eurostorm - eurostorm.co.uk
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About the EUROSTORM
The EUROSTORM project expands the search for potential key market players geographically to European countries outside the UK. As the project of Carmel Solutions, the EUROSTORM shares the executive team and deep industry relationships with its private equity fund. The focus also has been broadened to include internet, mobile, broadband and ******** networks, the full potential of which remains unexplored in a number of the EU countries.
Quite similarly, we identify European hurricane businesses at the early stage and provide a punch for launching and acceleration of growth. We also provide support at later stages for companies that successfully execute their business plans. As an active board seat we define and refine the overall strategy and course of financings and provide assistance in specific business development and communication strategies basing on cultural features.
Our headquarters location in Scotland allows us to reach most European destinations within a couple of hours. We also have an office in Luxembourg.
In this way we are able to develop and promote an individual culture in each of our entrepreneur businesses. Coupled with this is a clear focus on the strengths of each associated company, often based on long tradition.
In a business world dominated by major conglomerates, the achievement of market leadership simply through scale is not our primary focus. Instead, our ambition is to occupy leading positions in precisely defined markets, where the expertise and passion of those who work in these businesses play a key role in delivering the best possible service and products to each target market.
Please refer to Carmel Solutions and Criteria sections for further information.
About the Company
Our documents
Carmel Solutions LTD is a private equity fund dedicated to working with entrepreneurs in the United Kingdom who have the drive and ability to build world-class technology companies that possess the potential to become key players in their market. We focus on information technology sector, in which we have direct experience and where our advisors, and our extensive networks can bring significant value. Having built up many companies, either independently or in collaboration with business entrepreneurs, we have extensive know-how at our disposal, regarding both operational and growth matters. The founder Mr. Diego Valdes (MD) has over 12 years of capital markets and financial management experience as an investment banker and corporate finance advisor. He was an active seed investor in both US and European start-ups including Moo.com, SpotRunner, Edgeio, Daylife, Stardoll and Last.fm. Malcolm Edwards (Venture Partner and IT Director) held management positions at Microsoft headquarters in Reading within the Web Platform Services Group, and was director of digital communication at WPP's Ogilvy & Mather *********. Sarah Springfield (Finance Director) as an investment banker with Morgan Stanley guided corporate clients to access financial markets and has successfully raised over £ 25 million through private placements of equity and public capital markets. These backgrounds brought an extraordinary team of seasoned business executives and wealthy investors to Carmel Solutions.
Diego Valdes
Diego Valdes, Managing Director
Malcolm Edwards
Malcolm Edwards, IT Director
We focus on series A and B rounds. We also participate in follow-ons at later stages for companies that successfully execute their business plans. We prefer to take lead positions and an active board seat, supporting the management team with whatever resources and skills are required to succeed.
In essence, we look for teams that are committed to solving a real problem with a novel approach. We do not seek to control a company through ownership. Our objective is to back founders and managers who wish to control their own destinies. While we generally sit on the boards of the entrepreneur companies, most of our contribution comes between board meetings. Typically we are involved in recruiting key talent, guiding specific business development missions, shaping communications strategies and defining and refining the strategy and course of financings.
Before sending us a plan, please make sure you read the Criteria section, which will give you a sense of what you can expect from us and whether we are the right partner for you.
Our process is really a simple one. First we ask ourselves whether the opportunity and the business plan are attractive and plausible at face value - in other words, assuming we take everything the entrepreneur says for granted. The vast majority of plans do not meet this test, but if they do, we focus on assessing the claims, opportunities and risks that are presented by the team. Generally it takes about six weeks of work to make a final investment decision. We will sign NDAs if an entrepreneur provides us with a basis for why evaluating an opportunity cannot be carried out without signing an NDA.
Criteria
Each topic includes a list of related questions that should be addressed in a business plan. The criteria listed below are keys to our evaluation of any opportunity because, in our experience, they have proven to be essential ingredients of successful companies. Our preference is for plans that are concise and ideally limited to two dozen presentation slides or less.
Simplicity
A great plan is one which can be distilled to a very simple proposition without losing its attractiveness. If a company's plan is not simple enough to be described in two sentences, it probably is too complex to be communicated effectively to customers, employees and shareholders.
* What business is the company in?
* What is the company's mission?
* Is the idea powerful enough to be the solid foundation of a big business or could it simply end up as a feature of someone else's product?
* Is the path to market plausible for a new entrant?
* How will the company be financed, not only initially but all the way to self-sufficiency?
* What are the key milestones that must be achieved on the company's path to success?
* How will the company be valued if it is successful?
* What is the likely exit strategy for investors?
Sarah Springfield
Sarah Springfield, Finance Director
Opportunity
ManagersWe don't believe in "creating" customers or changing their behavior. We like companies focused on markets that are already very large and profitable or that are expected to experience explosive growth. We seek to invest in the companies that will be market leaders in well-identified market segments with annual sales in excess of £10 million.
* How long will it take for the business to generate £10 million in annual sales?
* What market share will it have to obtain to achieve those levels of sales?
* What size organization will have to be built to achieve these sales levels?
* At what stage does the business become profitable?
* Who are the key competitors?
* How is the new company going to effectively compete with incumbents and new entrants?
Problem
Our officeWe always find ourselves asking the entrepreneurs the following questions. What is the serious problem your company is trying to solve? If a company is addressing a problem that is not significant enough, it may be betting on a solution looking for a problem. And if the problem is significant, why is it not being addressed by existing players?
* What evidence is there to suggest that there is a pressing need for the solution?
* What cost would customers attribute to this problem and what value to the proposed solution?
* How does this need being addressed currently and why is this not sufficient?
* Has this need been recognized by industry groups, standards bodies and incumbent vendors?
* How significant and costly is the change required to embrace the proposed solution?
Target Market
Our officeWe also want to know specifically who is feeling the pain caused by this problem and how many such people are out there. We like management teams that are able to talk about specific people in specific roles at specific companies that have decision-making power and would pay for the solution provided by the company.
* What value do customers place on a solution to the problem the company is addressing?
* What departments and officers have budgets specifically allocated to solving the problem?
* How will the customer's job change if the problem is solved?
* How long is the sales cycle?
* What are the customer's key criteria in making a purchase decision?
Advantage
How is your approach to solving a problem different from other ones out there? Are these differences important? Do they bring you a sustainable competitive advantage?
* If the need the company is addressing is so great, why is no one else offering a compelling solution?
* Are the product's advantages compelling enough to outweigh the customer's preference for continuing to deal with its existing, established vendors?
* What is the source of the company's differentiation?
* How can this source of differentiation be protected and enhanced over a long period of time?
Wisdom
We look for entrepreneurs who are aware of the challenges they are facing and who do not seek to conceal them. On the contrary, they know what they are good at and they are looking for partners who can make up for their shortcomings and help them to address and overcome these challenges. This type of self-awareness and realism usually comes from years of experience and lessons learned
* What are the key risks facing the business?
* Which of these risks could be fatal to the business?
* What partnerships could help the company mitigate and address these risks?
* What alternative paths are available to the company if a major risk materializes?
Economy
We want the funds we invest in companies to be spent on realizing the potential we see in them, not on luxury travel, perks or savings plans for employees. In our opinion, company founders and CEOs should set the example for their employees by drawing modest salaries and by saving money in all areas that are not critical to the company's mission.
* How will the company conserve cash and get all of its employees to think like owners of the business?
* How will the headcount grow over the next 18-24 months?
* Which companies are likely to be the best sources of talent to recruit?
* What compensation packages does the company intend to offer employees at various levels of the organization?
* Are the incentives of key executives, founders and investors aligned?
Energy
An essential ingredient to any start-up is drive. The founders must have sufficient energy and conviction to carry them through the ups and downs they will inevitably face. They must also be able to communicate this enthusiasm to their employees in such a way that it becomes contagious and part of the company's culture.
* What essential elements define the company's culture?
* Which objectives are shared by the entire organization?
* Is the company vision clearly communicated to and understood by all employees?
* Are all employees located in one place?
* Do all key employees live in the same place where the company
nvestment opportunities
At the heart of the EUROSTORM project there's a concept of taking over brilliant technology and service, pushing start-ups to the point where they can become key drivers of precisely defined markets previously inexistent or underexplored. Ultimately, researching then capturing and reserving these niches offers enormous business potential and consecutive market capitalization, return on investment and extreme profitability.
While most of the European internet, mobile, broadband and ******** network markets expand extensively and form brand new product niches in both consumer retail and B2B, there is a slower pick-up rate among investors in the respective countries, as compared to the UK and the US. The venture capital in most of the European countries is decentralized and does not support many current business opportunities.
The EUROSTORM is aimed to compensate for the current lack of relevant resources and to take advantage of the growing amount of the European market niches through adequate funding and application of the UK/US best practices. The increasing number of available European start-ups has also opened several investment opportunities for third-party investors. Below are figures on the average profitability as well as the participation schemes.
The Investment Programme
The EUROSTORM project will be attracting investments from third-party investors during 2007, 2008, 2009 and 2010. While the EUROSTORM enterprises reel is not subject to publicity and further investment decisions are undertaken internally, investments in the private equity fund yield interest rates common for all participants, regardless of the deposit amount.
Our investors get:
- Earn rate 5% per week
- Interest paid weekly
- Partnership bundle
- 24x7 online account access for deposits and withdrawals
The programme is effective for the US, UK, EU, CIS, Singapore, South Korean and Japan residents. An investment account can be opened by registering on the website and depositing USD 100 which is the current minimum threshold for the first 1,000 investors, subject to change to higher.
The account can be accessed online 24 hours a day, 7 days a week.
Deposits and withdrawals are made through either Bank Wire Transfers or Western Union Transfer. For more information please visit the FAQ section.
The guaranteed earn rate is 5% a week with capitalization of the interest.
The earn rate is NOT subject to change throughout the whole programme period.
The interest is paid weekly (each Monday) on the cumulative amount kept on an investment account during the previous calendar week. This yields a higher absolute interest being paid where no withdrawals have been made during the previous week. For further information please visit our HELP section.
Any investor is able to order his deposit and his capitalized interest for withdrawal at any time.
The Partnership bundle is available for active investors willing to promote the EUROSTORM Investment Programme on behalf of the company. The compensation is the 10% agent bonus on weekly earnings of all invited co-investors, coming weekly on top of current earnings. Promotion, drawing co-investors and yielding the agent bonus is effective only for investors with a positive balance.
The system is not subject to taxation as all deposits and withdrawals are made through private operators.
For more information, visit
https://eurostorm.co.uk
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