We like to get involved early. We are usually the first institutional investor in a company, and our typical initial investment is from $500,000 to $4,000,000. We prefer to take a lead or co-lead position where we can have influence on the Board of Directors as well as outside this formal channel through direct ties to the leadership team. Our strategy depends on finding and backing distinctive entrepreneurs – we often say that we back the jockey more than the horse. That said, we look for capital efficient business models and have a preference for slightly “under the radar” opportunities in sectors unlikely to be plagued by overfunding. Because of our hands-on investing model, we strongly favor investment opportunities in California where we can have frequent face-to-face interactions.
Most of our investments can be classified broadly as information technology investments. We have a strong track record doing “hard technology” commercialization projects from our local universities and will continue to look to these institutions for innovative business ideas. We have been involved with numerous internet and new media companies and will continue to look for stand-out opportunities in these areas. Looking forward, we anticipate building on our proven areas of expertise while staying open to new emerging fields.