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Investing
in early stage technology-related firms with unique
models that deliver high value-added, differentiated services
while generating longer-term, sustainable
earnings
Overview and Investment Philosophy
New Horizons Venture
Capital, one of the Mid-Atlantic region's premier venture capital firms,
invests in early stage start-up firms with unique models that deliver high
value-added, differentiated services while generating longer-term, sustainable
earnings. While the firm has no predetermined maximum investment size, New
Horizons typically invests between $1-4 million initially with the expectation
of more than tripling this amount in subsequent financing rounds. Rather than
broadly investing in many companies, the firm chooses to focus on a smaller
subset of high potential opportunities with specific industry segments and
serve as a value-added partner in growing these companies.
New
Horizons aims to serve as a long-term, value-added partner to its portfolio
companies. This long-term relationship is reinforced by extensive on-going
strategic, financial, and operational support. New Horizons, with its sister
leveraged buy-out firm Capitol
Partners, manages $200 million in assets.
Investment Criteria
New
Horizons is focusing on technology companies which are able to create a
strong, reinforcing fit among four fundamental success drivers:
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Unique opportunity which is scalable and
has long-term sustainability
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Favorable industry segment conditions, such as large, rapidly growing
markets, limited competition, formidable barriers to entry, and low adoption risk |
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Strong, uniquely qualified owner-managers to pursue such an opportunity |
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Reinforcing transaction structure to align and maximize incentives
among the owner-managers and investors |
When
these four elements support and reinforce one another, the potential for
success is significantly increased.
Company Focus
While
pursuing investments in companies led by strong and proven management teams
with a unique and defensible long-term value proposition, New Horizons
typically focuses on horizontal, 'foundations'-based investments whose
product-service offerings are deployable across many vertical segments, such
as:
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Software Applications and Services
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Enabling Technologies and Tools
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Communications Infrastructure
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Wireless Applications and Services
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Differentiation
New Horizons seeks to
structure 'win-win' deals that enable and promote the success of the
entrepreneurial company and the fund. In particular, New Horizons aims to
serve as a value-added partner to the companies in which it investments. The
firm remains actively involved with its portfolio companies while avoiding
unnecessary burden on the portfolio company. Specialized services New Horizons
can provide include:
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New Customer Contacts
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New Market Expansion Opportunities
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Senior Management Recruitment Assistance
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New Joint Venture Partnerships
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Service Provider Relationships
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Operational Support
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Strategic Decision Making
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Continued
Strong Financial Commitment
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