The main branches of the company’s activity are venture (including mezzanine) and trade financing as well as co-financing of investment projects.
- Venture financing is high-risk investment of private capital into equity capital of newly established perspective high-technology small businesses (or well-established venture companies) which are oriented at development and production of high technology products, with the purpose of their development and extension.
- Mezzanine financing is the method of project financing (not at the initial stage) when the investor provides capital as debt financing and at the same time gets the option for future acquisition of the borrower’s shares for a definite price, possibly in the case of occurrence of certain conditions.
- Trade financing is the tool of raising credit capital when the pledge to be used is expected money receipts and non-monetary liquid assets of the debtor’s company, goods for sale, export contracts, etc.
The main difference between the company and most finance and investment companies is a wealth of experience which the team of Proks Capital gained in management and development of real (non-financial) business. Consultative support and risk-management in the course of financed projects greatly increase the probability of success.
Proks Capital Ltd. is the member of Latvian private equity and venture capital association.
In its work the company is oriented at solving the following tasks:
- to encourage extension of Latvia’s participation in internationalization of innovation-driven economy
- to take active part in development of venture financing in Latvia (to encourage creation of demand and supply in this field)
- to encourage development of new technologies which facilitate progress not only in Latvia but also all over the world
- to attract to Latvia high-technology and export-oriented projects with high value added