1. What is Venture Capital?

Venture Capital is a term used internationally to denote long-term capital investments in existing companies or companies under establishment by specialized investment companies and by private individuals which entail a certain degree of risk. More specifically, venture capitalists offer capital in return for participation in the company's share capital. At the same time they may also support portfolio companies on technology, organizational, commercial and financing issues.

2. What is the difference from bank lending?

In Venture Capital, the investor participates in the risk along with the entrepreneur and there are usually no guarantees or security. The venture capital company seeks to obtain profits either in the form of dividends or (more usually) long-term return on capital in the form of increase in company value / share price leading to profits, realized through sale of the investor/s stake.

3. Where do venture capital funds invest?

Venture capital can be used in companies in the initial set-up stages (seed capital) right up to the fully-developed stage (growth stage). Established companies seeking to expand or modernize may also seek venture capital; this type of VC financing is known as development capital.

4. How do venture capital funds invest?

A venture capital company does not normally purchase shares from existing shareholders. It takes a stake in portfolio companies through a share capital increase. Share capital participation may take a number of forms. Main instruments used by venture capitalists are ordinary shares; preferred shares with (or usually without) voting rights; preferred shares convertible to ordinary shares at rates dependent upon achievement of predetermined milestones (e.g. sales targets); preferred or ordinary shares to be acquired within a specific time period at a predetermined price from other shareholders; preferred shares with entitlement to a fixed dividend and participation in the profits; preferred shares with a fixed dividend (interest) even if there are no profits; a loan convertible to stocks or an ordinary loan combined with participation in the share capital.

5. What contribution do venture capital companies make?

A venture capital firm can offer to a portfolio company a range of services on an as-needed basis:
1) Assessment of the investment idea, the investment plan and the business strategy in general.
2) Assessment of company management
3) Advice on capital structure and business financing
4) Advice on company strategy, development and growth
5) Preparation for listing on an exchange.

6. How long does a venture capital investment last?

A venture capital firm does not intend to retain a long-term stake in its portfolio companies. A typically investment horizon is between 4 and 7 years, but this may vary depending on company-specific circumstances or market conditions.

7. What is a venture capital fund?

A venture capital fund in the Greek legal sense is a closed-end fund operating in line with the provisions of Law 2992/2002. Such funds are managed by dedicated VC fund management firms. Fund capital is preferably invested in companies active in key "new economy" sectors such as telecommunications, IT, e-commerce, biotechnology, new materials, and in companies whose competitive advantage is founded on the application of technology.

8. What is Attica Ventures?

Attica Ventures is a dedicated VC fund manager, subsidiary of Attica Bank.

9. Which funds are managed by Attica Ventures?

Attica Ventures today manages Zaitech Fund, a € 40 million venture capital fund whose shareholders are Attica Bank and the New Economy Development Fund (TANEO).

10. What types of companies does the Zaitech Fund invest in?

- Innovative companies with legal and actual seat in Greece.
- Preference is given to companies active in key "new economy" sectors or whose competitive advantage is founded on applications of technology derived from the "new economy".

11. Where does the Zaitech Fund invest?

Investments are carried out exclusively in small or small-to-medium sized enterprises; preferably, but not exclusively, in the start-up phase or in early stages of operation.

12. What amount does the Zaitech Fund invest per firm?

- Maximum of €2.5m per company per financing round. Consecutive financing rounds may be spaced no less than 12 months apart.
- Maximum of €8m overall investment per company.

13. What role does Attica Ventures take in the management of its portfolio companies?

It is not Attica Ventures' objective to substitute the management team of portfolio companies. Attica Ventures supports company management wherever requested or where this is considered necessary in an effort to achieve the best possible result.

14. What is the duration of a typical Zaitech Fund investment?

Zaitech Fund's participation in the share capital of a company will typically last between 4 and 7 years.