- The Applicant Enterprise (“AE”), is evaluated against five primary
investment criteria:
*
The AE must be a private enterprise desirous of achieving
'public' status in the foreseeable future and having the potential
to attract financing under determinable circumstances, in the public
and/or private venture capital marketplace. .
*
The AE must be “market driven”, and have the potential for
competitive advantage in a niche growth sector of a healthy industry
perceived to be attractive to investors.
*
The AE must have qualified key operating personnel with
applicable expertise and experience available or identified to direct
the AE to success and profitability.
*
The AE must be able to prove and be thoroughly familiar
with its target market and its competition as well as have the potential
to capture and maintain an aggressive market share.
*
The AE must be able to demonstrate that it has proprietary
and technically sound products, or a unique manufacturing or marketing
process and capability.
- These prerequisites in place, Capital House may participate with
other venture capitalists, private investors or syndicates, in fulfilling
the AE’s seed capital requirements. In addition to Capital House's
role as a fundraiser, in some instances Capital House will underwrite
the AE’s promotional, legal and audit costs of going public. Capital
House will aide in structuring the share capital to meet the requirements
of a public company, and if asked, will help to arrange the underwriting
syndication. This funding and these services are generally financed
by the AE through the sale of a minority equity position to Capital
House.
- The mid-point in the Capital House investment cycle has been reached
when a Capital House seed capital investment has attained public
trading status. Upon going public, the Capital House seed capital
investment transforms into publicly traded stock, becoming part
of the Capital House managed "Enterprise Growth Portfolio".
- At some point Capital House may divest itself of enough publicly
traded stock to cover its original investment costs, thus minimizing,
if not eliminating downside risk. It is Capital House's belief that
a substantial percentage of public companies in its stock portfolio
will realize their corporate goals and mature into major corporations.
These successes will be reflected in the value of the Capital House's
Enterprise Growth Portfolio.
- The cash resulting from the sale of a portion of the publicly
traded stock will be returned to the Capital House treasury ...
and so the Capital House INVESTMENT CYCLE begins again.
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