a Market Leader, with a brand new product in a new market. They also could be a Market Challenger, which may produce a better product or an improved service, that may capture market share. Firms may even dominate by being a Market Specialist, where they completely fill a niche market.
Given Market – Companies seeking investment should clearly understand their customers, and the competitive landscape.
Display an Exit Potential – As with any investment, the potential to make a return on that investment is the key determining factor. The Fund does not invest in what are known as lifestyle businesses, where the aim of the business is to sustain a particular income level for the founder. A return on investment for our Fund is typically produced by having a liquidity event. The two most common types of liquidity events are direct acquisitions by other corporations or private equity firms or an initial public offering (IPOs). The company may also merge with another to have a liquidity event. A company must be able to demonstrate the capacity to have a liquidity event in order for it to receive an investment from Verte Opportunity Fund.
The Verte Opportunity Fund – uses this Investment Thesis because it helps remove some of the emotion from our investing. We highly believe that a disciplined Investment Thesis can be the foundation for a profitable portfolio.