Labrador Ventures invests in seed stage companies in the following areas: software, communications/networking, messaging, semi-conductors and information services.
While the management team does not need to be complete, the founders need to be smart, committed, outstanding, creative and resourceful individuals who are driven to build a major enterprise.
The size and growth rate of the market is crucial to a company’s success and impacts the ultimate size of the outcome. Often what propels Labrador's overall financial success from above average to extraordinary are the large wins of only a few investments. Accordingly, market size and growth characteristics are key in our investment decision-making.
The product or service offered must be unique and serve a genuine need, cost effectively, without requiring a significant behavioral change on the part of the purchaser or end user.
The economics of the business must be such that it is not capital intensive and provides for high sustainable gross margins. The combination of these two elements allows for a high, internally sustainable growth rate, thereby minimizing subsequent dilution. These characteristics are also highly valued in the public markets or by potential acquirers.
There must exist a reasonable scenario for the business to achieve revenues of $50 million - $100 million within 5 years.
Entrepreneurs need to display a fundamental and detailed understanding of the competitive matrix in which their business operates.
The business must ultimately be an attractive IPO or acquisition candidate.