Our investment strategy at Advantage was comprised of five essential elements:
- identifying early stage companies / investment opportunities through our rich network of contacts in the BC technology industry;
- conducting thorough due diligence and investing in the most promising of these companies via venture or public financing rounds;
- “rolling up our sleeves” to help management build the business through active mentoring, assisting in the recruitment of key board and management positions, and advising on financing, M&A and corporate partnering strategies;
- following on with further investments in those companies that are meeting their milestones and creating shareholder value (“ride the winners”) while halting investment quickly in any weak companies; and
- actively managing the investment exits to fully maximize the returns to our funds and their shareholders.
This investment strategy has proven to be a winning formula in terms of generating portfolio returns in our first fund – the Advantage Life Science Fund I which was one of the best performing retail venture funds in Canada (as measured by globefund.com) prior to its redemption in 2008/2009. We believe it is a sound strategy that will serve us well with our other investment funds as their portfolios mature.