Like other venture firms, we have a
formal set of guidelines that help to frame our investment
decisions. At the end of the day, however, it really comes
down to finding the most talented entrepreneurs and managers
who possess the personal qualities we look for. Passion. Integrity.
Being smart enough to know that sometimes you are not the
smartest person in the room. These are the qualities we look
for.
As for the more formal criteria, here
are some we follow closely:
Highly
competent entrepreneur and management team: We seek
entrepreneurs and management teams that combine experience
and talent with intelligence, integrity, passion and enthusiasm.
Unique
proprietary technology: Unique technology can create
a temporary barrier to entry that provides a critical
time advantage for emerging companies.
Compelling
value proposition: We look for products and services
that fulfill a critical need for customers such as dramatic
increases in productivity, substantial and sustained margin
improvement, or new features and functionality that vastly
improve methods of conducting business.
Large,
high-growth market: We targets large markets with
dynamic growth segments that provide opportunities for
small companies to accelerate entry and ramp revenues.
Demonstrated
customer base: The technology or existing company
must have readily identifiable customers (commercial or
government) who would be willing to purchase its product
or service at a projected price. This eliminates those
deals that have a solution in search of a problem. The
customers must share the entrepreneur's enthusiasm and
passion for the product or service.
Competitive
position defined and differentiated: The technology
or company must clearly articulate how its product or
service is substantially different from and superior to
that which is offered by competitors.
Capable
of generating a significant return within three to five
years: The technology or company must be able to development,
market, and sell its product or service to a point where
an exit is possible whether it is through an acquisition,
IPO, and financial engineering.
