Investment opportunities must pass a rigorous analysis and structured appraisal process in order to become portfolio companies. Decision processes are rational and transparent following the generally defined investment principles.
We are highly experienced in generating an outstanding proprietary deal flow, efficiently screening and successfully selecting investment targets. In its current fund smac | partners screened around 4,000 business plans and companies, entered into a detailed evaluation process with 200 to 400 of them and made investments in 31 companies.
Lead Flow Generation | Lead to Deal - Investment Criteria | Portfolio Company Management | Exit Management
Lead flow generation
smac | partners has proven to be capable of building an exceptional deal flow. As a venture firm we have for many years been a member of the relevant global communities of start-ups, VCs, business angels, service providers, vendors, industry initiatives and associations. Other sources of deal flow are law firms, M&A boutiques, accountancy firms and investment banks. Furthermore, based on prior long-term operational management business experience in various industry sectors, we have built up a strong industry network.
In addition to leveraging its global network, smac | partners performs diverse public relations activities in an ongoing process.
Lead to deal - investment criteria
To a large extent deal flow is subject to in-house assessment. In addition to our own expertise, however, external industry experts are consulted to ensure that investment decisions are as fair as possible. Particularly the following companies are very closely linked to the management team: BT, Flextronics, IBM, Infineon, Nokia Siemens Networks, O2, SAP, Siemens AG and Vodafone. In addition it is worth mentioning that the founders and managers of portfolio companies of the previous fund form a strong network within the communications industry and can be called in for consulting purposes.
Financial and especially legal due diligence are outsourced to auditors or law firms.
Based on this experience, we have a structured screening process and operate according to clearly-defined selection criteria. Typically, we pursue investment opportunities in early-stage companies that possess the following characteristics:
- Start-up in the European/Israeli ICT and related convergence market
- Strong, experienced entrepreneurial management team
- Large, global market potential
- Sustainable technology or business advantage compared to the competition
- Reasonable pre-money valuation
- Attractive exit options
Portfolio company management
In order to actively address the business and management challenges faced by potential Portfolio Companies of the Fund, smac | partners makes extensive use of our operational experience and network of personal contacts into the ICT industry to combine the skills and resources of our team with those of the management at the individual Portfolio Companies. In the past, we successfully introduced numerous portfolio companies to large industry players like Vodafone, T-Mobile, Siemens, Cisco, Intel, etc and hereby facilitated sales and partnerships.
We are are typically be represented in the board of directors or advisory board of the target companies. Typical challenges early stage start-ups faces are the development of a market entry strategy and the definition of a viable business model. With our comprehensive operational as well as early stage investment experience we give strategic guidance, to identify problems early when originating and to redirect management attention.
Exit management
The identification and verification of exit potential within a period of five years forms an essential part of any investment appraisal. Main exit paths are trade sales and public market listings. Immediately after the investment of the fund, a measurable exit strategy is defined for each portfolio investment. The management of a portfolio company will make the implementation of this strategy its key priority. Exit plans are continuously monitored in order to ensure that the right exit timing is found and the window of opportunity is not missed.
Exit opportunities are performed all around the world and to the international 'who is who' in ICT such as Microsoft, Cisco, Disney, etc. smac partners are able to leverage their worldwide exit experience including a deep understanding of the worldwide M&A advisor community to the benefit of portfolio companies and investors.