Round2 Capital Announces first Closing of a New Growth Capital Fund Focused on Austria, Germany and Sweden – Round2 Capital Partners (EuVECA) GmbH & Co KG
Round2 Capital, a provider of innovative growth capital to fast growing companies with business models based on immaterial assets, has completed the first Closing of Round2 Capital Partners (EuVECA) GmbH & Co KG. Round2 is the first fund of private and institutional investors offering Revenue Based Loans in its target markets. The fund is structured as an evergreen and admittance of investors continues through regular capital increases. Round2 Capital will provide growth capital to fast growing so called Gazelle companies in Austria, Germany, Switzerland, and Sweden.
Round2 will invest in established companies with high growth potential, either within their existing markets or through geographic expansion of an already proven business model. The investments will typically range from €300 thousand to €1.5 million per investment.
Being a generalist fund, Round2 will finance companies in different sectors provided that the fundamental growth and capital dynamics of the investment targets match the investment criteria.
The investors joining in the first Closing of Round2 Capital Partners (EuVECA) GmbH & Co KG are qualified private investors as well as established institutional investors from Austria, Switzerland, Germany, UK, Sweden and Kuwait. Some of the private investors are themselves successful entrepreneurs that are committed to support SME sector growth.
Round2 has already built a robust pipeline of suitable investment targets. There is strong demand for growth capital in the market, particularly from businesses that are built on intellectual property and thus face difficulties in accessing standard bank financing.
Round2 Capital Partners supports companies led by successful teams with a proven track record, that have already reached a minimum of €1m sales and that are cash flow positive or have a clear path to cash flow positive.
The unique selling proposition of Round2 is the offer of growth capital without diluting ownership control and without the need for an exit. This makes it possible for successful entrepreneurs to finance another round of growth and scale up their business to a higher level of valuation where they may even be in a position to access regular bank financing.
The loan agreements Round2 signs may incorporate senior debt, an equity kicker or other elements that enhance the risk-return profile of the transaction as well as additional upside for the fund, depending on the circumstances.