Our investment criteria

“What’s your investment criteria?”

When we pitched the idea of an angel fund, we were frequently asked about our investment criteria. We invest in rounds and sectors that we believe have the potential for high growth and strong returns. We do not limit ourselves to a particular industry or round, as we believe in the importance of flexibility and adaptability in investment landscape. We are not bound by similar investment agreements as PE’s or VC’s might be. Unlike general fund, we invest from our own balance sheet and are not restricted by third-party investors.

This allows us to have fewer bureaucratic restrictions and opens up many opportunities. Of course, there are conditions, but we believe that such should not be based solely on economic indicators or third-party agreements. Instead, we consider business-related constraints. First, we determine if the business addresses a specific problem. If it does, we proceed  to further questions, such as whether we understand the business and if change is inevitable.

Our Investment Criteria

We prioritize businesses and individuals who are committed to making a difference rather than seeking personal recognition. We firmly believe that honest hard work is the key to success. Our extensive experience has shown that hard work and the pursuit of glory have a negative correlation, which we have observed time and time again. We invest in founders who stay out of spotlight and focus on changing the world because we believe that glory hunters work for the wrong reasons.

Our speciality lies in companies that grow organically. Trado Capital does not have the required expertise to guide a business expansion through multiple arbitrage and financial engineering. However, in exceptional cases where market consolidation is inevitable and growth can be achieved through M&A, we leave the door slightly open.

It is important to note that Trado Capital will sign out from some businesses, such as the gaming and device industries. We do not simply posess the right skills and knowledge to join the gaming industry. Similarly we have to skip the device industry due to large capital requirements and long R&D cycles.

Our current investments and specialization

Our investment scope is broad, as previous sections explained. However, nothing speaks better than actions, and therefore it is better to introduce what type of companies we previously invested in. If you want to skip the intro and find yourself, you can find the complete list of current investments and exits here.

In the past decade, we have made 17 investments, resulting in four successful exits. Our investments have been in six Markplaces, five SaaS, and three e-commerce, one fintech, and one HH service company. However, we believe that these categories are broadly defined and each company operates in its niche market.

Our portfolio includes companies from various sectors. We do not believe in a “one size fits all” strategy that can be successfully applied to every industry.. However, we firmly believe that our expertise in one industry can be harnessed to another industry. Founders want to grow their business while avoiding the biggest mistakes. We can guide you in internationalization, financing, growth, IPO, etc. The guidance we give is from personal experience.

Please find more about our investment philosophy and criteria here. If you are missing the story behind Trado and our introduction, please click here.

Author: Sami Aho