HRSR MEMORANDUM 03-04-1996 - Laserfiche WebLink

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. DEVELOPMENT PHASE INVESTMENT STRUCTURE In order to offset risks associated with any The Anoka County Capital Fund will struc- specific development phase,Anoka County ture investments to provide necessary levels Capital Fund's portfolio will attempt to of return, without negatively impacting a •) encompass the entire spectrum of develop- company's potential. The price,p ownership h ip ment phases excluding seed investments. and exit that the Fund negotiates will be The following definitions of development based on both the anticipated return stages apply: tial and the perceived risk associated with • Start-up Investments-Company has that investment. The Anoka County Capital completed prototype development and . Fund is a longer-term investor with exit from market research, and seeks to begin the investment sometimes occurring manufacturing, marketing and sales. between 5-10 years. • Expansion Investments-Existing ii:!iiig LEVEL OF RETURN • business seeks to expand into new The Anoka County Capital fund has set a markets, add product lines, increase minimum portfolio objective of generatin a manufacturing capacity, or apply new or '. » level of return of not less than 15%. g existing technology to new processes or products. ` EVALUATION RN• Buy-outs-Management or employee Recommendations regarding specific groups seeking to acquire a going » investment opportunities will be based on an concern in situations where the result extensive evaluation of: of an Anoka County Capital Fund's investment will be to create or retain Compatibility with the Fund's 0 eligible employment opportunities, • strategies, policies,and procedures Growth potential • Other-Opportunities which Fund • Management• Management and the Investment • Product uniqueness IN and Technical Advisory Committees • Market deem appropriate. ' Competition in • Financing requirements INVESTMENT POOLS The Fund will consider making invest iii ments through investment pools. An invest- ment pool is a group of individuals and orga- nizations that have agreed to provide capital le for investments to be made in a given geo- graphic area. The pools will use a coordinat- ed process to discover, evaluate, mentor, and II monitor investments made by the pool. The III purpose of regional investment pools is to improve an area's capacity and competence iin to deliver investment when and where it's needed. ::::::,,,,,1 ge :::.::::::: ::::::: 3 ::,,,,,,„:„ .::::„,.:,:::::