Investing policy
The Group's Investing Policy is as follows:
Braveheart invests primarily in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP. Through close relationships with a number of leading universities and innovation centres, we have access to a wide variety of emerging commercial opportunities at early stages. The Group's business is based on the following principles:
Growth: providing equity capital to enable companies to achieve their ambitions
Support: offering experienced business people to assist with corporate development
Service: building diversified portfolios for investors and showing market leading returns
Partnership: working with the academic and business communities to deliver economic benefit
At its present level of capitalisation, the Group is unlikely to commit in excess of £500,000 to any single portfolio company. For early stage opportunities, initial commitments may be less than £100,000. These numbers relate only to investment from the Group and do not include sums from clients or co-investors. Braveheart itself has no material borrowings and no gearing policy, however portfolio companies may themselves have borrowings with either Braveheart or banks and these borrowings may be secured against assets.
Braveheart, through its FSA-regulated investment management subsidiary Braveheart Ventures Ltd which acts on behalf of Braveheart and Braveheart Ventures' other clients, is an active investor. Through the appointment of board directors and observers, Braveheart Ventures monitors portfolio companies, and provides guidance and support on matters relating to company development and exit strategies.
The Group will not invest in film production or hotels.
While the holding period for investments will vary depending on the type of investment, the particular circumstances of the portfolio company and the intended exit route generally, other than seed investments where exit timing can be indeterminate, no investment is made where the expected term is of more than five years.