Company-specific criteria
 
The key factors for PONTIS Capital when dealing with young, technology-based companies are having a scalable business model that can be applied internationally as well as an experienced management team. Such firms must have achieved a "proof of market" and have already attained market success with their products/solutions. There must be a realistic chance of becoming one of the international market leaders in the given sector or market niche within 4-5 years.

In terms of innovative medium-sized companies the focal point is more on established firms which have stable business models, yet intend to implement product and/or process innovations for example, or penetrate new markets (sectors or regions), and would like to finance this growth with equity capital. Potentially becoming market leader should also be an additional goal.

Such companies must generate annual sales revenue of about EUR 2 million, with the upper limit being drawn at roughly EUR 40 million.

The following qualitative investment criteria are also important for PONTIS Capital:

• Highly-qualified management team focused on success
• Positioning in international growth markets
• Innovative and/or state-of-the-art products or services
• Plausible and significant exit potential by means of added value

Sector focus

PONTIS Capital concentrates on technology investments, especially in the following three areas:

• ICT (Information & Communication Technologies)
  
  • Application & Infrastructure Software
  • Internet Technologies
    
  • IT Operations & Services
  • Electronics & Media
    

• Cleantech (Environmental Technologies)
  
  • Energy Efficiency & Smart Grids
    
  • Recycling
    
  • eMobility
  • Water & Waste Water Management
    

• MedTech / New Materials
• Medical Devices
• Diagnostics
• Industrial Biotech
• New Materials & Chemistry
  

With innovative medium-sized companies, investments are also welcomed in other growth sectors.

Size and structure of investment

PONTIS generally prefers to have minority investments, but in exceptional cases, majority investments are also an option. However, there is never any intention of taking on an operational role within a given company.

PONTIS invests EUR 1-5 million per company, which is mostly spread over the period of the investment. If necessary, much higher amounts can be invested in collaboration with co-investors.

Equity capital is generally injected into the firm in return for shares after an increase in capital. If circumstances permit then some existing shares may also be purchased. With follow-up financing, other types of finance can also be made available that are similar to equity capital, such as shareholder loans, convertible loans or mezzanine loans.

Third-party financing, such as from other financial investors, mezzanine funds, banks, business angels, etc. as well as public institutions like Austria Wirtschaftsservice, Austrian Research Promotion Agency, NÖBEG, etc. can be involved as is required, independently of the given financing structure.

PONTIS generally invests in a given company for 3 to 7 years before paving the way, generally with the other shareholders, for the planned exit (selling of shares).