TIPS

About Expon Capital

 

We’re Luxembourg-based venture capital firm established in 2015, committed to investing in innovative companies across Europe, Israel, and North America. With two primary investment strategies, we manage the Luxembourg-Seed focused Digital Tech Fund (3rd Vintage) and a Series A/B European fund targeting the UN Sustainable Development Goals (UNSDGs).

 

Understanding our Investment Focus

 

Geography:

    • Europe: At least 70% of our investments.
    • Additional Regions: Israel, North America, and occasionally elsewhere.

 

Stage Agnostic:We invest across all stages but primarily focus on later-stage companies. We reserve funds for early-stage investments, with the intent to deploy more capital as companies mature.

 

Check Sizes:

    • Early-Stage (Series A): €300K – €1M (post-MVP, post product-market fit, with traction).
    • Series A/B: €1M – €5M (post product-market fit, with demonstrated revenue growth).

 

Co-Investment Potential:We collaborate with our LPs to increase investment amounts when necessary, leveraging SPVs for significant opportunities.

 

Getting in Touch with Us

 

Our team reviews over 2,000 investment opportunities annually, averaging 38 new deals per week. To streamline the process and increase your chances:

 

Warm Introductions:

    • Connect through someone in our network who can recommend you. Use platforms like LinkedIn to establish a connection.
    • Tip: A warm intro significantly boosts your chances of getting noticed.

 

Submit a Complete Investment Package:

    • Email: Send your full investment deck and financial projections directly via email in English.
    • Downloadable Files: Ensure your files are downloadable for offline access (e.g., via Docsend, Dropbox).
    • No NDAs: We typically do not sign NDAs at early stages. Check why most VCs don’t sign NDAs.

 

Avoid Common Pitfalls:

    • Do not send teasers or emails asking if we’d like to see your deck.
    • Refrain from follow-up calls or emails just days after your submission.

 

Find our emails on our website, or you can apply directly through our contact page.

 

Our Investment Process

 

Stage 1: Initial Screening

 

Logging Opportunities:Every submission is logged and reviewed by our team.

    • Review Frequency: Weekly, during our Monday deal-flow meetings.
    • Criteria: Business opportunity, company status, previous funding, and location.

 

Important Notes:

    • No deck or financials = stuck in Stage 1.
    • Non-English submissions = stuck in Stage 1.
    • 74% of opportunities are discarded at this stage.

 

Stage 2: Detailed Review

 

Partner Review:If a partner is interested, the deal progresses to Stage 2.

    • Meeting: If we’re interested, expect a 30–60 minute meeting where we focus on assessing the investment’s potential.

Outcome:

    • 68% of deals are discarded at this stage, with only 8.1% progressing further.

 

Stage 3: Partner Sponsorship

 

Deep Dive:A partner who believes in the deal involves a second partner (the “buddy”) for further analysis.

    • What they will do : Market analysis, differentiation assessment, ROI modeling, and draft term sheet preparation.
    • Expect calls with both partners and reference checks.

Outcome:

    • Only 0.46% of opportunities move to the next stage.

 

Stage 4: Team Approval

 

Full Team Review: The deal is presented to the entire team for unanimous approval.

    • Presentation: 30-minute presentation followed by 30 minutes of Q&A.
    • If approved, we’ll provide a term sheet quickly.

 

Stage 5: Due Diligence

 

Final Checks:Legal and financial due diligence is conducted, and final documents are prepared and signed.

Completion:After shareholder approval, Expon Capital wires the funds, officially making you a portfolio company !


Portfolio Management

 

Once the investment is finalized, the company becomes part of our portfolio. We aim to invest in 5-10 new companies annually, excluding refinancing deals.

 

What You Should Know

 

Our investment process is designed for efficiency, with a focus on selecting the best opportunities. Please understand that due to the volume of submissions, we provide detailed feedback only in later stages. For the best results, ensure your submission is thorough, complete, and aligned with our investment criteria.

 

Check our contact page to reach out to us.

 

Remember: We invest in 1 out of 400 companies. To maximize your chances, take the time to understand our process and requirements. We look forward to potentially partnering with you.