«Entrepreneurial equity»
«Entrepreneurial equity» is an innovative approach to funding and corporate management in the world of SMEs. It distinguishes itself from classical private-equity models by being transparent and based on entrepreneurial principles, and above that its investors have a strong sense of values. «Entrepreneurial equity» makes sure that the interests of all participants – the SME with development potential, the investors and the entrepreneurial equity company – are working towards the same objectives.
Main characteristics of the entrepreneurial equity concept (click the statements)
Thorough due diligence
The extensive experience of the partners at EquityNova permits an efficient and innovative due diligence process to be undertaken that looks at a company from a range of perspectives. Alongside the classical finance-oriented perspective, EquityNova places particular emphasis on technologies, markets and human capital – the central factors in any company’s success. EquityNova always takes personal responsibility for the selection of a company, which is why it always invests in every company it selects.
Investment opportunities with a clear project focus
The investors only commit to concrete company projects – they do not invest in funds. They can therefore utilise their interests in designated sectors, markets and specific products in the company selection process, which promotes trust-based collaboration.
Supporting entrepreneurial activity in the long term
EquityNova is not interested in short-term corporate acquisitions and disposals, but instead in the long-term development and promotion of a company. EquityNova ensures that a company’s strategic governance will enable it to grow profitably and sustainably. The disposal of a company will only be considered in exceptional cases. If this does occur, then it will be based on the actual interest of the company itself.
Promotion of a healthy corporate culture
EquityNova has extensive experience of entrepreneurship and corporate management and also a broad network internationally. The promotion of a healthy corporate culture based on mutual respect and esteem between the owners, board, management and employees is a central governance tool for EquityNova. As EquityNova sees it, it is vital to have an interest in and understanding of a company’s history, culture and traditions.
High level of transparency and opportunities for participation
An efficient reporting tool and regular notification opportunities guarantee transparency for the investors. If required, and provided that the circumstances are right, investors may contribute to a company’s strategic development alongside EquityNova, for example by appointments to the respective board.
No conflicts of interests arise from the compensation models
The sustainable success of a company also depends on whether the interests of all participants can be aligned as far as possible – one-sided incentives should be avoided at all costs. That’s why EquityNova distances itself from short-term compensation models. EquityNova itself is predominantly compensated by way of dividends and thus pursues the same long-term entrepreneurial objectives as the investors.
Increased value
«Entrepreneurial equity» generates increased value for all participants by bringing together entrepreneurial investors with an interest in long-term, profitable growth and growth-orientated SME companies. EquityNova puts its experience in corporate management and corporate development at the service of these companies. What «entrepreneurial equity» does is to enable the participants to shape the best possible, sustainable future.