Key elements that we consider when reviewing investment proposals include
the following:
Market and Market Size
VentureTech's focus is primarily on fabless semiconductor companies;
semiconductor infrastructure companies, such as EDA, IP or semiconductor
equipment companies; and emerging technologies in market segments that may
require complex outsourced manufacturing services.
The applicant company's
target market must be identifiable, have high growth potential and have
defensible barriers to entry. VentureTech is looking for companies that have
the opportunity and ability to achieve market leadership.
Investment Stage
VentureTech primarily invests in companies requiring early to mid stage
funding. Typical investments are in the range of $1-3 million, and we
continue to participate in later stage funding rounds as our portfolio
companies grow and develop. We often work with other investors who act as
the lead, with VentureTech acting as a strategic, active investor, often
with a position on the company's board of directors.
Competitive Landscape and Advantage
The applicant company must show how their product fits and is positioned
against other competing products in their market segment and must fully
understand all elements of the competitive landscape. VentureTech is seeking
companies demonstrating a competitive advantage in their market or companies
operating within a niche market.
Intellectual Property
VentureTech is looking for applicant companies with intellectual property,
such as copyrights, patents or strategic core competencies that will help
the company defend and lead its target market.
Management Team
The applicant company's management team should have strong business
management skills, be strategic thinkers, and have the ability to lead the
company through several stages of growth. Technical expertise and experience
in their market segment is critical.
VentureTech will provide the management team with guidance/feedback and
often helps to identify and recruit highly qualified candidates when needed.
Financial Analysis
The applicant company must show a viable business model with progressive,
realistic growth that will lead the applicant company to profitability
within 2-4 years. VentureTech wants companies that can closely manage
operating expenses on a lean budget and achieve superior financial returns.