Labrador Ventures invests in seed stage companies in the following areas: software, communications/networking, messaging, semi-conductors and information services.
Founding Team
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.
Market
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.
Product/Service
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.
Business Model
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.
Competition
Entrepreneurs need to display a fundamental and detailed understanding of the competitive matrix in which their business operates.
Exit Strategy
The business must ultimately be an attractive IPO or acquisition candidate.
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