participates on its own or through syndicates with other
venture capital entities:
- By way of equity participation accompanied –
if need be- by a shareholders’ current account
and / or convertible bonds.
- In minority position.
- For an average period of 7 years.
- For sums usually comprised between
100 thousand and 500 thousand dinars.
Such participation is achieved by building
up a relationship of trust and exchange based on cooperation
between SIDCO and the leaders of the financed company.
A contract between SIDCO and the head of the company is
sealed in order to outline a process of funding which
complies with the following three rationales:
- Defining capital entry terms: Legally,
- Defining the relationships among stakeholders:
putting in place a bookkeeping and financial information
system that is able to meet the requirements and needs
in terms of information and monitoring, etc …
- Defining the way out: priority is granted
to the company’s founding manager to buy out SIDCO’s
shares or to have them bought out by one or several
individuals of his or her choosing according to the
share value at the agreed settlement date.