The Fund’s technology investment criteria are primarily focused on early stage companies that have either just begun operations, early revenue or preparing to launch a commercial product.
Digitech's investment criteria are centered on making venture capital investments in emerging technology companies.
Company life-cycle focus = seed to venture growth
The Fund will consider early-stage technology companies that have an idea or a working prototype, but may not have yet fully commercialized their products. These types of investments are generally referred to as seed-stage investments.
Our primary focus will be on companies with a commercial product, early revenue streams and looking to accelerate early growth and need a strategic investment partner to cultivate the team and go to market strategy. These are generally referred to as later-stage "seed" or "Series A" investments in venture capital terms.
Other investments may include companies with a more proven product or service that are producing early revenues, but need venture growth capital to further expand into their relevant markets. These types of rounds are referred to as “Series B+” round investments, “venture growth” or “expansion investments” in venture capital terms. In most of these deals, the Fund will invest in these companies in exchange for equity in the portfolio company. In other deals, the Fund’s investment may be in the form of convertible debt. The Fund may also choose to invest in convertible promissory notes issued by small cap companies.
Industry focus = software, healthcare, data analytics, cyber security
The Fund’s technology investments will largely be industry agnostic, but will target key sectors. Our target deal segments include the following:
- Information Technology (IT) Software
- Healthcare IT
- Cyber Security
When sourcing potential deals and screening investment opportunities, we focus on companies that have innovative approaches to manage data (e.g. software, Software-as-a-Service, and other content platforms), have found game changing approaches to leverage IT and software to meet growing healthcare needs and demands (e.g. Healthcare IT), and technology specifically designed to analyze and secure the rapidly growing digital information age (e.g. big data, analytics, artificial intelligence and cyber security).
The Fund will also invest in other technology-related fields on a deal-by-deal basis, primarily for synergistic or vertical integration opportunities.