There are certain types of opportunities that we feel more comfortable in financially and strategically supporting. They have, in general, the following characteristics:
Technology
- A unique technology, process, or program
- Intellectual Property (e.g. patents) or a clearly established product innovation process
- A technology that solves an unmet or poorly met need
Company
- Market or operational competitive barriers that favor the company
- Located within a 350 miles radius of Chicago
- Scalable operations
Managemen Team: A management team capable of moving the business through the early stage growth process. The management team will have the following attributes:
- Competence
- Perseverance
- Track record
- Decency
- Integrity
- Coachable
- Personal financial commitment (“Skin in the game”)
- Sense of Urgency
- Burning desire to succeed
Market
- A large and targetable market opportunity
- Ability to have niche dominance in the market place
- A growth strategy that does not require a national sales structure to succeed
Investment Request
- Investments generally in the range of $250,000 to $1,000,000
- A minority ownership position in the company. We are not a bank! We don’t loan money
- A growth strategy that allows for incremental funding based on performance
- Return of the invested capital in 3–7 years with an expected internal rate of return of 45-65+%
- Realistic expectations of significant near term and long-term growth
- The potential to achieve early milestones leading to demonstrably increased valuation
- A stage of development that allows for our participation as a director/manager/observer on the Corporate Board
- We do not participate as a small player in a larger venture round
