Nature of Investments
In general, the nature of investments will be as follows:
- Convertible redeemable preference shares or convertible notes.
- Preference for ultimate minority holdings of between 10% to 40% or a structure that involves dilution through successive funding rounds.
- Initial Investments of approximately $1.5 - $2 million invested in tranches, determined by milestones. Around $1.5-$2m will be reserved for follow-on funding.
- The funds will be used for either production engineering and/or initial marketing and should match an already spent R&D expenditure of $1.5 million.
- All investments will have shareholder agreements.