X2 Equity | Investment strategy

X2 I Equity focuses on

Investments in early to growth-stage technology companies and selected late-stage opportunities
Technology and product innovations for application in advanced industrial manufacturing

As a private holding company – that invests only funds generated through previous entrepreneurial activities – we have the flexibility to support our portfolio companies over the long-term

We endorse pragmatic, fast decision making and have the flexibility to implement tailor-made transaction structures according to individual stakeholder needs

We invest in ambitious teams solving problems, often engineering problems, helping industrial customers to improve their manufacturing processes.

INVESTMENT APPROACH

X2 I Equity pursues a flexible investment approach, making both minority and majority investments in technology companies during the following stages of their corporate development:

EARLY-STAGE AND
START-UP PHASE

SEED PHASE / “PROOF OF CONCEPT” (PROTOTYPING)

MARKET ENTRY PHASE (COMMERCIALIZATION OF TECHNOLOGIES)

GROWTH AND
EXPANSION

FUNDING OF ORGANIC GROWTH MEASURES

“BUILD AND SCALE” OF OPERATIONS INTERNATIONALIZATION

CONTINUOUS R&D AND NPI (“TIME TO MARKET” APPROACH)

MASS CUSTOMIZATION OF PRODUCTS FOR SPECIFIC CUSTOMERS, MARKETS OR INDUSTRIES

JOINT VENTURES AND PARTNERSHIPS

LAB PROJECTS THAT REQUIRE DEDICATED FUNDING

LATE-STAGE
OPPORTUNITIES

FUNDING OF “BUY-AND-BUILD” STRATEGIES (VERTICAL AND HORIZONTAL)

MANAGEMENT BUY-OUTS AND BUY-INS

CORPORATE CARVE-OUTS (ACQUISITION OF “NON-CORE ACTIVITIES” FROM LARGER CORPORATIONS OR DIVERSIFIED CONGLOMERATES)

FUNDING OF OPERATIONAL REALIGNMENTS AND RESTRUCTURINGS COMBINED WITH NEW PRODUCT INNOVATIONS AND GROWTH PLAN (SPECIAL SITUATIONS)

TECHNOLOGY BUY-OUTS

Target companies in the early-stage should have at least a working beta version of its technology in place (software or systems hardware proto) ready for testing in real customer environments

Our main target group for investments are private technology companies, with headquarters in Europe, North-America or Asia.

Beyond the capital that we invest, we are committed to create value by providing operational and strategic management support to our portfolio companies in the following areas:

Business development and mid-term strategic planning
Financing and capital
Operations and supply chain
Technical project and key account management
Customer and application driven R&D and New Product Introductions (NPI)
System product design
Prototyping & series production ramp of technology systems and components (advanced contract manufacturing)
International expansion of operations and establishment of new regional sales channels (i.e. in Asia)
Product pricing and after-sales strategies
Origination and execution of strategic partnerships along the value chain

By leveraging our industrial network and international partnerships (i.e in the US, China and Singapore), we can actively support further internationalization and profitable growth of our portfolio companies in key customer markets, with a goal to scale the business in the shortest possible timeframe.

We bring our own entrepreneurial experience in, using the above-mentioned levers to accelerate the path to commercial success. We aim to play an active role in our portfolio companies, typically assume a seat on the Board and work with task-based project teams to support management and staff on a project-by-project or daily basis (where the skills and responsibilities are typically complementary).