| Our focus is on emerging Pacific Northwest companies seeking their first or second round of institutional financing. We will consider seed stage opportunities if the management team is well established and the product or service well-defined. We purposely limit the number of companies in our portfolio so that our partners can work together to actively support each management team.
Unlike many venture firms, our portfolio is deliberately diverse. We expect our portfolio will ultimately consist of approximately two-thirds healthcare and technology companies, broadly defined, with the balance being comprised of a variety of non-technology deals, primarily business and consumer services and specialty retail.
We will invest approximately $2.5 million to $4 million per company, inclusive of follow-on rounds of financing. Our minimum investment is flexible and may be as low as $500,000. We prefer to lead our investment syndicate, but are happy to participate as a syndicate partner when appropriate. In the latter role, we have a strong track record of helping companies build solid syndicates with some of the industry's most prominent venture funds.
We view each of our investments as a partnership with the management team, and are therefore highly selective in our decision-making process. In evaluating companies, we consider a number of factors, including the following:
Management Team
The individuals comprising the management team must have exceptional credentials, integrity, motivation and the passion to succeed. We also expect each team member to have outstanding relevant industry and domain expertise. We look for cohesiveness between team members and a strong sense of partnership between Fluke and the management team. Notably, we expect each portfolio company to have its CEO in place at the time we close the investment, with the remaining management team filled out as appropriate to the company's stage of development.
Market
The company's market must be large and growing rapidly. Its product or service must solve a real problem experienced by its customers, who are seeking solutions. The business model should be defensible and result in fast growth and good profit margins.
Competitive Advantage
The company must have a technology and/or strategic position that will create a sustainable competitive advantage, and thus the opportunity to dominate in its market.
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