KLINT VENTURES PROVIDES SELECTED PRIVATE INVESTORS AS WELL AS INSTITUTIONAL INVESTORS AND FAMILY OFFICES ACCESS TO PROFESSIONALLY ANALYZED HIGH POTENTIAL COMPANIES WITH CONTROLLED RISK. KLINT VENTURES IS AN EFFECTIVE WAY TO DIVERSIFY MOST INVESTMENT PORTFOLIOS
COMPANY PROFILE
Klint Ventures is an innovative investment company* that is passionate about making venture capital accessible, intriguing, and enticing by bringing primarily Swedish and Nordic tech enabled companies to international investors. As Klint Ventures is not an investment fund, it has a more dynamic and flexible mandate with no fix end date and no lock-in period. This is a good structure for the long-term relationship with the portfolio companies we prefer. Klint Ventures is committed to taking an active ownership role to our portfolio companies.
TECH ENABLED
Investments will primarily be focusing on technology based companies with highly scalable business models. Our geographical focus is the Nordic countries where entrepreneurial activities show one of the highest success rates globally.
CLEAR CRITERIA
All portfolio companies are carefully selected based on a number of criteria, such as growth track. All investments are approved by the Klint team, consisting of successful and experienced entrepreneurs, investors and analysts.
GROWTH INVESTMENTS
Target companies should have a minimum value growth potential of 8 times investment within 5 years. Most companies will be post revenue with a product received well by customers. They need a strong business plan and be about to scale.
SIGNIFICANT VALUE GROWTH
Targeted value growth is 25% p.a. This would result in a compounded value development of 4.8x in 7 years and 9.3x in 10 years.
REINVESTMENT
Given its regulatory status as a holding company, Klint Ventures profits will primarily be reinvested, creating an opportunity of ongoing value creation.
CONTROLLED RISK
The Klint team has worked with many of the portfolio companies for years, assuring proven business models and products - which significantly reduces the risk normally associated with early growth investments. Bundled investments also further control the risk.
STOCK MARKET LISTING
When the time is right, Klint Ventures will proceed with a stock market listing. The route to an IPO has been explored with SIX and BX Swiss, the two regulated stock markets in Switzerland, but a listing is not expected to occur in a number of years.
REGULATORY
Klint Ventures AG is registered in Liechtenstein and is not an investment company or an investment fund in the sense of Liechtenstein financial markets regulation. Consequently, it is not regulated nor supervised by the Financial Market Authority of Liechtenstein (“FMA”) and/or the Swiss Financial Market Supervisory Authority (“FINMA”). GSB Capital Ltd, a firm regulated by the DFSA, has reviewed and approved this brochure issued by Klint Ventures Ltd as compliant with applicable DFSA rules and regulations regarding marketing materials, as per DFSA GEN 3.4.1.
BACKGROUND TO
KLINT VENTURES
Klint Ventures is formed by Corallium Investments AB (“CI”) and will benefit from the network and skills of the CI organization. Klint Ventures has its own team managing the company and its investments. Klint Ventures works closely with the management teams of the portfolio companies, assuring strategic direction and implementation. Some of the companies Klint Ventures invests into, have already been funded and managed by CI.
CI is the main owner of Klint Group and through that controls the majority of the voting shares in Klint Ventures. As Klint Ventures has and will acquire shares in companies from CI, there is a potential conflict of interest for Klint Ventures between investors and CI. The key risk can be that CI charges a too high price for shares sold to Klint Ventures.
OUR MISSION IS TO BE AN INNOVATIVE INVESTMENT COMPANY, SUPPORTING EARLY GROWTH-PHASE COMPANIES IN ORDER TO PROVIDE EXCELLENT VALUE GROWTH
Klint Ventures follows the International Private Equity and Venture Capital valuation guidelines (IPEV guidelines) to value its assets. For the transactions between Klint Ventures and CI, an independent firm specialized in tax and transaction services, Svalner, has valued all companies Klint Ventures has acquired from CI. All transactions between CI and Klint Ventures will be made on market terms, or at a price more beneficial to Klint Ventures.
CI still owns a substantial part of some of the companies Klint Ventures has invested in and thus has a strong interest in the continued success of the companies. Furthermore, most of the shares transferred from CI to Klint Ventures have been contributions in kind, paid for by shares in Klint Ventures. CI only received cash payments for a minority of the shares. As of August 2021, over 75% of the value of the shares of Klint Ventures has been contributed by CI without cash payment from Klint Ventures, further underlining the long-term interest of CI in Klint Ventures.
OUr team of experts
Our professional approach to business is mandatory. Professional means we are serious about what we do and ensure that - while considering the interests of our investors - our portfolio companies come first, each and every time. As long-term, active owners, we are team players that mentor and support the management teams of our portfolio companies. Complacency is not an option – we want to relentlessly develop and perfect our performance. We put our heart and soul into what we do. We are tenacious and persistent at all times. We love to build businesses!
ROI
7
CI OWNERSHIP
3 YEARS
TRANSACTION VALUE
€125m
ROI
11
CI OWNERSHIP
4 YEARS
TRANSACTION VALUE
€24.8m
ROI
2
CI OWNERSHIP
2 YEARS
TRANSACTION VALUE
€66m
* Past performance is not necessarily a reliable indicator of future results.
we know who we are
GROUNDED
Founders for founders - we understand the challenges faced by management teams of early-stage companies and are therefore actively involved in building the businesses of our portfolio companies by providing specific support where needed, which in some cases can go far beyond the duties of a regular board member. We believe in straight talk and open communication. We recognise that building a company involves solving constant challenges. Issues at hand should be quickly recognised, discussed and managed.
TRUSTWORTHY
Actions speak louder than words. All our stakeholders can rely on us doing what we say we are going to do. Our commitment goes beyond making an investment. We remember that trust is built over time. Consistent quality in everything we do is needed to maintain it.
PASSIONATE
We put our heart and soul into what we do, promoting a positive, energising and optimistic environment for our own employees but in particular for the management teams of our portfolio companies and their employees. Complacency is not an option – we want to relentlessly develop and perfect our performance. We are tenacious and persistent at all times. We love to build businesses!
PROFESSIONAL
Our professional approach to business is mandatory. Professional means we are serious about what we do and ensure that - while considering the interests of our investors - our portfolio companies come first, each and every time. As long-term, active owners, we are team players that mentor and support the management teams of our portfolio companies.
INNOVATIVE
We constantly seek new angles and opportunities for investments as well as for the further development of our portfolio companies. We work as a team to test and challenge ideas, and are not sentimental to move to a better solution when found. By questioning consensus, we add value, tapping into our network of skilled people and combining approaches from different areas.
Growth of Klint Ventures
The team behind Klint Ventures has invested over EUR 5 million into the company themselves. To strengthen its capital base, Klint Ventures issues participation shares to selected investors.
The participation shares have equal rights to the assets and potential dividends of Klint Ventures as ordinary shares but have no voting rights. In general, Klint Ventures intends to issue such shares on a quarterly basis. The voting shares are indirectly held by Klint Group, the company who established Klint Ventures. The capital of the ordinary and participation shares will be used to build a diversified high-potential portfolio. New companies will be added, the current holdings will be funded, and Klint Ventures may acquire more shares in these companies. As a first step, we target to raise EUR 50 million and to hold 10-12 companies. Over time this number will grow and investments into new companies in line with our focus will be made.
When the time is right, and at this point we expect the assets to be EUR 150-250 million, Klint Ventures will go public by listing the company, most likely in Switzerland. Klint Ventures has thoroughly analyzed the route to an IPO in cooperation with legal and financial advisors in Liechtenstein and Switzerland, as well as in dialogue with the two exchanges in Switzerland, both SIX and BX Swiss. There are no roadblocks to list Klint Ventures in Switzerland. Until the company is listed there will be no trading in the Klint Ventures´ shares. The listing will provide investors with liquidity in the Klint Venture shares, and thereby indirectly create liquidity in unlisted company investments. The liquidity post listing will be subject to the supply and demand dynamics of a stock exchange.
OUR METHODOLOGYMore on our setup
Klint Ventures will be audited by Grant Thornton, guaranteeing full transparency, compliance and fiducial responsibility. We follow the International Private Equity and Venture Capital (IPEV) Valuation Guidelines. In short, when a market price is set through a capital round with a number of external investors, that value will be used. In the absence of a market value, the most appropriate valuation method will be used. For transactions with related parties, e.g., Corallium Investments, and where there is no market price available, the valuation will be done by an external valuator. Investors do not risk double taxation on value generated from Klint Ventures. Capital gains are not taxed in Liechtenstein and dividends will in our setup not be subject to withholding tax.
CONTACTsome of our partners
