WE BELIEVE IN FACT-BASED DECISION MAKING AND STRONG METHODOLOGY

Investing in a start-up with attractive upside potentials means that an investor must rely on a rare combination of few facts about its current and near horizon expected developments complemented with a more visionary future. As an angel powered fund, we like to make rational decisions based on facts. In the near horizon the focus is on avoiding downside value inflection points, while in the longer horizon the conquering of the upsides take over.

The final assessment of facts and visions rests on multiple perspectives of our experienced angels and general partners. We pride ourselves in employing methodologies based on solid research on Best Market Practices of high-yielding Silicon Valley venture funds as well as on experience based analytical methods tested in previous Stoaf funds. Our core team of General Partners and Certified Business Angels help us identify upsides and downsides of a variety of start-ups within SciTech´s four selected investment. And it supports our competence inputs in the start-ups we select.

Selecting start-ups for financing

From a huge deal flow, SciTech selects step-by-step a handful of start-ups annually for first round financing. We use a research-based and well tested, step-wise selection process to get to a limited no. of start-ups that look attractive enough in their business case strengths. After a thorough due diligence, an investment case analysis follows to form a basis for our view of likely home run potentials. Our negotiations aim at striking a fair deal between the founders and the SciTech fund. Our methodology is published (cf. below) and has reached a high selection accuracy in Stoaf II.

Venture Management

Our competence inputs in selected ventures is experience-based. An ongoing, interactive VM-seminar in venture management and exit optimization has led to a systematic approach applied at different stages of venture development. We like to have board representation so that our board member can alert other Stoaf specialists when certain competence inputs are needed “on-demand”. Together with founders and other investors we focus the attention on reaching upside value inflection points in time and steering clear of downside inflection points. Now that SciTech will keep investing in successfull start-ups beyond their market entry phase, we have recruited more specialists in mid-stage developments. Our new VM-seminar, running through the fund period will seek to identify more know-how for this purpose.

Exit optimization

During their mid-stage, ventures tend to reach their fund exits via IPOs, trade sells or mergers & acquisitions as a buyer of other young companies. Previous Stoaf funds have experienced ventures pursuing IPOs and trade sells, but not really M&As initiated by our ventures. However we now have specialists among our angels and GPs and with a better capitalised fund, SciTech is well equipped to help founders analyse and chose whichever exit way that may optimize their and SciTech´s returns.

SELECTION & INVESTMENT

  • High Deal Flow (~500 ventures/year)

  • High Accuracy Four-step Selection Process

  • Thourough Due Diligence

  • Optimized Investment Design

  • Fair Deal Design

VENTURE MANAGEMENT

  • Seniority and Experience

  • Active Board Participation

  • Reaching Upside Value Inflection Points

  • Steer Clear of Downside Inflection Points

  • Specialist also in Mid-stage Development

EXIT OPTIMIZATION

  • Optimizing Successful Exits

  • IPO, Trade Sell and M&A

EDUCATION AND CERTIFICATION

Angels investing in SciTech come with a variety of educational, professional and personality backgrounds. And they have different languages and communication skills. For this reason, Stoaf provides a 3-step education and case training to make them better adapted to a variety of tasks they chose to do.

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THE CASE: BIO-WORKS

Bio-Works carries out R&D, manufacturing and supply of agarose-based resins used to separate proteins and other biomolecules. In this large and well-established area, their products stand out as innovative and cutting edge with exceptional performance.

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THE CASE: ADDBIO

AddBio is revolutionizing the implant industry by solving a worldwide health problem – inadequate bone holding power.Zolidd® strengthens the bone, and significantly improved implant performance has been proven in a clinical study.

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THE CASE: ISAB

Inhalation Sciences’ primary product PreciseInhale is an advanced laboratory system that lets scientists measure how inhaled particles act in our lungs and affect our health.

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