Various studies have concluded that angel investment groups have exit multiples of 2.6 times their initial investment with a holding period of about 3.5 years. This equates to an average annual return on investment of about 27%. Source: Rob Witbank of Willamette University, Symfonie Capital research. There is no guarantee or assurance that any level of return can be achieved. Future returns may differ from prior period returns. Investors should carefully consider the risks associated with any investment, including the risk of loss of the entire investment. Historically, seed and venture capital funds have been among the best performing asset classes, generating average annual return of more than 20%. Source: Venture Economics, HFRI Equity Hedge Invest, Rob Witbank of Willamette University, Symfonie Capital research. There is no guarantee or assurance that any level of return can be achieved. Future returns may differ from prior period returns. Investors should carefully consider the risks associated with any investment, including the risk of loss of the entire investment.
Investing in startup and early stage companies is complex and time consuming. An investment in the Symfonie Angel Venture Fund simplifies the process and provides several benefits.
Studies have shown that angel investors can generate superior returns by:
A study sponsored by the Ewing Marrion Kauffman Foundation and the Angel Capital Education Foundation drew the following conclusions: Adding value counts – Investors who worked closely with their investee companies experienced 3.7X exit multiples compared to 1.3X exit multiples for relatively passive investors. Experience is critical – Exit multiples were twice as high for investments in ventures connected to investors’ industry expertise. Investors with relevant industry experience had fewer failures and more successes. Due diligence pays off – Investors who spent more than 20 hours doing due diligence had average exit multiples of 5.7X while investors who spent fewer hours had average exit multiples of less than 2X. Where investors spent 40 hours doing due diligence exit multiples were more than 7X.
The following is a general list of questions investors considering making an investment in Symfonie Angel Ventures often ask. The list does not represent the complete set of information on which investors should base their investment decision. Investors should also read the Offering Memorandum, Limited Partnership Agreement, Due Diligence Questionaire and other materials about the Fund as Symfonie may produce and make available. Investors should also consult with their financial advisors. This list does not constitute an offer of investment advisory services or a solicitation of investment.
Investing in the Fund is easy.
Read the Fund’s Offering Memorandum and Limited Partnership Agreement.
Contact Symfonie if you have questions or concerns. You can also review our Fund FAQ, Risk Disclosure and other materials about the Fund. Investors should also consult their own independent financial advisor.
Complete and return your subscription agreement.
Send your investment via secure bank transfer.
The targeted holding period for each investment the Fund makes is three to five years.
As the fund liquidates its investments the fund will make distributions of capital and capital gains.
US limited partnership, open to US and non-US investors. The Fund is registered with the US Securities and Exchange Commission as a private equity fund. Fund accountants – Liccar & Co (www.liccar.com)
2% management fee /15% incentive fee, subject to 8% hurdle rate
No incentive fee is charged until investors have received all their initial capital plus a net return of 8% annually.
€100,000**On a case-by-case basis the General Partner may accept as little as €10,000
Successful investing begins with a disciplined investment process. Our process is divided into several steps.:
We find innovative businesses founded by capable entrepreneurs. We look for businesses in industries where the experience of our team of professionals can be most applicable.
We analyse each company’s business plan. We rate each opportunity based on our investment screening criteria and the risk/reward potential.
We do background checks on the company and its key shareholders and managers. We conduct product research, competitive analysis, business plan analysis. We understand the challenges and risks our investee companies face and identify opportunities for us to add value.
We establish terms of each investment so we can protect our rights as investors.
We monitor the performance of our investee companies. We assist and support them as necessary while they execute their business plans.
The last step in our process, but also the start of the process. Before we make an investment we consider how we ultimately will realise the returns on our investment and what the company must do in order to get to the point where our exit can be realised. Our targeted exit point is 3 to 5 years.
We have a continual pipeline of potential investments to review. We source opportunities through the network of contacts developed during the long careers of our investment team. We get referrals from angel investment networks around the world. We also accept applications directly from companies seeking finance.
We have a defined list of screening criteria. We evaluate each company based firstly on how well it meets our criteria. We analyse each company’s business model and evaluate the strength of its management team. We look at the potential rewards and risks of investment to determine the range of expected return on investment.
Research and due diligence is a risk management tool as well as an investment tool. We do background checks on the company, its management and shareholders. We inspect the corporate records, accounting and financial statements, and legal issues. We analyse the competitive environment, the opportunities the company sees and the risks and challenges the company faces. We consult outside, independent advisors.
We negotiate deal terms with a view to protecting our interests as investors.
We meet with our investee companies regularly to review their performance and discuss new business development initiatives. By taking an active role in the business and governance of our portfolio companies we can be a resource to management, helping them make operating decisions and introducing them to potential suppliers, customers and investors.
This is the last stage of our investment process, but also in many ways the beginning. One of our key baseline investment criteria is to evaluate the possibilities that we will be able to exit our investments within our targeted horizon of 3 to 5 years. Once we make an investment we work with our portfolio companies to ensure they are actually preparing the base of documents, policies and procedures they will need in order to negotiate an eventual transaction that will create the exit opportunity. We also are continually evaluating potential exit opportunities as and when market and business conditions change.
Once risks have been assessed the task at hand is to decide how best to deal with them. The options are as follows:
Sometimes the best thing to do is walk away. Each angel investment can result in 100% loss of capital. Successful angel investors have good returns in part because they find good companies, but also because they are selective. They ask many questions, they have the benefit of experience and lessons learned and the knowledge and understanding they have gained to their selection process.
Angel investors who take an active role and work closely with their investee companies can mitigate many of the risks stemming from core business issues. One of the major reasons why angel investors can generate higher than average returns is because they have relevant industry and business experience they can draw on to add value to their investee companies. Active investors can mitigate risks across the spectrum through their involvement with the investee companies. Here are some examples:
One of the major reasons why angel groups and angel funds can be successful is that they have highly specific knowledge experience and skills sets that are required in order to make good angel investments. Their value-added comes from the following activities:
When evaluating companies to investing, map or benchmark the characteristics of the investee companies against a set of key risks. Set certain criteria for investments you consider acceptable. Some criteria worth considering might be as follows:
Consider your risk tolerance not only in the present, but where it is likely to be in the future. Invest only what you can afford to lose and take into account the fact that your angel investment might not be liquid when you will have strong need for liquidity. Review angel investments in light of FX fluctuations. Evaluate whether or not you need to hedge all or part of your investment against adverse FX fluctuations. Take time to exit into consideration. Select investments that are likely to generate return on capital well before you expect you are likely to need that money. Diversify your angel portfolio. Take into account that failure rate within angel portfolios may be high. Estimate the returns you can expect from investments that are successful and estimate the failure rate you are likely to experience. Research suggests that failure rate among angel investments is as much as 50%. On the other hand, successes can result in exits at multiples of 3X to 30X. Most literature we have reviewed suggests that beyond 15 companies the benefits of further diversification are marginal. When building a portfolio, take into account how similar are the businesses among the portfolio. Having mix of companies that operate in a variety of industries, and sell a variety of products is also important to generate benefits from diversification. Diversify your overall portfolio. Angel investments by themselves do not constitute a complete and diverse investment program. Ensure your financial portfolio has a mix of assets that are appropriate for your financial situation.
When you invest with Symfonie you invest with a team of professionals who have the wide range of skills and expertise necessary to find good companies, conduct extensive due diligence, negotiate favourable deal terms and work to make your investment successful. Investing with Symfonie provides the following benefits:
360Cities.net is the web’s largest collection of stunning interactive panoramic photos, created by a network of thousands of the finest panorama photographers from around the world. Since its founding in 2007 360Cities has become uniquely positioned. Thousands of photographers around the world upload their content each month and the Company has partnerships with Google Earth, Microsoft, Nokia Maps, Oculus and Flipboard. 360Cities offers commercial licensing of its vast library of high quality 360 content to leading digital publishers, including The Sunday Times Online, Daily Mail, Die Welt and McGraw-Hill, as well as leading advertising agencies, mobile app and game developers, film and video producers.
Venzeo solves an important problem for businesses that have to create, store and maintain photo documentation. The Venzeo application installed on a mobile telephone, digital camera or tablet enables users to upload photos that are independently certified with timestamp and gps co-ordinates to secure file servers. This saves businesses significant time and costs. Key use cases are in the construction industry, waste processing, merchandising, advertising, retailing, insurance and telecommunication. Photo documentation applications are a relatively new, undeveloped market. Many companies have large numbers of field staff who manually upload and tag photos and can increase productivity by adopting the automated, customisable solution Venzeo offers. Venzeo benefits from proven demand, a well developed product and a base of knowledgable, value-adding shareholders, such as Telefonica’s Wayra accelerator.
New Senior Generation provides senior citizens a user friendly service including physical outreach and tablet computer with phone app. geared especially for their needs along with an internet based ecosystem of products and services. In the Czech and Slovak markets there more than 2 million senior citizens. A market share of as little as 1% or about 23,000 clients can generate more than €5 million in sales and open up further e-commerce opportunities in the senior sector. Furthermore, one of the principles is the Czech Aging 2.0 global platform ambassador, which affords interesting potential for “first peek” opportunities at other senior related startup opportunities on the market. The Slovak interface etc. are ready to be launched.
SymCredit, a wholly owned subsidary of Symfonie P2P Ltd, is building a Peer to Peer (P2P) finance platform in Central Europe. SymCredit will make business and consumer loans in the Czech Republic and Poland. P2P is one of the fastest growing areas of finance. P2P platforms enable investors to earn attractive interest rates by investing in loans made to credit worthy borrowers. The Czech Republic and Poland together represent a growing lending market of about €50 billion. Savers in these two countries have amassed nearly €200 billion in deposits. The Angel Fund made a seed investment into SymCredit and the Company is now raising additional finance from angel investors in the US, the UK and the Czech Republic.
The material presented via this website is for informational purposes only. Nothing in this website constitutes a solicitation for the purchase or sale of any financial product or service. Material presented on this website does not constitute a public offering of securities or investment management services in any jurisdiction. Symfonie Capital, LLC is registered with the United States Securities and Exchange Commission as an Investment Advisor pursuant to the Investment Advisors Act of 1940. Our ADV filing is publicly available. © 2014 Symfonie Capital, LLC.
Investing in Peer to Peer loans and startup and early stage companies involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. The Investments presented in this website are suitable only for investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. For further information see our discussion of investment risks.