What is the average stage of the companies that present to the Band?
The Band likes high technology companies with strong teams, promising technology, big potential markets, solid barriers to entry, and IPO prospects. Since we like to be the first money into the deal we recognize that for seed stage companies being certain that a company is all of these things is impossible—that is what makes investing at this stage risky. However, the more a company is like this, the more likely it will succeed in raising money from the Band. Because we do invest very early, preferably the first money into the deal, valuation expectations are very low. Generally we expect to own a third of the company for a $1M investment.
