Typical companies that are considered for investment are often characterized by experienced management, scalability, capital efficiency, US based, in high growth sectors, and often feature uniqueness, intellectual property protection and disruptive market potential. Sectors that are not considered include oil and gas drilling and real estate investment, to name but a couple. A company must be organized as a corporation, and must raise committed capital from other sophisticated investors, in order to be eligible for consideration by the Fund. Typically, the Fund invests in a company’s first round of external funding, although this is not an absolute criterion. It is rare that our funds make a first investment in a company at a valuation higher than $8M or so.
The Fund seeks opportunities which will achieve an internal rate of return for the Fund of 25% or more, and will provide full liquidity for the Fund within eight years.