Investments
INVESTMENTS
Avigo makes investments in the geographic markets in which it has historical knowledge; namely, Brazil and the United States. Its investments make up the core services of the company and are exclusively intended for early-stage companies with significant growth potential in their respective markets, or high potential early stage companies in search of expansion opportunities or business restructuring. Avigo provides 2 different forms of investment capital: financial and non-financial:
Financial
Financial investments can be made through capital contributions for the purchase of company stock (immediate investment) or through convertible loans into shares of the company (future investment). In the latter case, Avigo sets business goals so that conversion of the notes occurs at pre-determined valuations and at agreed upon timeframes.
Non-financial
Non-financial investments can be made through participation in membership to the Board of Directors or Advisory Committees. Avigo provides its management expertise and business network in exchange for equity compensation.
Qualification
Avigo considers various aspects of the business to evaluate the possibility of investment, regardless of the stage in which the company is. Among the aspects mentioned are:
- The company must have an attractive idea, product, or service (IPS) that by its very nature is differentiated enough to attract customers because of these unique attributes.
- IPS may be brand new, with no similar offering in the market, it may be a new process or technology that changes and improves the way something is currently done, or it may be a much superior offer of an existing product or service, that would be difficult to replicate because its unique attributes.
- The company must be in a segment that is large enough to bring revenue and profit even without being a dominant player in its vertical market.
- Executives and managers should be people with strong values, able to perform the mission, goals and business plan or be committed to bring people who will.
- Avigo’s exit strategy for its investment must be clear.