Jure Mikuz, RSG Capital: “We first look at the DNA of the company”

Jure Mikuž is managing director and partner at RSG Capital, a venture capital management company from Slovenia, whose portfolio includes investments such as Celtra ( which enables scalable rich media mobile advertising across native apps and the mobile web), Efos (provides complex information systems, mainly in the field of environment, traceability and food safety), ShoutEm (publishing platform allowing  users to create native or web based apps), Connet (develops security solutions for the internet), and Mount Vacation (online booking system with mountain destinations). The company exited from Bia Separations in 2010. Mikuž shares with BR some of his experience.

What are the things that you look for in a business that requires financing?

First we look at the DNA of the company. That includes the structure of the team, business culture, private interests of the founders, product strategy, etc. Then we look at the potential market size and the ability of the team to execute on this market. And of course we look at the product itself as well.

What is the maximum and minimum threshold that you invested in projects?

We do investments of approximately EUR 1 million for a minority share in the companies. Usually we invest in multiple tranches and we do a combination of equity and convertible debt.

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What financing paths would you recommend to a fresh Romanian technology entrepreneur seeking funds for his/her business?

From what I’ve seen during How to Web it seems like the optimal way to bootstrap in the beginning. Then try to find a local business angel with a broad international network in the industrial community and with an access to the regional VC players. It’s appropriate to pitch regional VC guys when the product is tested on the market.

What about the financing paths available for a Romanian company that has been around for a number of years but has now reached a point in which it needs funds to further develop/reinvent itself?

The companies that have been around for a number of years are usually not very attractive for VC guys since they look like lifestyle companies as opposed to high growth companies which we’re looking for. If the company has a track record, some history, and it shows a significant growth potential, then it surely can be identified as a target investment for VC investors.

Have you financed projects outside Slovenia? Can you tell me some things about these?

ShoutEm is currently the only foreign investment we have in our portfolio. Celtra was invested in Slovenia in 2009 and we migrated the company in the USA after raising the next round from Grandbanks and Fairhaven.

When do you usually an exit from a business?

We strive to exit after 3-6 years after our initial investment. This varies a lot and depends on the market timing, business progress of our portfolio companies, etc.

Jure Mikuž established the first Slovenian based VC Fund, raising private commitments mostly from domestic industrial investors. He serves on several boards of the investee companies, including Celtra, TAB Systems and Novitim. Jure is actively promoting entrepreneurship and regularly holds lectures on finance and fundraising procedures for the start-up communities in Slovenia and across the Balkans. He was present this year at How to Web, on November 7 and 8 in Bucharest.

Otilia Haraga