Frequently Asked Questions

1. How much does KOBI Venture Capital Investment Trust Incorporation invest in projects?
KOBI Venture Capital Investment Trust Inc.'s investment amount depends on the project's capital necessity. Investment brackets differ as such; for projects at their early stage, approximately 250.000 USD, for information technology sector projects which have an existing company, at least 500.000 USD, and for other sectors, a minimum 1M USD to a maximum of 5M USD.

2. How long is the application evaluation process ?
This process varies depending on the entrepreneur's speed of sharing and supplying the requested information. This process is completed within a 3 weeks period.

3. Does KOBI Capital Investment Trust Incorporation purchase majority shares in the companies to which it participates?
KOBI Venture Capital prefers to be a minority shareholder with a maximum 49% steak and to have the royalty rights. KOBI VCIT may also purchase majority shares if the circumstances require.

4. Is KOBI Venture Capital Investment Trust Incorporation a credit institution?
KOBI Venture Capital does not provide loans. It provides capital contribution and participates in companies.

5. What are the qualifications that an entrepreneur should have?
We prefer to work with vision holder entrepreneurs who are well educated, honest and possess a high commercial well-being. On the other hand, we require entrepreneurs to have full knowledge and control over their business, including technical details such as production. Management skills are a must along with market and customer base awareness. Applicant companies should have the potential to grow with their unique way of product and service offerings.

6. In which sectors does KOBI Venture Capital Investment Trust Incorporation invest ?
There are no strict restrictions on the sectors we invest.

7. Are all applications accepted?
Applications made by companies which operate in a competition intense market and/or who do not have a distinctive advantage over their competitors are not accepted. For detailed information please refer to our website sections "Our investment criteria" and "Strategy".

8. Are applications made by companies in debt taken into evaluation?
Applications made by companies possessing tax, social insurance and short term bank and commercial debts when their future cash flows are scrutinized, are subject to further investigation. Applications are rejected in the case where these debts are in the amounts where they are deemed be unsustainable.

9. In which areas of operation is the invested capital to be utilized?
Capital supplied can be used in fields where investment return is available in the short term such as the recovery of the company 's operational capital, research and development, new product development, machinery & equipment investment for the purpose of a capacity increase, small scaled constructions and alterations, personnel employment etc. No investment shall be made in companies which need capital for only land, building and construction investments as well as for clearing debt.

10. What are the terms of participation for KOBI Venture Capital?
KOBI Venture Capital participates in the company to be invested through a capital increase and with a right of priority restriction. No participation is available through direct purchase of shares by a direct transfer of funds to the company and it's owners.

11. How are company trade secrets and technologies respected?
During the phase of origin and negotiation, a confidentiality agreement is signed between parties to protect the parties ' rights and maximum effort is shown to protect respective trade secrets.

12. How and by whom are the company's feasibility prepared?
Feasibility studies and the company financial – legal audit is executed jointly by KOBI Venture Capital and investment consultancy firms. Most of the costs are bared by KOBI Venture Capital but project owner entrepreneurs are also requested to cover the costs at a specified rate. During the feasibility studies, along with the company's current position, cash flow estimations for the next available terms are evaluated. Feasibility reports and financial – legal audits are not submitted to the entrepreneur. Instead, a brief information memorandum is presented.

13. How are company valuations made?
The Company valuation is assessed by adapting cash flow projections of the company for the foreseeable following years into today's figures and also by considering past and current performances and debt – equity data analysis of the company.

14. Does KOBI Venture Capital interfere in company management?
KOBI Venture Capital does not interfere in the company's daily operational process.However, it plays an active role in taking strategic and significant decisions related with the company.

15. Does KOBI Venture Capital take part in company management?
Depending on the percetage of shares owned, KOBI Venture Capital appoints at least one member to the board of directors, one member to the audit committee and also might appoint a finance manager if and when required.

16. When does KOBI Venture Capital plan to exit from the investment? What are the exit strategies?
KOBI Venture Capital plans to exit from investments in an average of 5 years. Depending on the investment sustainability and its progress, exit strategies include the the sale of acquired shares either to the original owner or a third party, an initial public offering or liquidation.