Before We Invest

Many people are mystified by the process used by venture firms in selecting investments. While it is more art than science, with our firm the process does revolve around a few major issues:

• Can we provide more than just money to this Company?

• Are management's objectives and goals for the Company consistent with our expectations?

•  Is management committed to growing the business through additions to their team?

•  Does this Company leverage our collective experiences in high technology products and services?

Our evaluation of investment opportunities centers on these key questions. In answering these questions we rely on the usual sources of information such as business plans, projections, management resumes, references, and market studies.

All of these sources, however, are a means to the end of determining whether or not we are in a position to help a prospective investment become a substantial business enterprise.

What information do we need?

A business plan prepared by management is the key document we look to in determining our level of interest in a project. We think it is important for the plan to be developed by the managers who will be executing against the plan. After reading the plan, we will frequently seek to meet with management to find out more about the product and markets.

While we have had exceptions at both ends of the spectrum, our process typically takes 30 to 45 days from business plan to investment decision. This spectrum is a function of a number of factors, including the preparedness of the Company, our own schedules (existing portfolio companies have first call on our time!), our understanding of the product or service, and the interest level among other investors.