Investing in venture capital means capitalizing on innovation. Individual qualified investors, family offices, and sovereign state funds invest in venture projects because venture capital investments have delivered the highest returns of all asset classes over the past 10 years. Expecting to generate >30% p.a. return, investors generally prefer to invest no more than 10-20% of their free capital in venture capital deals; this amount is enough to increase their total wealth significantly. Venture capital typically does not suffer from daily price fluctuations, and a low correlation to both stock and bond markets can provide portfolio stability if well diversified.
UNLEASHING THE POTENTIAL OF THE CZECH REPUBLIC
The Czech Republic is a disruptive innovation hub and one of the most innovative powerhouses in Central Europe. It is home to exceptional founders dedicated to building the boldest technology solutions globally. As this immersive opportunity is yet to be unlocked, incoming investors are in a position to harvest the full potential from the Czech Republic and capitalize on the thriving technology ecosystem. At this point in history, Czech ventures are underfunded, despite the vast number of early-stage opportunities when valuations are most attractive. We believe it is an excellent time to invest in Czech businesses pursuing transformative, cutting-edge technologies - venture capital in the Czech Republic is an opportunity to be chased right now.
TECHNOLOGY LEGACY OF THE CZECH REPUBLIC
The Czech Republic is much more than just the automotive industry (Skoda), footwear production (Bata), or beautiful glass and crystal artworks. Did you know that soft contact lenses, created by Czech chemist Wichterle, are the most famous invention of the Czech Republic? Surely, you've heard of dactyloscopy – an identification tool used for criminology today, thanks to Czech scientist Purkyne, who discovered basic patterns of fingerprints. Another example of Czech innovation potential is the small, portable electric oven called 'remoska', which is especially popular in the UK.
CZECH REPUBLIC – GLOBAL LEADER IN VARIOUS FIELDS
Not only are Czech inventions improving the lives of millions of people around the globe, but the Czech Republic is also a global leader in various fields. In cybersecurity, two out of the ten best antivirus companies in the world come from the Czech Republic (Avast, AVG). When it comes to 3D printing, 10% of the global market of 3D printers is covered by the Czech Republic. Surprisingly, the Czech Republic contributes to 30% of the worldwide production of electron microscopes. The Czech Republic is a global leader in various fields and has outstanding technological potential yet to be discovered.
partnering with efren capital
Efren Capital provides its limited partners with exclusive access to Central European venture capital deals and serves as a gateway to investing in Czech innovations. By acting as the 'eyes and ears' in Central Europe, we lend ourselves to being an extension of the investment arm for our investors. Motivated by earning outsized financial returns for limited partners, we carefully curate our venture deals. An invitation-only group of investors is granted a pathway to superior investment opportunities that are not available by any other means. Working with a special token of commitment, at Efren Capital, we all have a personal stake in the game.
how we deliver
value to investors?
1
UNIQUE DEAL FLOW
Efren Capital has one of the most exceptional deal flows in Central Europe, thanks to the Czech-Singapore Chamber of Commerce, its deal flow partner. We source aggressively inside and outside our sphere, talking to hundreds of founders every month. This massive and consistent deal flow enables Efren Capital to handpick top-tier venture opportunities. Investors maximize their investment potential by participating in our fund, gaining exclusive access to a carefully vetted portfolio of groundbreaking innovations and high-growth companies. In doing so, limited partners enjoy streamlined exposure to the robust technology ecosystem of the Czech Republic.
2
DERISKING INVESTMENTS AND DIVERSIFICATION
Efren Capital derisks investments by adhering to a rigorous investment selection process. After an initial review, we carefully evaluate the product, market, competition, team, traction, and other parameters. Creating a portfolio of approximately 10-12 investee companies also helps minimize risk compared to investing in individual companies. Our hands-on approach to venture capital provides investors with a unique level of control. We invest in specific expansion plans with calculated returns, such as entering new territories or scaling up sales teams. At Efren Capital, we believe that diversification is necessary for effective wealth generation. This is why we do our best to diversify across verticals, technology types, product stages, revenue models, founder profiles, and exit strategies.
3
rigorous due diligence and transparency
Efren Capital undertakes extensive, professional due diligence on every investment opportunity. Investors are granted access to our secure data room, where the results of all due diligence and checks are thoroughly detailed. To ensure we have the fullest insight possible, Efren Capital often works with third parties. Additionally, our investment commission provides feedback on each venture deal. We are conscious of the great deal of trust that our investors put in our fund, as well as the responsibility that comes with it. We aim to live up to this responsibility with the utmost transparency. Efren Capital monitors and reports on each company's performance and KPIs on a regular basis. These updates keep investors informed and demonstrate the full transparency of our processes and decisions.
4
DEAL-BY-DEAL COLLABORATION
Limited partners investing more than €4 million in our fund are entitled to deal-by-deal collaboration. Such investors are provided with the right to endure follow-on funding to winners. The priority on investing additional capital on a deal-by-deal basis allows our investors to directly participate in investments they find most appealing and back deals that particularly resonate with them. This personalized investment opportunity is a chance to acquire significant equity in our existing portfolio companies experiencing significant commercial success and jump into hot funding rounds just before the valuations of such business champions shoot up. Based on selected interests and preferences, the priority is exercised by follow-on investing via an SPV (special purpose entity) alongside Efren Capital's fund.
proven track record
in business expansion
ENGAGED INVESTORS WELCOMED
Investors with an engaged approach are always welcome at Efren Capital. Our fund is not just a passive investor base. Many of the investors are successful founders themselves, experienced operators, and well-connected entrepreneurs. We are very appreciative of limited partners providing feedback to our founders, helping the portfolio companies with advice and support on the ground, or opening opportunities through their network. Such investors are considered for non-executive board roles at our investee companies or appointed as advisors to the fund. Efren Capital truly esteems limited partners adding value, actively participating, and impacting the investments.
investment strategy
Are you interested in learning about our investment strategy?
International investors are invited to visit the Czech Republic – Efren Capital will be happy to help plan your itinerary, arrange the stay, show you the hidden corners of the country, and spend quality time with you. Building trust is very important to us. Explore the thriving Czech technology ecosystem, meet Czech founders and entrepreneurs, enjoy sightseeing in Prague, and taste delicious Czech cuisine!
The company Efren Capital SICAR, investment vehicle in risk capital, k.s.i.l., ID No. 21530378, with its registered office at Dandova 2619/13, 193 00 Prague 9, incorporated in the Commercial Register maintained by the Municipal Court in Prague, Section A, Insert 80549 (hereinafter the “Company”), provides asset management comparable to administration pursuant to section 15 of Act No. 240/2013 Coll., On Management Companies and Investment Funds, as amended (hereinafter referred to as “ZISIF”). The Company is registered in the register maintained by the Czech National Bank pursuant to section 596 e) ZISIF as a person managing assets pursuant to section 15 para. 1 of the ZISIF. The Czech National Bank does not supervise persons registered in this register, and their activities are not subject to supervision by the Czech National Bank. The Company has a reporting obligation in accordance with EU Regulation No. 231/2013 supplementing European Parliament Directive 2011/61/EU AIFMD. This website is for informational purposes only. The purpose of the website is not an offer or invitation to entrust funds to the Company's management or offer to buy or sell any investment instrument pursuant to ZISIF or Act No. 256/2004 Coll., On Capital Market Undertakings, as amended.