What we expect
We look for the following when evaluating potential investments:
Quality Management Teams
We seek entrepreneurs with:
Large Potential Markets
A company's vision, products, and services should solve large and important problems for readily identifiable groups of customers.
The companies we back should be seeking to establish and maintain a leadership position in their respective markets.
Sustainable Business Models
We are looking for companies with differentiated models in defensible markets.
This means we will look to invest in companies with a low risk of commoditization and the likelihood of large profit margins.
Source of Competitive Advantage
Companies that we invest in must be able to establish a measurable and sustainable competitive advantage. This advantage can be gained through:
The capital requirements of the business must be such that we will be able to establish and maintain a meaningful percentage ownership in the company. This is necessary to justify our commitment to bring the collective resources of the partnership to every investment.
From a capital requirements perspective, it is also important that the prospective business not require an inordinate amount of up-front capital to determine the long-term viability of the product or business model.
Path to Liquidity
We pride ourselves on being patient, long-term investors; however, we realize our limited partners have an expectation of liquidity.
As such, we expect all of our investments to provide a reasonable roadmap to liquidity within a five to seven year timeframe.
Opportunity to Add Value
We look to partner with entrepreneurs who recognize our ability to add value.
We know how to help turn a great vision into a successful business. We want to work with entrepreneurs who are eager to leverage this knowledge.
We look for the following when evaluating potential investments:
Quality Management Teams
We seek entrepreneurs with:
- The vision and imagination to challenge and fundamentally change the dynamics of new and existing markets
- The ambition to build world-class companies
- The character and determination to realize their ambitions
Large Potential Markets
A company's vision, products, and services should solve large and important problems for readily identifiable groups of customers.
The companies we back should be seeking to establish and maintain a leadership position in their respective markets.
Sustainable Business Models
We are looking for companies with differentiated models in defensible markets.
This means we will look to invest in companies with a low risk of commoditization and the likelihood of large profit margins.
Source of Competitive Advantage
Companies that we invest in must be able to establish a measurable and sustainable competitive advantage. This advantage can be gained through:
- The development of intellectual property
- Significant cost advantages
- Key channel relationships
- Preferential contracts
- Superior product development or customer service or, in some cases,
- By being first-to-market with a new product or service with the potential for "customer lock-in"
The capital requirements of the business must be such that we will be able to establish and maintain a meaningful percentage ownership in the company. This is necessary to justify our commitment to bring the collective resources of the partnership to every investment.
From a capital requirements perspective, it is also important that the prospective business not require an inordinate amount of up-front capital to determine the long-term viability of the product or business model.
Path to Liquidity
We pride ourselves on being patient, long-term investors; however, we realize our limited partners have an expectation of liquidity.
As such, we expect all of our investments to provide a reasonable roadmap to liquidity within a five to seven year timeframe.
Opportunity to Add Value
We look to partner with entrepreneurs who recognize our ability to add value.
We know how to help turn a great vision into a successful business. We want to work with entrepreneurs who are eager to leverage this knowledge.