Focus

We focus on software-driven businesses that have strong growth potential, high levels of recurring revenue, and a specific industry focus or domain expertise. We get involved before a business reaches $5 million in revenue and after its technology, service and business model have been proven viable and attractive. Typical investment levels range from $250k up to $1.5 million.

Sectors

Software-as-a-Service

The cloud has brought with it the capability to create, deploy, scale and support software applications in ways that dramatically lower cost and allow easy to use solutions to be accessed by users over a simple browser connection. The wave of new SaaS applications continues to grow and penetrate virtually every industry and function. This trend is likely to continue for at least the next decade as almost every process and interaction between customers and vendors becomes automated.

  • Simple to use and rollout
  • Easy setup and configuration
  • Low cost per user
  • Avoids capital costs of traditional model

Mobile Sofware

With more mobile devices (including smartphones and tablets) now being purchased each year than desktops, the emergence and growth of new businesses that take advantage of these technologies are exploding across every industry and functional domain. Mobile has emerged not only as a new channel for reaching customers, but as a means of transforming how many value chains source, manufacture, distribute and collaborate with partners.   The changes have just begun and we want to be part of pushing this transformation forward.

  • Mobile becomes the all-in-one device
  • Targeted, local customer offers
  • Always connected in your hand

Artificial Intelligence

From self driving cars, to world champion GO players, unique and creative applications of “AI” are on the rise. At its core, Artificial intelligence is exactly what it sounds like–an attempt to endow computers and machines with human-like “intelligence”. Intelligent software and infrastructure are capable of both processing and understanding massive amounts of data, but perhaps the most humanly intelligent aspect of this technology is its ability to learn from its mistakes. Artificial Intelligence opens up a world of new possibilities for predictive analytics.

  • Machine Learning
  • Natural Language Processing
  • Predictive Analytics

Big Data

With the explosion of new digital channels (social, mobile, email, search) and the associated points of interaction between companies and their prospects and customers, businesses are drowning in data that is 10 or even 100 times greater than what they had previously. Big data is simply the effort to capture and extract insights that allow businesses to market smarter and more efficiently from all this new data.

  • Refined segmentation and targeting
  • Early warning signals about defections
  • Customer intelligence

Approach

Experience over capital

Although we always invest capital in a portfolio company, it is our operating experience, relationships and capabilities that make us most attractive. We take our time finding not only businesses we like, but people we like and can work with, week-in and week-out. If a company only seeks capital, we are not a good fit, but if they want a partner that brings direct experience running and growing businesses similar to theirs, then our approach is compelling.

  • We’ve done it before
  • Bring new customers and partners
  • Attract quality talent
  • What works in the real world

Highly defined markets

Unlike typical venture firms that look for the billion dollar markets, we seek businesses focused on specific industries or specialized functions where the products can be more defendable. We don’t expect to find the next Google or Facebook, but you don’t need that to make great returns and build exciting businesses. If you think you’re the next Zuckerberg, we’re not the right partner.

  • Remake an industry, not the world
  • Find defendable positions
  • Smarts over size

Partnership over control

We prefer to find opportunities where we can be partners with management/entrepreneurs, not small minority investors that are along for the ride. Whether we have ownership control or not, we expect to work together as a team to find and agree on the best direction. And since we generally participate in the operation of the business on a weekly and sometimes daily basis, this kind of relationship makes sense. Conflict with traditional investors often germinates from the gap in understanding between the Board and the operators regarding what the business needs. With our approach, we don’t run into this problem.

  • Best answer should prevail
  • Power comes from ideas, not equity
  • In this together

Flexible deal structure

Since almost all of the capital we deploy is our own, our objectives align more directly with management than typical VC firms that are driven by annual management fees, raising the next fund, and satisfying the investment constraints of their Limited Partners. We don’t have to slavishly follow a cookie cutter model that dictates how much we can invest in any one business, how quickly we need to exit, or what types of financing and ownership structures we must use. We are free to treat each business uniquely and structure the deal that works best for the company and its management.

  • Invest up & down the balance sheet
  • No artificial time limit for exit
  • Working our own equity, like you