Investment strategy for entrepreneurs
With the combination of capital and experience
eCAPITAL provides capital and know-how for entrepreneurs with promising innovations and business plans within our focus areas in order to turn their start-up into a profitable business.
We know from our own experience: On the way from start-up to a profitable company, not only capital is important. A source of success is also the support in important entrepreneurial and strategic decisions or in specific technical questions. The extensive know-how of the eCAPITAL team and our network guarantee an ideal counselling and support. This helps our portfolio companies to achieve ambitious goals.
For our portfolio companies it is as well an advantage that our investors mainly are themselves entrepreneurs and former entrepreneurs, in addition to institutional investors. Our portfolio companies not just benefit from their experience, but also in many cases from synergy potentials.
With this in mind, we support founders and entrepreneurs in mastering their entrepreneurial challenges at all stages of development:
Formation phase (seed)
Seed capital is used to finance the phase of the development of ideas, research and development of prototypes. The aim here is to push concepts until completing a “proof of concept”. Our team has its own founding experience and has already invested several times in seed phases.
Start-up and early stage
Start-up financing typically starts when a functioning prototype is available and the market launch needs to be financed. Start-up financing also refers to situations in which a company already has a product, but needs fresh capital for its production and marketing.
In general, the companies in which we invest during this growth phase are already generating sales in the range of €3 million to €10 million.
When investing in companies in the early stages of development we mostly acquire minority interests, majority interests are less frequent. The investment is always carried out by means of a capital increase or by a share purchase from existing shareholders. In the first step, financing volume ranges between €0.5 million and €2.5 million, or even more in case of a co-investment with our investors.
Growth phase (expansion)
Once a company has established itself on the market with its idea or product, the next goal is to expand its market position. At the same time, it is important to professionalize product development and to open up new markets and regions. eCAPITAL supports both growth strategy and required team development with sound know-how and sufficient capital.
Companies that we invest in during this growth phase usually generate a turnover ranging between €10m and €50m.
When investing in companies during the growth phase, we also mostly acquire minority interests - majority interests are less frequent.
An investment can be made in different ways.
- capital increase
- purchase of shares from existing shareholders
- succession solutions
- MBI / MBO
The financing volume in these cases can range between €0.5m and €5m. In particular cases however, it can be as high as €10m.
The key factors for selecting our portfolio companies are:
A high level of innovation: What makes the company unique and innovative? Is the company already innovation and market leader?
The business idea and its growth potential: How will the company become commercially successful?
The market: Does the company address a promising and strongly growing product or application sector?
Customer value: What is the clear value and benefit for the customers, what are the the USPs and how does the product stand out from already existing technologies?
Value increase: Does the business model facilitate an above-average increase in company value for founders and investors?
The team: We invest in teams with strong entrepreneurial personalities, extraordinary talents and high innovation potential.
Did we spark your interest? Please contact us for further information.