Details on our process can be found in this link:
High-level summary:
Through our extensive and growing network, Quantra pursues promising startups to invest in selective, high-demand investment rounds, often along top tier VCs. Our team of investment professionals reviews a wide range of startup companies every month, through a combination of inbound and outbound deal flow. We then conduct in-depth due diligence and negotiation using our proprietary assessment technology which thoroughly analyzes each startup, significantly reducing the chances of failure.
Once a deal is identified, we publish it to our network. If there is enough interest in the deal, we will host an investor call with the founders. This gives investors the opportunity to meet the team, ask questions and better formulate an investment decision. If the decision to invest is made, operating and subscription agreements are signed and funds are transferred. Expect closing to occur anywhere between 45-60 days from launch.
After the round is closed, we take care of any additional administrative matters. This includes side letters, pro-rata agreements, carry share amendments or carry splits. We additionally provide ongoing reporting on investment performance and investor relations services. Examples of this can be quarterly reports containing updates on company progress and estimated metrics. When relevant, investors also receive a monthly digest of news featuring their portfolio companies, as well as other timely updates relating to investments.
Exit strategies depend on the company, but generally happen in the form of IPO, M&A or secondary transaction, whereby a later stage investor offers to buy out early investors. There’s no such thing as a typical holding period, however a fast-growing company can reach $1 BN valuation in 5 years. It should be noted that any investment in startups is illiquid and there is no guarantee that an exit strategy will come to pass. You may not ever be able to sell or liquidate the investment or to receive a return of principal. Typical exit strategies are as follows:
• Short term. Exit in a future round in which a fund or powerful investor wants to inject significant capital into the company and additionally acquires shares from the initial or minority shareholders, i.e. they acquire your shares in order to obtain a relevant position within the shareholding.
• In the medium term. Acquisition by competitors or companies interested in expanding their business as well as by a fund interested in obtaining a relevant position within the shareholding.
• Long-term. Exit by initial listing on a regulated market, with a sale of the shares to new private investors.
• At any time. Sale of your shares if you have a buyer, initially among the other members, otherwise freely among non-members.
• Eventually. This is not the norm, but if the startup acquires a dominant position in the sector and consolidates its numbers, it may pay out dividends