Our Engagement Criteria

Our time is our scarcest resource

Because we put so much effort into every company with which we're involved, we need to be highly selective.

While there's no "cookie cutter" model for the perfect fit, we have a couple of filters that we use to be sure we're being efficient. In addition to our geographic focus on the Bay Area, here's what we look for in a potential deal:

Solid IP

There must be strong intellectual property at the core of your company. Ideally, it will be defensible both by virtue of issued and/or pending patents as well as by the sheer complexity of the problem you've solved, which translates into a competitive head-start. (For the record, none of us believes that there is any enduring advantage that emanates from technology, but we all know from experience that it is critical in establishing a beachhead from which sales and marketing can grow the business.)

Big Market(s)

The problem that your technology addresses must result in one or more large potential markets (defined as total purchasing in excess of $100 million per year).

Often, we find that the market a company initially pursued either never emerged, went away, or was too small. Fortunately, one of our core strengths that comes from the sheer breadth of our experience is our ability to see alternative applications of technology that result in major market opportunities. So if you don't feel like you have this one completely figured out, don't worry; we can help.

Leveraged Sales Model

Startup Rule #1: Time is not your friend.

The world has changed to the point where no startup can be successful if it must rely upon building a direct sales channel. The costs are too high, and the sales cycles are too long. The same is true of companies that target consumers: it's simply too expensive in terms of both time and money to build a national brand.

So we look for opportunities where the company can accelerate its roll-out through leveraging channels and partners. Again, we have deep experience and excellent contacts in this area, so don't feel like this is something you need to have in place before talking with us.

Low Burn Rate

This one's critical. If your business plan requires a lot of people or other capital-eating expenditures, we're probably not the right resource for you.

Note that this doesn't mean you don't need money. Every startup needs money, and we're true veterans when it comes to funding young companies. We just believe, again based on our accumulated experience, that keeping overhead to an absolute minimum is a key success factor.

If you meet these criteria...

...then we should be talking, and the sooner the better.