Our Investment Policy:
GreenAngel Energy’s investment policy includes identifying innovative angel-stage companies that have a valuation of approximately $2 to 3 million with an objective of acquiring a substantial position in the company from 5 to 15%. These early-stage valuations offer considerable opportunity for investment gains when companies reach fruition. Our portfolio approach helps spread the risk of early-stage investing across a number of companies. The objective is to aim for high-return opportunities that have the potential of providing a 10x investment return or better over a three- to five-year timeframe. To ensure the success of our investments, GreenAngel Energy will provide support to our investee companies through the provision of financial assistance as well as management services.
GreenAngel Energy’s investment policy sets forth a process to make prudent investment-related decisions by identifying specific goals and objectives outlined in the decision-making process for selecting investments. It also specifies the procedures and relevant measurement indexes to be used in assessing ongoing investment performance, in accordance with our stated investment objectives. GreenAngel reviews this policy on a regular basis, making amendments as it deems strategically necessary. Our policy is intended to allow for sufficient flexibility to capture the best investment opportunities, yet provide parameters that ensure prudence and care in the execution of our investment program.
Investment Scope
GreenAngel’s target deals will include most of the following characteristics:
· Product and services that have a global market potential
· Scalability
· High probability, as deemed by the experience of the Investment Committee, to achieve commercial success within a defined period
Investment Stage
GreenAngel focuses on early-stage investments. This is the stage where GreenAngel’s experienced team can add the most value beyond the investment component. This stage provides more attractive valuations and larger exit multiples. First round financing adds considerably more value to invested funds through risk management versus risk avoidance that is characteristic of later stage deals.
Deal Structure
Our investments will be made mostly in the form of common shares, but may include bridge loans, secured loans, unsecured loans, convertible debentures, warrants, options, net profit interests or other hybrid instruments. The company will provide management expertise and be represented on the Board of Directors through Board membership or observer status
Target Deals
Our desired target deals are ‘green’ products, technologies and services that offer a clear path to liquidity in three to five years. These liquidity events will most likely be through acquisition or in some instances an IPO. Our portfolio companies will be managed for cash flow to reduce financing risks associated with delayed liquidity events.
Return Expectations
GreenAngel expects target deals to offer a minimum of 10X return of investment on exit with liquidity events in three to five years. Returns are expected to materialize through capital gains based on the growth of both tangible and intangible asset values. Value creation will be achieved by leading investee companies through follow-on rounds of financing and realizing significant liquidity events.
Diversification
GreenAngel’s funds will be diversified through investing in companies at various stages and a variety of sectors. A maximum of 20% of the investment capital base may be invested in any one transaction.
Investment Committee
The GreenAngel Board of Directors forms the Investment Committee and reviews all investment related policy, performance, and management issues. The Committee also reviews and recommends investment structure, and monitors investment performance. Where necessary, the Committee consults outside investors on matters of industry and technology expertise.