What is NekkoSystem?
In any company there are the so-called stakeholders, people who, without being partners of the company, have a relevant role in its development. They can be clients, collaborators, suppliers, mentors, etc.
In the background, this figure takes on a lot of relevance, at least from my point of view. A fund is formed by a group of investors called Limited Partners (LPs) and managed by fund managers or General Partners (GPs). The latter present an investment thesis and they manage capital under a mandate of investment and disinvestment, in a given period, geared to a type of company, sector, region, etc. The investor thesis is previously explained to the LPs, who put their trust and their capital into it in order to gain future financial return on investments/divestments.
In order to carry out these activities, we cannot rely solely on the identification of companies that come to us or that we see in events where startups are presented. The process is more complicated, and we will define it in the following stages:
- Scouting: The identification of companies in the market that are related to our investment thesis and that may at some point an investee.
- Benchmark: Comparable companies that allow us to see if similar companies in the same or another region are doing something different and comparably allows us to choose the best player.
- Investment: When you decide to invest in a company. It is a delicate process where a lead investor intervenes and a due diligence is carried out, in addition to arrange for the agreements between others, entry and exit modes.
- Follow-up of the investment: This is where the most value must be contributed, participating in the advice and accompanying the company so that it does not only have money at its disposal.
- Disinvestment: When the fund divests its position in the company, making its shares liquid, through a secondary sale of the company, an IPO or a build-up, in which shares of the merged company or the buyer are obtained.
These five points, although very obvious to everyone in the digital sector, are worthy of a deep analysis.
For example, in point 1, the 45% of the operations that end up being invested in a series A are generally presented by other funds. This implies that a fund must maintain excellent relationships with other funds to have opportunities for identification, co-investment, expansion to subsequent rounds and an eventual sale.
In section 2, to have a team that is in contact with the events within this sector, demo-days, etc. and to maintain exhaustive contact with accelerators, venture builders, innovation clusters, etc is the key to getting first-hand data.
In section 3 on investment, previous experience with other funds, with the entrepreneurial team and with a good team of lawyers is the key to avoid friction.
Section 4, as we have said, is where stakeholders play an essential role. I have seen companies in which some funds (fortunately only few) only ask for financial and business reports and do not contribute any value. And I’ve seen entrepreneurs put their board to work in the most efficient way to align business objectives with their investors’ network.
We are talking about potential clients, corporations, events, access to greater financing, new rounds, companies with which to consider a collaboration or even a merge. This is the most critical point where entrepreneurs must demand more from their investors and investors must work to have at their fingertips the resources that allow them to contribute to the company’s success.
The 5th point, disinvestment, is a consequence of the great majority of times the work that the entrepreneurial team has done, but if there has been value on the part of the investors, the probability ratio of success is multiplied. And a good disinvestment is a company’s mark of success.
At Nekko, we have spent years building what we call NEKKOSYSTEM, which is nothing more than our own ecosystem, but one thought very consciously. Among them we have:
- Leading Entrepreneurs
- C-level executives of large corporations.
- Innovation Centers
- Investment funds from many countries and of different sizes.
- Investment funds of corporations related to our investment sectors.
- Venture Builders
- Investment Banks
- Public entities
- M&A Boutiques
- Large consulting firms
- Investment associations at regional, state and global levels
- And a team of professionals fully dedicated to our strategy.
It is a way of calling our stakeholders in a way that identifies with our values. A way of trying to protect our investments in a way that can offer tangible value to entrepreneurs.
Trips, events, thousands of hours of meetings, commercial agreements with corporations, even having equipment on the premises of innovation centres, clusters, etc.
The effort of any company, but brought to our sector. We are aware that everyone at Nekko is a NEKKOSYSTEMER and that this is what makes us different, better and attractive for a company.