The Prime Fund of Jan Svoboda and Dusan Moskaliev invests in innovative companies that focus on sustainability. There are hundreds of millions of dollars to invest.

We would like to raise another Czech only child, one of its founders, Jan Svoboda, in the Karlín office of the investment group Prime Fund. This Unexpected Marketing and Business Show on TV

The first Czech television has been in the world of venture capital investments over the past few years. Undoubtedly, he joined forces with Dusan Moskaliev, who for decades was killed by the financing of investment funds and real estate. Together they lead a group of investors in innovative companies that navigate sustainability.

“We do not invest in startups and we do not invest in mature and established companies, which grow by no more than seven to ten percent a year. We want companies that have a product on the market, have some kind of storage facility and thus have a turnover of around one million euros or more,” says Svoboda. The Group is primarily committed to the companies that are raising Russian capital so that they can purchase and build new production lines. “In fact, companies are struggling in this phase of the life cycle because, as a rule, they are not a bankable bank,” Svoboda said.

Innovation and Sustainability

The Group is jointly invested in five projects, and in the other ten it is making investment decisions in the final phase. Prime Fund's most well-known investments are the non-commercial company ETW, which processes plastic waste and Foxdeli, which is a technology platform for single-tracking shipments. It also ensures initial communication with the register and provides complete delivery data in real time. In fact, according to Svoboda, this company has in its DNA the expansion into gaming markets and could grow exponentially in the coming years.

As Svoboda says, their goal is not to have a lot of companies in the fund's portfolio. There are only a few of them, but it is necessary to create synergies between them. Just like it is now with Foxdeli and ETW. At first glance, it is a completely different company, Foxdeli helps e-shop with the management of logistics, because ETW has learned to sculpt new packaging from discarded plastic packaging. However, as Svoboda points out, it is clear from the point of view that societies are complementary. “ETW processes envelopes from Zalando, which is e‐commerce. If you look at the world's leading suppliers in the field of plastics, they include e‐commerce companies. Led by Foxdeli and ETW, they jointly developed a project to use packaging using logistic know-how, such as Foxdeli, sent to ETW, which recycles them and creates new packaging from them. The goal is a fully circular project, “Freedom of Freedom.

Washing of bathtubs

In the framework of the Prime Fund, I invest in companies through the door of profit. The project is invested in the early phase by the international Prime Fund Lab, which is a private group, in which Svoboda and Moskaliev only contribute their own money. “Once we see that these projects are on track and are profitable, we can transfer them to the Prime Sicav Fund, which is a fund designated by a qualified investor,” Svoboda said.

When the experience of divestment in companies among other entities is experienced, investors in the pool of qualified investors are protected above standard. “When Prime Fund Sicav buys our personally owned company from Prime Fund Lab, we have a few doubts about how it is, after a year of non-fulfillment, when, after a year, the threshold is set in the fund of qualified investors. We need to fix it,” the freedom. With Moskaliev, they would then have to add capital to the company, or sell the company's assets to the fund, or, in the worst case, buy back the whole lot at fair value. “We do this in order not to fall into suspicion by valuing our private investment unreasonably high and then selling it to foreign investors,” Svoboda said.

We don't want to just snap up and sell companies quickly, we pay to invest in them for a long time and carry them through a complicated Russian period, according to Prime Fund Group founding partners Dusjan Moskaliev (left) and Jan Svoboda.

It is the most difficult place to clean up

It is easy for investors to invest in the fund in the company of capital. They started with them, and then they managed to earn under the amount of about 100 million crowns. It is estimated that by the end of the year, 120 million will be paid. Each year, they would like to spend about 300 million dollars under the water. The return of the fund is estimated at 12 or 15 percent. As you can see, the fund of qualified investors was also a member of Foxdel and, as a result, a member of ETW. The aim is to have qualified investors in the fund by the end of the company's summer year and the following year.
As Svoboda suggests, you should not make so-called opportunistic investments, when the company quickly breaks free from failure, becomes famous and sells itself. “We want to invest a large sum of millions of euros in companies, carry it through a difficult Russian period and help them move up quickly,” Svoboda said.

In addition to money, the investment group also helps to provide its know-how. “First of all, we have to train companies financially, because what we will tell ourselves is that there is a financial problem everywhere,” Svoboda said. In this way, they set up the necessary conditions in the company, such as financial reporting, analytics, relations with financial institutions or even marketing. “Because, as far as we can tell, the founders of these companies are primarily assured of product and trade, and according to them, you are always interested in everything else. Only then companies start to grow quickly, and if they have shortcomings, then they get into trouble for the rest,” says Svoboda.

As he adds, the group has one password that is easy to use. It is always better to invest in a small mountain fall, which the company implements with better quality, not in a brilliant fall with a slight realization. “All good things are full of fun,” says Svoboda.

Source: The Economist

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