Investment Focus

The Momentum Fund:

Has a broad technology and industry focus. It is happy to consider investments in almost any area of technology.

Is a value added investor. Momentum is heavily involved in assisting the development and growth of each investee.

Invests in companies at various stages of development, including seed, start-up and early expansion stages. Preferably however, the business should have progressed beyond being just an idea. It should have the following aspects in place:

 

- A management team with relevant experience in the target industry
- A product that is either complete, in prototype or proof of concept
- Customers who have purchased or will commit to purchasing the company's product
- A business plan for commercialising and exiting the opportunity
Will not invest in companies where it would only obtain a small, passive shareholding. The preference is to have an equity stake of around 20-40% in its investees, with the company's key personnel holding substantial equity stakes.
Has a strong preference for investing in Pty Ltd companies that have direct ownership of the intellectual property that is to be commercialised.
Seeks to invest in companies where the Fund can have a realistic expectation of achieving its benchmark investment return of ten times its investment in five years - an effective rate of return of 58% compound on the investment.