Regular Venture Capital Program Features
 
  1. Eligible Enterprises
  • Industrial and Manufacturing projects
  • Agri-business projects
  • Social Services projects
  • Tourism projects
  • Environmental projects
 
  1. Amount of Investment
The amount financing under the VC Program shall not exceed 40% of the enterprise authorized capital stock and voting rights. The amount shall range from a minimum of P500,000.00 to a maximum of P5,000,000.00.
 
  1. Nature of Investment
The investment shall be in the form of common or preferred shares with voting rights, depending on the deal structure most appropriate to the enterprise.
 
  1. Dividend Rate and Return on Investment
The dividend rate on preferred shares of stock shall be based on SB Corporation’s wholesale lending rate plus a spread for administrative and risk premium.
 
The Return of Investment (ROI) over the life of the investment is targeted at reasonable return based on the yields of investments in similar businesses and/or alternative investments (such as fixed deposits, T-Bills and Bonds).
 
The Internal Rate of Return (IRR) of the investment over its life is targeted at 20% per annum.
 
  1. General Purpose of Investment
  • Business Incubation/Start Up Stage
  • First Stage or Commercialization of new product and/or services
  • Expansion Stage
  • Bridge Stage
 
  1. Term of the Investment
The investment shall be for a period of 5 to 10 years. In exceptional cases, the term of the equity investment may be extended for another two (2) years, subject to the approval of SBCorp Board of Directors, as endorsed by the Loans and Venture Capital Review Committee.
 
 
 
  1. Valuation of Technology/Intellectual Property
The valuation of technology and Intellectual Property shall be conducted by a competent valuation analyst or IP professionals which shall be contracted by the accredited partners of SBCorp. in the implementation of the program.
 
The due diligence documents shall include the third party certification on the valuation method used in valuing the technology and IPs.
 
  1. Exit Mechanism
Redemption
Sale to Third Party
Initial Public Offering (IPO)