INVESTMENT CRITERIA

OVERVIEW

When analyzing potential investments, VectorPoint looks for eight primary characteristics:

  • Highly qualified management team
  • Proprietary technology or unique product or concept
  • Sustainable competitive advantage
  • Demonstrated market acceptance
  • Poised to achieve significant growth quickly
  • Likelihood of a good return on invested capital
  • Prospects for investment liquidity within a determinable period of time
  • Potential for significant community impact

GEOGRAPHIC FOCUS

VectorPoint focuses on portfolio company opportunities headquartered in the greater Northwest US region.  We will also give consideration to opportunities from California and other western states that are referrals from our trusted network of entrepreneurs, company executives, investors, bankers, accountants, lawyers, and other VectorPoint affiliates and friends.

 

STAGE, INVESTMENT SIZE, AND RANGE OF INDUSTRY SECTORS

We invest in companies that are in phases ranging from the initial stages of revenue generation to more mature later stage situations where a company is seeking growth capital to finance a transformational event or growth initiative.  Most of our energies are focused on small middle market growth stage companies while we also reserve room for opportunities in a limited number of emerging stage growth companies where we know the management team well or where market dislocations and disruptive innovations create outsized risk-adjusted return potential.  Our typical initial target portfolio company investment ranges from $1 million to $3 million.  We may also make larger investments, which are usually staged over time after successive milestones are reached.

We will most often serve as lead or co-lead investor.  We strongly believe in co-investing with other investment managers in order to bring the deepest strategic pool of resources and contacts to our companies.  We seek opportunities across a range of sectors, which include, but are not limited to:

Software Financial Services Health, Food, and Wellness
Business and Consumer Products and Services Medical Devices and Diagnostics Manufacturing and Industry

USES OF CAPITAL

Company boards and management teams can use our equity or mezzanine debt financing to achieve a variety of objectives such as allowing a business to expand more rapidly or take advantage of opportunities that require capital to execute.  Your company can use growth capital to finance enhanced product development, operations upgrades, new sales or marketing initiatives, geographic expansion, acquisitions and other growth strategies.

Typically, for either equity or mezzanine debt financing, VectorPoint will receive a minority ownership position in your company.  That way, your current ownership group and management team can retain strategic and operational control of the business, while tapping new growth capital resources to take your company to the next level.