BOREAN can invest up to DKK 6 million in promising business ideas.


BOREAN operates at the earliest stage of the investment chain, where venture capitalists and other private investors are reluctant to engage.


The investment consists of loans and equity. Based on the amount of equity, we obtain minimum 30 percent ownership.


The average investment model:
When our board of directors has approved an investment, we usually found a private limited company. The entrepreneur injects up to 70 percent of the capital in equity or non-cash contributions. BOREAN injects minimum 30 percent.
BOREAN can at this stage invest a maximum of 3,5 million DKK, primarily in the form of loans. This pre-seed funding must be applied for development- and operation costs. The loan bears interest at 8% per year. The interest rate reflects the investment risk. In this context it is worth noting, however, that it is the company and not the entrepreneur who are personally liable for the loan.


Once the business idea succeed, and there is formed a successful company, the loan will be repaid in line with earnings and profits. The specific terms of the repayment will be determined on the basis of an individual assessment.


If the business idea doesn’t turn out successful, the entrepreneur can get debt to BOREAN written down to zero, by handing over the rights to the business idea.

 

Second round financing
BOREAN can at this stage invest a maximum of 2.5 million DKK, in the form loans or equity, for further development activities. BOREAN's investment of up to 2.5 million may not exceed 40 percent of total secondary investment in the company, and it is therefore necessary to raise a supplementary private investment equalling 60 percent or more percent of the total secondary investment.


BOREAN has a large network consisting of banks, private investors and venture capitalists, and together we can engage in a dialogue with these funding sources.