Conditional on strategic value creation for Bekaert, investment proposals are subject to standard financial analysis similar to venture capital pursuing financial return.
In our investment strategy we seek win-win partnership opportunities with start-up companies by creating value to Bekaert and putting our investment capital, experience, and broad asset base at work in assisting those companies to become successful.
Next to direct investments in startup companies, Bekaert Venturing also invests in a number of specialized VC funds with a specific materials and cleantech focus.
Bekaert Venturing is looking to invest in innovative companies that are able to provide strategic growth options in the existing business segments of Bekaert as well as long-term financial returns.
Within Bekaert Venturing, direct investments are not considered as a goal per se. Depending on the strategic fit, stage and targets of both the startup company as Bekaert, we will also consider the possibilities in setting up a partnership structured through e.g. a joint development or commercial agreement.
We have specific interest in early- and growth-stage companies that are working on innovative improvements to or new applications for our products in the following industries:
We also consider collaboration models or investments that help improving Bekaert’s production processes or reducing its environmental footprint further. These may include the use of new materials or technologies to:
- Increase process performance while reducing energy consumption and the overall environmental impact.
- Replace certain chemicals and lubricants by more eco-friendly solutions with similar or improved properties.
- Reduce the amount of waste streams.
Bekaert Venturing invests globally in early-stage technology companies with world-class innovations that provide strategic options to advance or complement our core competences.
The startup companies have entrepreneurial teams and a strong business model featuring financially attractive returns. They are keen to collaborate with Bekaert in a win-win partnership.
We usually seek investments in the early-stage financing comprising of minority preferred equity participation with the opportunity to actively support through board (observer) representation.
Typically, we take a long-term approach and invest in stages with follow-on investments based on the achievement of milestones. The investments can be direct as a lead investor, or co-invest alongside industry leading venture capital firms or other corporate-strategic investors.
Bekaert Venturing uses a stage-gate approach to evaluate a potential investment in a start-up company.
The investment process consists of:
- Initial screening by the investment manager to assess the fit with our investment strategy and alignment with the business platforms.
- Invite the start-up to present the business plan which should include: (i) management team, (ii) product and value proposition, (iii) business model, (iv) financial framework, (v) IP protection.
- The positive evaluation and identification of an internal sponsor will trigger the due diligence process and the definition of the term sheet conditions.
- Investment decision by the Bekaert Venturing advisory board and closing.
- Active involvement with the start-up company to maximize the value creation.