WE HELP IN CREATING YOUR SUCCESS
The ultimate question we want you as founders to answer is: Does your start-up really have the prospects of becoming a home run?
Investment areas for the Stoaf III Scitech Fund:
Market potential, scalability & unique differentiators
The answer will depend on your start-up´s addressable market potential and scaleability and on how strong your current and future unique differentiators from competition is. Taken separately, these determinants are difficult enough for founders to analyse, communicate and put together in a business model framework. They are even harder to make understandable. But Stoaf III SciTech has an experienced team of General Partners (GPs) and business angels. They are skilled in analysing Investment Memoranda, Business Plans etc. for a variety of start-ups and, in many cases propose improvements to your start-up´s business strategy. A minimum requirement for us is that the information provided must be understandable and comprehensive. Note: we only invest in start-ups whose founders believe they will be able to deliver an exit in five to seven years at which point the value creation must be impressive and easily understood by less experienced investors.
We also invest knowledge and experience
We help you as founders to reach these high goals all the way from your start through the mid-stage of your business.
CATCH EARLY – RIDE LONGER
We have coined the slogan ”Catch Early, Ride Longer” to emphasize that we invest early in your venture and follow its development actively until it is a going business in mid-stage. At start-up most ventures have high risks, some also pure uncertainty.
Our analysis identifies both levels and types of risks as well as uncovering any remaining uncertainty. We accept high risks if the upside potential is promising enough.
You need to convince us that your addressable market is large enough to allow for building a medium-sized to large company in the long run. In many cases, Stoaf III SciTech offers to be a competent partner to founders from either a lead financing position or as a complementary investor. Our competence inputs are often needed because scaleability is not especially pronounced for ventures in our preferred investment areas. Our competence inputs are as a consequence often crucial for early value growth and for maintaining confidence in your venture even when it does not scale as quickly as you may have claimed.
There are no rules without exceptions. Pharma start-ups are particular exceptions to what has just been expressed. Their market entry tends to lie beyond Stoaf III SciTech´s usual exit horizon. However, most Swedish pharma start-ups become trade sells. Previously, trade sells opportunities came late in pharma developments, lately big pharma acquires earlier in the new drug developments. Hence, pharma start-ups lie well within the fund´s exit horizon.
We look for the unique technology properties
A low scaleability of our B2Bs in comparison with internet based B2Cs must be compensated by stronger, more durable and/or expandable uniqueness. Preferably, this should be possible to predict already at start-up. It may be due to heavy research, a developed advanced technology or a radical/disruptive discovery or invention. Such unique properties suggest a competitive lead after market entry. If durable, it will in addition have the scope to create a long and not only strong market lead. Essentially, we look for your start-up´s fundamental technology properties for the long run.
We look for technical uniqueness
WE ARE PROUD TO CHAMPION DIVERSITY
We believe that diverse teams make better decisions and improve performance. We welcome entrepreneurs irrespective of gender, ethnicity or religion.
SUSTAINABILITY IS A CORE VALUE
We invest in founders that make the world a better place to live. Sustainability is at the heart of our investment philosophy.