How we invest

Emerging Technology Companies

Basil Peters has been successfully founding, financing, growing and selling technology companies for 25 years. Applying his experience and accumulated wisdom to building shareholder value in technology companies is the most important way we believe we can generate exceptional returns for our shareholders.

Investing Early

We invest early because that is where, over the medium and long term, the highest returns have been generated. Most often we co-invest with angel investors and early-stage, or seed, funds.

Very Active Management

We also believe that by being very actively involved with our investee companies we can use our experience in building, and financing, companies to help them increase the value of their businesses and thereby maximize returns for our shareholders.

Governance

We believe excellent governance and exceptional boards are the most important controllable factor in building outstanding companies. In the late 1990's, shareholders everywhere saw how badly things can go wrong when companies don't have effective governance.

A key component of our agreement with every investee company is that it have an excellent board; and in most cases that we, and the other investors, have guaranteed representation.

Synergy

We are designing our portfolio of investments to create business synergies. This will further accelerate the increase in shareholder value for our investors and our entrepreneurs.

Assisting with Financings

All young technology companies want to grow quickly -- its a core element of their DNA. Most often, when these companies fail to provide a return to their shareholders, it's because they ran out of money. We believe that we can improve the returns to our investors, and provide a very valuable contribution to our investee companies, by working with them to ensure they receive the financing their companies need. In many cases, we will be the lead investor -- structuring the financing, setting the terms and writing term sheets and investment agreements. In some cases, we will also syndicate the investment among other angel investors and seed funds. We work closely with management to build a good quality shareholder base for this, and subsequent, financings.

Executing the Exit

Experienced entrepreneurs and investors know that it's not unusual for half of the eventual value created in a successful company to be generated by the design and execution of the exit transaction. A page on Angelblog.net illustrates this value creation.

Even the best entrepreneurs have to sell, or IPO, several companies before they really get to be good at exit transactions. One of the most effective ways we add value to our investee companies is by helping them design and execute their exits. We always offer our advice. We may also be involved as active directors or the lead director. In some cases, members of our team may be engaged by the company to facilitate the entire transaction.

© Fundamental Technologies II - 2007