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| Our
Investment Philosophy Technology Funding looks for technology-driven, entrepreneurial companies that can grow to a market capitalization of $100 million in five years. Most of these companies have a distinctive product or service based on a proprietary technology in a rapidly growing market; all are led by entrepreneurs with the vision, commitment, and leadership to build an exceptional business. Every investment Technology Funding makes must have the potential to return 50% per year or better appreciation on the value of the money invested. Although it is attractive to invest early in the next blockbuster company, we can't always pick the right ones. Some win and some lose. Technology Funding balances this risk by investing in companies across the various stages of development. We invest in early stage companies when the valuation is low and a little of money goes a long way. However, in these early stages, the risk is higher that the company will fail. Later stage companies have matured and are more stable; they have built value so investing comes at a higher price but with less risk. Technology Funding also reduces the potential impact of adverse developments in a particular industry by selecting companies in a number of different industries. We further balance the risks by investing in 20-30 companies which reduces the negative effect of a single company's poor performance. We frequently co-invest with other leading Venture Capital firms to share the risk as well as add business and financial expertise. Finally, Technology Funding is a patient investor. We have reasonable expectations of a company's ability to perform; we will provide the management resources, capital, and time that a company may require to achieve its goals and objectives. |