One of the partners of the fund, Yaroslav Kologrivov, who previously worked at the Sikorsky Challenge project and business incubator Polyteco, said that the business model for the fund partners got tested in 2016. Officially, the fund was registered in 2017, and now has started accepting applications for making investment deals.
As of present, the fund consists of the investments channeled by private investors, but in the future it will manage to attract corporate investments too. The fund is targeting IT outsourcing companies only.
IT outsourcing niche is well established and pretty much liquid. There are lots of players among whom to choose, told the managing partner of the fund Yaroslav Kologrivov
Worth noting that outsourcing business is one of the most stable and predictable business that has good profitability and growth dynamics.
The fund is interested in companies whose staff consists of 100-300 people. The size of investments can range from USD 500 000 to USD 2.5mln as equity financing.
The fund also plans to provide debt financing to fuel operational working capital of IT companies. In this scenario, the loan can reach up to USD 500 000, and maturity of up to six months at the interest of 2% per month.
In the coming year, Insoft Capital Investment Fund intends to make 3-5 equity financing deals as a market entry venture and also arrange some 10 loans too.