SmartCap invests directly or through funds into Estonian innovative research and technology-intensive companies with strong international growth potential.
SmartCap makes investments either through an on-going selection and evaluation process over a longer period of time, or through a competitive selection process usually with a specific objective and a shorter fixed-term deadline.
In both cases, the investment process follows certain similar main phases:
We mainly source investments through our on-going mandates or through holding Calls for Expressions of Interest with a fixed deadline. Once our investment mandate is active, we review the inbound investment offers, as well as actively source potential targets ourselves. We identify the eligibility of the investment cases by screening the targets against our qualification criteria.
Thorough evaluation is carried out and each investment case is assessed. For each target we evaluate the substantial investment proposal, incl. team composition, business plan, track record etc. relevant for the particular investment. As a result of the analysis, an initial investment decision or shortlist of best investment cases is made. All positive cases go through due diligence process before the final decision.
Negotiation and execution
Regarding positive investment case(s), the legal documentation is reviewed and/or negotiation process initiated, during which the final terms and conditions of the investment are agreed. If the legal review and/or negotiations are successful, the documentation is signed, and the investment is carried out or the investment commitment is established.
Monitoring and review
We expect an active monitoring and evaluation of the investee, and regular reporting to investors during the life cycle of the investment.
In case of fund investments, we expect the fund to exit its investment positions within the fund term and to return the proceeds as agreed.
In case of direct investments, we act as a patient investor and look for exit opportunities once the strategic objective set for the investment is achieved.