INVESTMENT APPROACH
Our team of early-stage technology investors is focused on the achievement of one simple mission -- helping entrepreneurs build great companies. A great company is one that achieves profitability with rapid revenue growth in a capital efficient manner. It delivers strong quarter-to-quarter financial performance and establishes sustainable leadership in its market segment. USVP believes that market leaders are built by great teams of people working towards a common vision -- one that includes providing tangible value to customers in a highly differentiated way. By doing so, these companies also create substantial value for all shareholders.
USVP embraces a no-nonsense philosophy that is based on time-tested fundamentals. Our core values have changed little over three decades of investing.
We believe in:- teamwork
- the disruptive power of innovation
- disciplined execution
- frugality
- honesty and integrity
We consistently gravitate to entrepreneurs that share these core values. Our attention to these basic principles has earned USVP a reputation as a thoughtful, trusted partner to multiple generations of the world's leading technology entrepreneurs.
Backing the right people is often the difference between success and failure in our business. To these teams we add the collective expertise of our partners and of the ecosystem of experienced executives, entrepreneurs, scientists, professors, attorneys, accountants, bankers and other professionals with whom we have worked over the years.
Some say we keep a low profile. We prefer to spend our time working with and promoting our companies rather than promoting ourselves. Our reputation occurs as a by-product of the success of your company and our association with it. This notwithstanding, we are active participants in the industry segments, where we invest through conference appearances, sponsorship of entrepreneurial organizations, articles in periodicals and press interviews.
LOOKING FOR THE BEST
Our ideal of a great entrepreneur is one who:- Has a passion for an idea and for building it into a great company
- Possesses unique and commercially exploitable insights on a compelling market
- Can deliver highly differentiated technology assets with a high probability of success
- Has clarity of purpose; can clearly articulate and focus on the company's vision
- Is frugal by nature, and recognizes the need to operate the business in a capital efficient manner -- understanding that ownership dilution is our common enemy
- Has a good reputation and provides references that attest to exceptional competence and potential
- Understands the need for a world-class team with a variety of skills in multiple functional areas, and therefore sees why equity has to be allocated reasonably to other people who will increase the value of the enterprise
- Works diligently toward stretch goals with inspired effort while maintaining flexibility to overcome unforeseen obstacles and adapt to succeed
- Has a track record of getting things done, and is disciplined about measuring performance
- Is honest and reliable
We understand that, while an entrepreneur's track record is one predictor of future success, we are jointly engaged in a high-risk proposition with our entrepreneurs. Therefore, we are not afraid of failure. Nor are we put off by individuals who have taken on high-risk, high-opportunity challenges, worked diligently and competently, and yet not realized their ideal outcome. In fact, we would like to hear about how that experience forged new skills and insights that will provide you leverage in your next undertaking.
We love entrepreneurs that can go "up and down the ladder"--those that can see an opportunity and create a product vision and strategy to attack it, then roll up their sleeves and complete the myriad day-to-day tasks required to realize the vision.
Finally, our approach to teamwork is to be actively engaged with our companies and build around them an ecosystem of support that will increase the probability and extent of their success.
THE IMPORTANCE OF THE MARKET
Along with team quality, the development of a significant market is essential to a company's success. We look for markets large enough to provide a significant growth opportunity for your company. In a highly competitive area, with a great deal of capital at risk, we look for markets in excess of $1 billion in revenue potential. We rarely invest in companies focusing on a market smaller than $300 million. In between, the specifics of the competitive dynamics, the capital requirements and the extent of your company's differentiation will all play a major role in our investment decision.
Within each market, we look for ideas that have a potential to dominate, not merely carve out a niche. In general, the market value of the leading company in a segment is greater than the sum of the value of all other players in that sector. Good outcomes are usually the result of great teams with disruptive product offerings. However, "home runs" come from applying these assets to run-away market opportunities.
PRODUCT, SERVICE AND TECHNOLOGY
We view disruptive ideas and technologies as a key enabler for competitive advantage and commercial success. Making something faster, better or, especially, significantly cheaper can have a major impact on established markets. However, we also look for novel ideas that in and of themselves have the potential to create large markets where none currently exists.
Finally, we recognize that having the most technologically advanced product or service is fleeting unless it is supported by strong execution across all functional areas of a business. Consequently, we work actively to augment your team with experienced talent that have a track record of achievement.
In summary, entrepreneurs -- not venture capitalists -- are the heroes of the venture investing business. If you are an outstanding entrepreneur we would love the opportunity to consider a partnership with you. If we decide to work together, be assured that we will work hard to help you and your team achieve success, and that our interest will remain aligned with yours during the 3-10 years it will take to build your great company.