INVESTMENT FOCUS

In the assessment of all investment opportunities Holdus Ventures specifically looks for:

– Outstanding technology with excellent Intellectual Property protection;

– A Large/New Market with growth: Businesses which have identified and can successfully
be marketed to significant and profitable targeted customers. We offer our international experience to open new markets and to understand the foreign competitive challenge. In addition, we employ expertise and relationships to reduce costs through overseas outsourcing;

– A qualified, experienced management team either existing or to be built;

– A product/service solution that adds quantifiable value to customers and provides immediate payback;

– A business model that provides sustainable competitive advantages;

– Superior returns: The prospective returns have to be commensurate with our opportunity cost and with the resources (capital and human) invested. We prefer to invest in businesses which have the potential to achieve superior margins;

– Risks: The potential risks must be identified and controllable. The risk return tradeoff is the fundamental underpinning of our investment. We invest in early stage companies too.
We consider the downside carefully, as well as the upside, in making an investment;

– Fit with experience: The business should fit within what we know well. One of the key strengths we bring as operators is the ability to help transform businesses either by working with existing management or, by taking over the day operations of a business. Without the ability to apply insights on how to transform a business and take it to the next level, we are unlikely to proceed with an investment;

– Exit: There must be at least one well defined exit. As private equity investors we generally have a 3 to 5 year horizon for any investment. However, also have a separate sources of “patient capital” that is willing to invest for a longer period;

– Western US focus: Our investment strategy is to focus on operations based or to be based in the Western US, because it is predominantly a “middle market economy”, which offers potential for superior growth and the ability to shape a company’s future.