Go4Venture only works on the basis of a long-term partnership with its clients and their existing shareholders.
The strength of the relationship is underpinned in our contractual arrangements, which all include:
- A consulting retainer fee – which reflects the intensity of Go4Venture’s support and our desire not to pressure our client into the first transaction possible but rather identify the right opportunity.
- A cash success fee – typically as a percentage of the value of the transaction (if it is the right proxy for the value created for our client).
- An equity kicker – which reflects our long-term alignment with our client and the value we deliver above and beyond that of a classic fund raiser. The equity kicker is usually in the form of warrants.
- Co-investment rights – as part of our long-term relationships with our clients, we would like to have the possibility to co-invest with the investors we are instrumental in getting to invest in the company. We obviously invest on the same terms and condition as other investors and are purely passive investors. It however gives us an extra incentive to follow our past clients, even after the active part of our engagement has been completed.
It is worth noting that in all our assignments we insist on a Board Observer position. By being observers on the Board, we are able to understand the perspectives of all parties and help them converge on a consensus view of the way forward.
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