Portfolio of Investments
We manage volatility and liquidity through a portfolio approach combined with relatively short hold periods
Assets designed for enterprise acquirers
Founder Equity invests in early stage technology entrepreneurs building high potential businesses. We focus on startups that solve significant challenges for large enterprises, improve performance of their key divisions, or both.
Managing volatility through a portfolio of investments
Early stage investing requires discipline, focus, and careful management of the volatility inherent in the asset class. FEQ avoids investments that require substantial capital expenditures (such as clean tech and biotech), or that require massive scale before appreciable value creation. Companies that lack clarity in a potential value creation model are also of less interest. Instead, we invest in pools of assets designed to spread risk across different market sectors, technologies, and capital efficient business models.
Complementary businesses and markets
Founder Equity avoids concentration risk by investing in a relatively broad array of business models and markets. However, where possible in the context of avoiding concentration risks, we do seek to invest in complementary businesses and similar (enough) markets to maximize go-to-market efficiencies and strengthen channel relationships.
Speed to market and model
In addition to looking for high growth potential and modest working capital requirements, Founder Equity focuses on investments with potential for positive contribution margins and a path to profitability relatively early in its lifecycle, and aligned with our strategy of relatively short hold periods. This in turn enables faster cycling and greater net portfolio efficiency through the potential to turn cash on a more frequent basis.
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