Investment Strategy

Sarsia Seed invests in early-stage start-up companies operating in the areas of Energy / Cleantech and Biotechnology / Life Sciences. Sarsia Seed intends to invest in 30-40 companies which are at a seed stage of financing.
A typical first round of investment will be in the area of 1-5 million NOK for a 10% to 40% ownership stake.

Sarsia Seed is keen to attract co-investments from professional and/or corporate investors as early as possible so as to carry prospects forward at the fastest possible pace.

Investment sectors

Early-stage start-up companies look for more than just financial support from their investors. Thus, we aim to add value to our investments by contributing our expertise towards the companies’ technological and/or commercial development. Sarsia Seed invests nationwide in Norwegian companies.

Energi/Cleantech

  • Alternative energy technologies (Cleantech)
  • Climate and purification technologies (Cleantech)
  • Electric power control and monitoring technologies
  • Measurement technologies, instrumentation and process technologies within the energy/oil and gas sectors.
  • Oil and gas exploration, production, transport and refinement technology
  • Drilling and well technologies

 

Biotechnology/Life Sciences

Sarsia Seed is the only seed fund in Norway specialising in the field of Life Sciences.

  • Biomedicine and Biotechnology
  • Medical instrumentation and technology platforms
  • Medical diagnostics and other biotechnology products
  • (Bio) pharmaceuticals and neutraceuticals
  • Marine and aquaculture technology

Investment process

Sarsia Seed’s processing procedure is as follows:

Initial contact
Over a period of a short number of days, an evaluation is made to establish whether or not the prospect falls within our area of investment, and to determine if it has sufficient commercial potential.

First meeting
This is basically an information exchange session to determine the degree to which the investment opportunity fulfills our investment criteria.

Evaluation phase
(normally 4-6 weeks duration)

Comprehensive assessment by Sarsia Seed of prospect business plan, vision, stages of development (milestones), and capital requirement.  An appraisal of the management, technology, ownership rights, market potential and business model will also be made.

Terms negotiations
(normally 3-6 weeks duration)

The parties work together towards the establishment of a Term Sheet which will define the main elements to be later incorporated in an Investment Agreement and Share Holders Agreement. It is at this stage that the investment case is usually put forward to the board of Sarsia Seed for review and decision. Concurrently, negotiations will also take place regarding the establishment of the Investors’ and Share Holders Agreement.

Due diligence
(normally 4-6 weeks duration)

During this process, careful scrutiny is made of all material and information pertinent to the investment case to ensure all such matters have been disclosed, and that they are certifiable and valid. Typically, the due diligence process entails an assessment of all financial, legal, and technical (including IPR) aspects of the case. The inquiry process may uncover the need for further verification and/or entry into further contractual agreements.

Contractual agreements are formalised and entered into, and the investment is implemented

Post-investment activities
Sarsia Seed will, as an active shareholder, work to develop the company through representation on the company’s board and the supply of capital and/or expertise, through a strategy which the parties are commonly agreed upon. Since significant risk is associated with the progress of such early-stage prospects, development milestones are actively used to demonstrate prospect value growth and as a means of mitigating the risks involved.

The period of time it takes for a prospect to go from initial screening to investment implementation will vary from company to company. The shortest process time to date has been four weeks, whilst more complex cases can take anywhere between four to six months.

Investment criteria

  • Unique and protectable technology
  • Sustainable, scalable and well defined business model
  • Aimed at an attractive/growing market with potential for international expansion
  • Commercially oriented founder and/or competent team
  • Well-defined development plan with clear milestones
  • Norwegian-based company/project
  • Possibility of achieving 10%-40% ownership
  • Possibility of contribution towards company/prospect development through board membership