INVESTMENT PROFILE
BV-Cornerstone Ventures, LP is a mid-stage Venture Capital firm that invests in entrepreneurial companies with steady growth rates and increasing profitability. Companies must possess a clearly differentiated position in their respective market. This differentiation may be as a result of unique technology, sales and marketing or strategic relationships. In general, the Fund will prioritize the stage of an investment, profitability, growth rate and quality of management ahead of a particular sector emphasis or geographic location.
BV-Cornerstone Ventures typically invests in companies in Series B or later stage financings. The Fund targets companies that have generated a minimum of $10 million in trailing twelve-month revenue, with these revenues being indicative of the planned revenue of the business going forward. Within these guidelines, BV-Cornerstone is exclusively focusing on companies with significant revenue growth, a differentiated market position, growing pipeline and value-added strategic partners.
The management teams of target companies must possess proven expertise, both in the specified domain and in general entrepreneurial management. While the management team may need some upgrades or additions, the existing team must possess sufficient leadership characteristics. The CEO must place strong emphasis on prudent cash management, and the team must, in general, be highly receptive to BV-Cornerstone as an active advisor. In all investments, the Fund will take a Board seat, and in many cases an Observer seat to the Board as well.
BV-Cornerstone leads or co-leads the majority of its investments. The Fund seeks to provide between 30% and 60% of the total equity capital raised in the round. The Fund does not intend to "bridge" into new investments, and will generally be a preferred equity investor at market terms.
While the Fund considers investments across the continental United States, investments will be driven primarily by the ability to generate quality deal flow in a given region and the practical ability to add value to the investments on a regular in-person basis. Therefore, the Fund anticipates the bulk of its investments to be made where it has a strong network of professional resources.
BV-Cornerstone invests only in opportunities where the capital requirements of the target company do not greatly exceed the availability of capital from the Fund and its known co-investors. Thus, BV-Cornerstone typically avoids capital-intensive models that entail significant working capital or capital expenditures.
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