New Venturetec is an investment company incorporated in Zurich on August 11, 1997. The Company holds participations in venture companies in the areas of biotechnology and technology predominantly domiciled in the United States.
New Venturetec’s business objective is to obtain capital appreciation from well-selected companies that are at the forefront of the technology and products in their field.
The investment targets are carefully selected after in-depth analysis of people, technology and markets of potentially high quality companies in fields being viewed as of special interest. Major attention is given to the management, its capability and commitment. Influence on key management decisions as well as on strategic planning is executed. Milestones are being set and management is being reviewed. Monitoring and control procedures as well as providing up-to date reports on company progress and financial situation are an integral part of the investment management.
Venture capital investing is the process of building a business from scratch. The venture capital investments are made through different forms of securities ranging from common stock to preferred shares and convertible debt.
Venture capital can be private or public depending on the stage of the company. The company naturally evolves from its inception through generating profits if successful. Several rounds of financing at different prices are conducted in most cases.
The proceeds of such financings are used for working capital to build the business as such companies still generate losses. A company is out of the venture stage if for six to eight consecutive quarters a substantial revenue and profit increase is achieved and the outlook for the coming years ahead is for sustainable growth. At this stage the company can be private or public.
The characteristics of a venture capital investment are typically 100% risk which may result in a complete loss of the investment, lack of a market for the securities and long-term investment horizon. Venture capital offers the possibility to participate in the formation and growth of the next generation companies.