WirelessMatch, a VC funding network aimed at the wireless, mobile internet and mobile telecoms markets, has launched a partnership with angel investment network Invensco aimed at young companies in the space.
The WM Investment Pool has chosen five companies for its members to invest in, with a minimum amount of £25,000. Within that pool, investors can at any point during the first two years of investment, exchange their shares for ones in a more successful investee company. The advantages for investors, argues Wireless Match is that such an approach substantially reduces investment risk and consolidates increased returns.
Invensco’s role in this is to perform due diligence on all five companies and, once the companies have reached a certain level, help them forge strategic partnerships with major companies which can market the young company’s products to their customer base. It will also be possible for the strategic partner to invest in the business and become a trade investor.
The shares are swapped on a value basis which is based on the sum invested by the WirelessMatch Investor in one company and the current market value of the shares in the other company. Only one exchange of shares can take place in the company in which the WirelessMatch Investor holds shares.
The investor also invests at a 50% discount to the first trade investor and has a right to sell a proportion of his shares to the trade investor.