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Overview
We seek to partner with highly capable entrepreneurs whose talents
and experience will translate into successful ventures. Potential
portfolio companies should meet the following general investment
criteria:
- Experienced management team with a record of demonstrable success
- Product or service offering with a sustainable competitive
advantage
- An addressable market exceeding $500 million and growing rapidly
Stage of Investment
While the majority of our investments are in early rounds,
we invest in companies at various stages of development, from the
first round of institutional funding to later stage expansion opportunities.
We seek investments in which the risks associated with technology
development and market development have been adequately addressed.
Typically, these companies will have on-going revenues from an existing
product or service or have contracts or relationships that we believe
will produce revenues in the near future. We are patient investors
and recognize that successful companies often require a period of
five years or more to realize significant value.
Active Investment Partner
We typically serve as the lead investor in most transactions and
are often the first institutional investor in the companies we finance.
Board of Directors representation is important to us. This participation
enables us to help develop growth strategies with our companies
early in their development. We rarely become involved in the day-to-day
management of our portfolio companies. Rather, we serve as advisors,
assisting management with the development of business and financial
strategies, preparations for private and public financing events,
and the design of targeted merger and acquisition programs. The
results of this approach have been highly rewarding.
Syndicated Investments
We typically look to invest with other professional investors that
have similar resources and that are in a position to complement
the array of resources that we bring to our portfolio companies.
We prefer smaller sized syndicates with relatively few investors,
particularly in early stage companies. We have also made commitments
to some companies as the sole investor.
Preferred Investment Size
We seek to invest up to $15 million in any single portfolio company.
Typical first round investments range from $3 million to $10 million,
with follow-on financings often doubling the original capital commitment.
In select cases, we have made initial investments of as little as
$1 million with the expectation that we will significantly increase
our investment through later commitments.
Geographic Focus
We invest throughout the United States and Canada but have a preference
for companies located in the eastern United States.
Industry Focus
Our focus is on industries that have substantial scale, are growing
rapidly, and are undergoing significant changes, which are creating
attractive investment opportunities. They include:
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