Companies with strong growth potential have a great need for capital in many situations, such as expanding internationally, wide-scale product innovations or broadening fields of business, which generally cannot be covered, or at least not fully, by normal debt instruments. Given the strong parallel increase in working capital requirements, the lack of capital as well as insufficient cash flow mean that any further expansion of the company is massively restricted, or at least progresses much more slowly than it should.
With its investment strategy, PONTIS focuses on situations in which equity capital, sometimes combined with other financial instruments, can play a crucial role in facilitating the further expansion of the company and securing it in the long term.
In addition to the business being of a minimum size with annual sales revenue of more than EUR 2 million, the core criteria for such an investment include significant growth potential in a market enabling the company to expand by at least 20-30% p.a. In this respect PONTIS not only focuses on companies with proprietary technologies; in many cases, innovative business models without proprietary technologies can be successfully implemented by experienced managers, and therefore seem suitable for growth capital financing through the fund managed by PONTIS.