Investment Criteria
Velocity makes 70% of its investments in seed and early-stage companies where our team adds incremental value beyond our investment. The other 30% is invested in mid-stage companies where our team can assist in growth or an acquisition. We look for opportunities with large addressable markets, defensible innovative technology, clear value propositions and capital efficient, executable plans. Our investment sectors are Clean Technology, Medical Devices, Software & Emerging Technologies, Networking & Equipment, and the Internet.
Here are our initial criteria for deals that are potentially suited for our fund:
- Large, Fast-Growing Target Markets: Market opportunities with an addressable market of more than $1 billion
- Industry-leading, Defensible Technology: Intellectual property that provides a sustainable competitive advantage, allowing companies the time to secure a leadership position and fend off competitors
- Clear, Convincing Value Proposition: Solutions that address pain points of customers today and can simply demonstrate a financial return on investment for customers
- Strong, Experienced Team: Founders with deep industry and technical expertise, ideally working with a cohesive team that has a track record of success
- Practical Execution Plan: A plan that incorporates a clear strategy and solid tactics, while being reasonable about the resources and time frame required for success
- Capital-Efficient Plan: Low overall capital requirements and a reasonable long-term capital formation strategy
- Smart Liquidity Strategy: Clear visibility to a liquidity event in a four to ten-year timeframe, including a clear value proposition to potential acquirers and/or the potential for a public offering
- Company-building Opportunity: The ability for our team to offer significant assistance in building company value
- Good Strategic Fit: A strategic fit with our investment map and current portfolio