Looking for High-Potential Businesses
GTI Capital will invest in businesses selected according
to the following fundamental criteria:
Competent and committed management team
The building block of a successful company is certainly its
management. We are interested in working with companies where
we find highly motivated entrepreneurs, coupled with a multidisciplinary
management team. These people should demonstrate that they
have the skills to lead the company through its various stages
of development. Along with sound technological knowledge,
they must have an in-depth understanding of the competitive
environment in which they operate.
State-of-the-art technology
We are looking for companies with proprietary products or
which are already at an advanced R&D stage resulting in
a high barrier to entry for competitors. Ideally, the company
is amongst the first to enter a new sector or to market an
innovative technological solution.
Large and identifiable market
We focus on businesses operating in markets with high revenue
potential, where the demand for new technological solutions
could grow rapidly enough to generate significant sales opportunities
in the short term.
Profitability
Candidates should have developed a profitable recurring
revenue model that can be implemented in the near to mid-term.
Exit strategy
In order to achieve superior returns on investment within
a reasonable period of time, we invest in companies that have
the potential to be listed on a stock exchange or to be targeted
for an acquisition by already well-established corporations.
Investment size and structure
At first, GTI Capital together with its limited partners
and/or co-investors will generally invest up to $5-10 million
in exchange for a minority equity position in the company.
After the initial investment and according to the company
development plan, GTI Capital could increase its financial
contribution. Ultimately, the total investment in a given
company may exceed $25 million over the course of a few additional
follow-on rounds.
Follow-up
We also make sure that the selected companies will benefit
from the expertise and knowledge of GTI Capital’s partners
and investment professionals. According to our experience,
this is a key element for start-up companies where the management
team often needs more than venture capital to support the
development of their business. In providing the right assistance
at the right time, we can make the difference between a good
company and a great company.
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