Entrepreneurs Information for entrepreneurs seeking finance
Why should I partner with Quantum Capital Fund (QCF)?
At QCF we offer an individual and personal approach to every partnership we form and provide a wealth of sector experience and knowledge from across the Information Technology sector, Online Media and other internet markets enabling us to contribute to the development of strategic business plans and the relative strategic decisions that may need to be taken. Because we invest in companies at different stages of growth, we understand emerging trends as well as mature markets. When you understand where a market is heading, you know where to invest and what makes a great product.
Will you sign or supply a Non-Disclosure Agreement (NDA) or any other confidentiality agreement?
Due to the large number of proposals and other requests that we receive we are unable to sign or supply non-disclosure or confidentiality agreements and cannot accept responsibility for protecting against misuse or disclosure of any confidentiality or proprietary information. However we do work on a basis of implied trust and will always respect the confidentiality of any material you submit and our discussions with you.
In addition Quantum Capital Fund and our associates (collectively known as QCF) does not provide financial advice and we disclaim responsibility and legal liability for any loss, harm, or damage, however caused, resulting from acting on any opinions expressed. QCF makes every effort to avoid making incorrect misrepresentations or misleading statements, and in no way encourages unconscionable or deceptive conduct in the providing of its services. By agreeing to submit a proposal you expressly accept that QCF will not and cannot be held liable (in all forms of legal liability) for any liabilities, costs incurred or financial losses of any kind.
In what countries do you invest?
We are an international company and will consider applications from around the world.
What are your Investment Criteria?
Intellectual Property (IP) must be owned by the company that we invest in
Development of IP must be done in-house,
We will consider situations where IP has been acquired and then further developed in-house.
IP should preferably be patentable,
If not patentable, should provide some form of sustainable competitive advantage
Management teams must include people with all the required key competencies.
If all competencies are not on board then clear plans need to be in place to bring them on board at the appropriate time
Key founding shareholders should be involved in the business on a full-time basis.
Business should display good prospects of being economically viable
What is your Investment Process?
When an Executive Summary is received it is logged and initially reviewed by our investment team. The plan is initially assessed to determine its compatibility with our investment criteria, industry focus, and overall portfolio configuration. The team then assesses the business concept and viability from a market risk perspective.
Qualifying business plans undergo a higher level of scrutiny as the investment staff analyses the company, industry and market related risks. At this stage the company's management will be invited to present their plan to members of our investment team. Preliminary meetings assist us assess the company's level of human, organizational, technical, financial, and marketing resources. After the initial review and presentation, we may then present a broad outline of the type of investment we would consider making.
Provided mutual agreement is reached by both the parties, we will begin an in-depth operational and financial due diligence of the company. After concluding our analysis, we will then be in a position to present and negotiate a term sheet specifically addressing issues such as the size of our investment, the investment instrument, the ownership percentage of the company it would represent, voting and control provisions and board representation. Our investment would be conditioned upon satisfactory conclusion of due diligence and final approval by QCF’s partners. After approval by QCF’s partners, legal documentation commences, due diligence concludes, and, presuming everything is in order, funding occurs.
Do you have to lead an investment?
We prefer to be the first investor and business partner and have led or co-led all our current investments. We will assist a company form a syndicate of quality investors if there is a requirement for a syndicated investment.
Do you require a board seat in order to invest?
Yes, normally we join the Board of our portfolio companies. Typically, one person from Quantum Capital Fund sits on a board as a non-executive or executive member specific to the investment; although the entire QCF team is available to assist the management team maximize market and growth opportunities.
How does Quantum Capital Fund work with its portfolio companies?
Quantum Capital Fund focuses on building industry-leading companies. We look for ways to assist companies accelerate growth so that they can become market leaders. We add value by building management teams through our networks, identifying optimal markets or business models and assisting with manufacturing, sales and distribution. In short, we not only provide companies with capital for growth and expansion, we also assist chart and navigate the path to success.
Where does Quantum Capital Fund find the companies in which it invests?
We are seasoned investors who have remained active in the industries where we have earned our operational expertise. Often, our best investments are companies we proactively contacted as part of our market activity. The entire QCF team is constantly in the market learning about and evaluating new technologies and meeting with the people who are working towards taking these technologies to the next generation. We attend trade shows, speak at conferences, and host events for our portfolio companies; all of which gives us insight into today's evolving markets and many opportunities to meet new entrepreneurs. Whether we are researching a new investment opportunity or increasing our market intelligence on behalf of a portfolio company, we are staying connected to the industries we know and love.
How do you set valuation?
The valuation process is a bottom-up modelling process that varies by company, stage and market conditions. Among our criteria in determining valuations, is the potential for an appropriate return relative to the stage and risk of the investment.
What is the process of setting up a meeting with the Quantum Capital Fund?
We are approachable people who strive to be responsive, even while we are active with our existing entrepreneurs. We prefer email and in the first instance will want to review an Executive Summary to decide how to proceed. We advise that you ensure that your project fits our investment focus.
How do I submit my Executive Summary?
Please email a 2-3 pages summary to email@example.com. Please do not submit plans by postal mail.