We review investments that fit within our investment criteria. We look for opportunities with the following essential characteristics:
Unique and Protectable Intellectual Property. We have a strong bias for opportunities to create and protect value through the creation of intellectual property. The exclusivity that results from avid and regular creation and protection of a firm’s uniqueness is core to the opportunities that interest us.
Market Size and Access. A market must be large enough to support a sustainable and attractive business, with growth prospects that are proportionate to the capital required to claim those markets. There must be significant fluidity in existing customers to provide for ready substitution and limited barriers to entry. Preference will be given to opportunities that have comparatively low cash requirements for market penetration.
Experienced Entrepreneurs. We favor experienced entrepreneurs in our investments. We have found that experienced entrepreneurs appreciate and value our approach to company building and look at Amplifier Ventures as much more than a source of capital.
Willing Entrepreneurs. We look for entrepreneurs that are open to our assistance, and approach company building as a collaborative, positive activity. We will bring to our investments a highly skilled network of experience and relationships, and will favor opportunities to provide that benefit.
High Return Opportunities. We will prefer business that have the potential for rapid growth and high gross margins which will reward the founders and our investors.
Demonstrable Changes in Value. Our investment model is predicated on the application of our capital and expertise resulting in a positive change in the valuation of our portfolio companies. Therefore, attractive investments must demonstrate a clear near-term path to commercialization, customer adoption, business growth and strategic interest for us to invest.
Liquidity. As a venture capital fund we need to recycle our invested capital back to our limited partners. Therefore, we will only finance businesses where there is a clear path to a sale or public offering within five years of our initial investment.