Investment Criteria
When we get involved in the early stages of company, we consider investments based on the following criteria:
Team Dynamic
We seek seasoned entrepreneurs who possess an in-depth understanding of the business, science, and market opportunities. And these determined minds have a passion for success and a vision for the future that sustains them through the challenges of building a great company. While we always value teams with deep experience, we also recognize that early-stage companies rarely have all the expertise they desire. By leveraging our considerable network of industry contacts and internal capabilities, we often work hand-in-hand with our portfolio companies to assemble a world-class leadership team.
Market Opportunity
We seek lucrative market opportunities. We invest in new companies that target opportunities of at least $5-20million in annual revenue. Our evaluation considers projected adoption rates, payors for the product or service, and reimbursement structures.
Technology Differentiation
We seek innovations that are truly unique. Successful companies innovate either as a first mover or fast follower in a category. We partner with both. We value breakthrough products and services that are clearly differentiated and superior to the existing competition. We evaluate the sustainability of this competitive advantage and the pathway to intellectual property protection.
Business Model
We seek companies who have a clear picture of the commercial and strategic value of their assets, how they will market and get paid for their product or service, and a well-defined financial plan for the amount of capital it will take to do so.
Investment Amount
We initially invest between $100,000 and $5,000,000 in companies that ideally offer additional equity investment opportunities over time. We are able to complete much larger transactions based on proper business plans.
Company Size
EBITDA range of $125,000 and $2,000,000.
Geography
In order to remain in close contact with management, we focus on businesses with main offices within 4 hours travel from Toronto.