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    Investment Process


    Investment Criteria

    Wellington House
    31-34 Waterloo Street
    Birmingham B2 5TJ

    Tel: 0121 236 8855
    Fax: 0121 233 3942
    Email: mail@merciafund.co.uk

     
    Investment Criteria


    In common with other venture capital and private equity providers, the MTSF makes equity investments on the basis of anticipated strong capital growth and high levels of return. Typically, the MTSF would expect to receive a 5 to 10 fold increase on its overall investment at exit. In most instances, the MTSF will secure its returns through a strategic trade sale of the investee to a larger industrial concern, although an exit via flotation of the business on a recognised stock exchange such as the Alternative Investment Market (AIM) is not ruled out.

    Prospective investees will have a strong focus on sector-specific, proprietary technology and innovation and must be based within the West Midlands region. In addition, prospective investees must fulfil a majority of the following criteria:

    (i) The company's growth and success will be dependent on the development of one or more proprietary technologies;

    (ii) There will be clear evidence of significant technological innovation with respect to the company's commercial product(s);

    (iii) The company will operate within one of the following technology sectors:

    • Medical & Healthcare
    • Advanced Materials
    • Environmental
    • Information & Communication Technologies
    • Transport;

    (iv) The company will have secured protection for their proprietary technology through ownership of granted patents, pending patent applications, design rights, and other recognised forms of intellectual property rights (IPR);

    (v) The company will have an experienced management team in place and/or internationally acclaimed technology founder(s); and

    (vi) The company will have a business plan that demonstrates a well-defined strategy capable of achieving strong capital growth and a highly profitable exit for investors within 6 years of the initial injection of venture capital