At VAI, we believe that innovation and new technology will be a major driver of growth, and can deliver superior returns to investors. We look for established businesses with exciting technologies meeting our investment criteria, but above all we visit companies and meet the people behind them. We back management teams with both vision and the single-minded focus to deliver results.
Our strategy is to source opportunities offering superior long-term capital appreciation through investments in companies in the technology space.
This is a focus which we believe is underpinned by the global drivers of demand for new technology:
New age consumer products and brands
Retail and Consumer market technologies
Physical or cyber-security and terrorism threats drive demand for security technology
Forefront Financial Technologies
Squeezed corporate budgets have increased the focus on enhancing efficiency and reducing costs through the use of technology
We look for companies that meet our investment criteria: patentable, differentiated technology with strong IP; clearly identified addressable markets; scalable business models; attractive valuations; and above all strong management teams.
At WCEI, we look for established businesses with exciting technologies meeting these criteria, but above all we visit companies and meet the people behind them. We back management teams with both vision and the single-minded focus to deliver results.
We carry out a comprehensive due diligence process on each company for which we undertake to raise funding, including company visits and conference calls.
Each company is then required to provide a presentation as well as a detailed Information Memorandum for investors, and we generally also commission a short 6-8 minute video in which the senior management team can present the technology and the commercial opportunity directly to prospective investors.
Each individual investment will usually represent a significant minority equity position in the portfolio company, usually in the range of 5% to 25% of a portfolio company’s equity.
The terms of each fund-raising engagement are written into a subscription or investment agreement. Together with the company’s Articles of Association and sometimes an additional shareholders’ agreement, these together cover all rights and minority protections, corporate governance and shareholder consent provisions.
All investments will be made via VAI Fund Entity. VAI will be maintaining a clean share register and dealing with the Investee Companies on an ongoing basis.
VAI Fund issues Preference Shares in the Segregated Portfolio specific to the underlying technology company investment to investors, with the rights of investors, risk factors and VAI structure set out in detail in the Information Memorandum available here.
We monitor the progress of all our portfolio companies closely, and the agreements also include our rights to appoint a Non-Executive Director or Observer to the Board, depending on our interest in the company.
At VAI, regular communication with our investors lies at the heart of everything we do, and a communications strategy has been developed to ensure investors are kept fully updated on the performance of their investment.
We monitor the progress of all our portfolio companies closely, and distribute bi-annually updates to investors, incorporating information provided by each of the portfolio companies.
This will include a management commentary on the progress made with the business during the period, including the technology and commercial milestones achieved, together with key financial data.
Updates or press releases will also be circulated to investors from time to time when there has been a key milestone development in a portfolio company.