invest in tech companies with income instrument
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"Until today, investing in technology companies was mainly associated with investors having to wait a strikingly long time before realizing a return, in addition to taking on high risk that there may not be a return....."TRANSCRIPT
Nov 2014
1
Fruition TechFund Portfolio Opportunities Thank you for inquiring about Fruition TechFund and our investment opportunities. I’m delighted to share with you a unique investment structure that we believe is a “game changer” in the technology investment industry, the opportunity to invest in technology companies while potentially receiving a benefit from an income-‐generating component and the long-‐term benefits associated with an exit strategy. Until today, investing in technology companies was mainly associated with investors having to wait a strikingly long time before realizing a return, in addition to taking on high risk that there may not be a return. Through a unique investment structure, Fruition TechFund enables investors to make separate investments in technology companies, which would be partly managed by Fruition TechFund’s experienced management team, in addition to receiving both a current stream of cash flow (Quarterly Return), coupled with the long-‐term strategy of receiving exit benefits. Long and hard negotiations with the companies TechFund intends to invest in resulted in the unique investment structure you may benefit from, as an investor: the possibility of receiving a cash return over the next four years with an upside from an exit (Buyout) event at the end of the anticipation investment period. The two new technology companies are in the video platform and cyber compliance industries. Both of the technology companies are up and running: (1) each technology company is in their respective revenue stages and each technology company; (2) owns a unique and innovative technology (3) has a customer pipeline; and (4) has a professional team in place to lead them to the next stage. Track Record: Fruition TechFund’s board members have experience in working with other companies, which generally returned to investors in their respective businesses 4X to 7X ROI within 2-‐4 years of the investment.
Our two investment funds are currently open to new investors
and for increased allocations from current investors.
Nov 2014
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Fruition TechFund is proud to present: Cyber Security Technology Company; Israeli Company
Company Industry: Cyber Security/Compliance Fund Structure: Sub Series LLC
Tech Co. Stage: In Revenue; up and running Fund Location Chicago, U.S. Min. Investment: $40,000 Max. Investment $4,480,000 (Total Round) Prospect Yearly Cash Return (Yield):
2015: 4.4% | 2016: 22.9% 2017: 35.4% | 2018: 53.9%
Anticipated Return (Exit Event)
47% (IRR) * Investment period: four years
Units Include: Equity, Convertible Debt and Warrants
Convert/Exercise Terms:
Price per today and any time during the investment period.
Exit Strategy Exit (buyout) event after four years investment.
Security: First position lien on assets, Active board members.
Why to invest? Ø Founder and team leaders -‐ Expertise in cyber security and user-‐based profiling from large organizations including the Israeli Government and Israeli Defense Forces (IDF) elite tech units.
Ø Profitable and stable since 2011. Ø Maintains 80% conversion rate from prospect to customer. Ø 97% of long-‐term solution customers have renewed their maintenance contracts
over the past three years. Ø Recommended by worldwide top audit firms. Ø Established long-‐term relationship with Fortune 500 customers. Ø Addressable market size of $8B. Ø The latest equivalent buyouts (exit) transaction in the company venture domain
was in valuations of ~$1B.
Nov 2014
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Fruition TechFund is proud to present: Video Platform; U.S. Company
Company Industry: Video Platform Fund Structure: Sub Series LLC
Tech Co. Stage: In Revenue; up and running Fund Location Chicago, U.S. Min. Investment: $30,000 Max. Investment $2,250,000 (Total Round) Prospect Yearly Cash Return (Yield):
2015: 7.0% | 2016: 21.6% 2017: 60.8% | 2018: 46.4%
Anticipated Return (Exit Event)
76.6% (IRR) * Investment period: 3.5 years
Units Include: Equity, Convertible Debt and Warrants
Convert/Exercise Terms:
Price per today and any time during the investment period.
Exit Strategy Buyout event after 3.5 years investment.
Security: First position lien on assets, Active board members.
Why to invest? Ø Professional team with a proven industry track record. Ø Proven technology: Chicago Blackhawks, Eventbrite and other top brands chose
the company platform as their preferred video product solution. Ø Achieved profitable point in the first market segment. Ø A proven business model with timely cash returns to the investors with
up to 117% yield. Ø Cutting edge technology: Stabilized code with a well-‐designed
technology platform. Ø The Latest equivalent buyout (Exit) transaction in the company’s
venture market was in more than six times on the company’s EBIDTA.
Nov 2014
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Fruition TechFund Process: Fruition TechFund’s board member consists of dozen members that have expertise in M&A, private equity, and venture capital. They have benefited from lucrative exit strategies for many technology companies. Fruition TechFund brings together experience from its board and executive members who intend to screen and filter the technology companies so only a select group would be chosen for investment. Over 40 companies have been screen in the last 12 months. During the last six months Fruition TechFund engaged in negotiations and the due diligence, which you can find in our data room, in addition to the investment private placement documents. To request an access to Fruition TechFund Data Room, please use this link: http://www.fruitiontechfund.com/register.html Sincerely, Kfir Hazaz, Executive Manager & Chairman http://www.FruitionTechFund.com mailto:[email protected] Office: 312-‐265-‐6644 ______________________________________________________________________ Fruition TechFund Prospectus: https://fruitiontechfund.sharefile.com/d/s95d99de16054849b With more than a 15 years experience in the technology industry and through a unique investment structure, Fruition TechFund enables investors and money managers to make separate investments in technology companies and receive both a current stream of cash flow and long-run upside, while benefits from an experience fund's management team.
Nov 2014
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The letter is for general informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or any financial instrument or provide any investment advice in any jurisdiction. We do not represent that the investments described at the documents are suitable for any specific investor. The reader should make their own inquiries and consult an independent tax, legal, investment and/or other advisor of their own choice before making any decision on the products and services described at the event.
THIS IS NOT AN OFFERING TO BUY OR SELL SECURITIES AND IS SOLELY AN INFORMATIONAL DOCUMENT. ALL PROJECTIONS AND FORECASTS ARE BASED ON CERTAIN ASSUMPTIONS AND EXPECTATIONS WHICH MAY OR MAY NOT OCCUR OR BE REALIZED. NO ASSURANCES CAN BE MADE THAT SUCH PROJECTIONS WILL OCCUR OR BE REALIZED, AND ACTUAL RESULTS MY DIFFER MATERIALLY. THE INFORMATION, ANALYSIS, FORECASTS OR PROJECTIONS PROVIDED HEREIN WERE EITHER PROVIDED BY THE RESPECTIVE COMPANIES OR PREPARED BY FRUITION TECHFUND BASED ON INFORMATION PROVIDED BY THE RESPECTIVE COMPANIES. POTENTIAL INVESTORS MAY NOT RELY ON THE INFORMATION PROVIDED HEREIN BUT MUST ONLY CONSIDER THIS INFORMATIONAL DOCUMENT IN CONJUNCTION WITH ALL OF THE OFFERING MATERIALS, AND UNDERTAKE THEIR OWN DUE DILIGENCE INVESTIGATION REGARDING THE RESPECTIVE COMPANIES AND FRUITION TECHFUND IN ORDER TO FULLY UNDERSTAND ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING. INVESTMENT IN FRUITION TECHFUND ENTAILS A HIGH DEGREE OF RISK AND POTENTIAL INVESTORS MAY LOSE THE ENTIRE AMOUNT OF THEIR INVESTMENT. INVESTMENT IN FRUITION TECHFUND WILL ONLY BE OFFERED TO ACCREDITED INVESTORS AS DEFINED IN RULE 501(A) OF REGULATION D UNDER THE SECURITIES ACT.