Many businesses created over the past several years developed fundamentally good technologies for unique market segments. Often, however, these companies were either a one-product entity representing itself as an enterprise solution, or an enterprise solution targeting a too small or tightly defined market niche. Companies may have adapted too slowly to the rapidly changing market conditions; they may have overspent and executed poorly on their sales and marketing plans; they may have failed to attract seasoned talent; and, they may have built products in anticipation of markets that did not materialize.

We target companies that address a large market opportunity with an exceptional core management team; possess or can develop a unique and well-crafted product; can construct a compelling business need, solution and revenue model; and, are unwilling to accept second-best in their market position.

Fund

We formed Starweaver Partners, LP as a family of private equity pledge funds targeting turn-around and re-start technology ventures in our target industry sectors.

Through these funds, we selectively invest in technology-oriented companies that established corporations or institutional investors have funded but are looking to sell or spin-out, and troubled companies that require extensive recapitalization, re-work and re-building.

The principal investment objectives of these funds are to achieve extremely attractive capital appreciation through an "old school" hands-on approach to venture capital. We are business builders -- not money managers or financial engineers -- committing a great deal of time to each of our ventures. In fact, we will only seek opportunities to invest our capital where we can also invest our time, our skills and experience, our network of relationships and our knowledge of how to repair and grow early stage ventures. For the types of ventures we seek, investment capital alone is grossly inadequate.

Starweaver adds value to its partner companies by assisting with:

Interim executive management

Team building, mentoring, reality-checks and coaching

Business definition, revenue model relaunch

Product development and marketing partnerships

Development and enhancement of strategic alliances

Technology development evaluation, oversight and integration

Additional investment capital

We make a long-term commitment to partner companies and often take positions in the executive team and on the board. We maintain a significant contact base of operating executives, consultants, intermediaries, industry experts, and entrepreneurs who have added value to our partner companies over the years. In addition, we have long-standing relationships with attorneys, accountants, public relations companies, executive recruitment firms and investment capital sources.

As a result of our hands-on focus with turn-around and re-start technology ventures, we cannot and do not invest in many companies relying upon either "portfolio theory" and a "law-of-large-numbers"; that is, the returns of one hugely successful company will mask multiple dismal investment failures. Rather, we expect each investment will succeed returning a substantial multiple of our time and money commitment.

Experience has shown us that money can always be recovered, but our time cannot. We also believe the investment aphorism: "you make money when you buy not when you sell." Consequently, we are enormously selective and highly critical in our investment decision-making upfront, relying upon our due diligence, judgment, talent, hard work and business network to ensure each venture we participate in is a success.

Starweaver makes initial investments of $500,000 - 1,500,000 as a lead investor. We often will co-invest where we arrange additional capital from other early stage institutional investors.

Our approach is focused and selective when targeting companies for partnership or investment purposes. We employ the following benchmarks in determining our client portfolio:

FAQs:

Q: "Why are you more involved with your ventures than typical venture capital firms?"

A: We do not believe money solves most of the challenges businesses face. In fact, we believe that the lack of money is not "the" problem but rather evidence of more fundamental issues that our hands-on approach seeks to solve. We are also very confident in our abilities and strength of our business network, and thus believe our investment of time is worth much more than our investment of capital.

Q: "Do you get involved in ventures on the West Coast or outside the U.S.?"

A: While we are limited in the amount of time and capital we are willing to commit to any single venture and our need to be the lead investor, we are not limited in the geography of our investment targets. The only restriction we find is that transactions more remote from the Northeastern U.S. require both more time and more capital. We anticipate investing 75% of our fund monies in the Northeast U.S. and 25% outside this area.

Q: "What is the source of your deal flow?"

A: We principally source deals through established relationships with accountants, lawyers, management consultants, investment banks and commercial banks. We maintain proactive relationships with these entities over a period of years and find this to be the most productive source of business. However, we are certainly interested in looking at companies where you are involved. The best way to do this is by establishing a relationship of trust and good rapport with us, not by flipping us your business plan in a one-off transaction. We welcome building relationships with like-minded business builders.

Q: "Do you remain involved with your partner companies for long?

A: We most often retain an operating and board director role through our exit with the partner company. By that time, the partner company will either be repositioned and growing solidly and profitably; merged with other complimentary technologies, products and/or entities to become a self-sustaining business platform; or sold to companies with whom we have an existing relationship. We expect to have a financial exit from our partner companies within 2-4 years.

Q: "Will Starweaver co-invest in ventures where it is an advisor?"

A: Yes, but only if this is agreed to in advance by our client.