Techfarm - Investment Criteria

Typical Investment
Techfarm Ventures typically provides initial funding in the range of $1.5 million in an investment round of $3 - $8 million. We typically invest alongside other investors and can usually secure additional capital from funding affiliates.

Although Techfarm Ventures prefers to serve as a lead investor, we will consider co-investing in a non-lead position. In either case, we remain firmly committed to our portfolio companies and will typically participate in subsequent rounds of financing.

Seed Investments
Techfarm Ventures seeks investment opportunities at the earliest-even conceptual-stage of companies. After providing an initial infusion of capital, our team, together with the entrepreneurs, begin to develop the business. This includes:

creating business and marketing plans;
developing financial strategies;
recruiting executives;
building teams;
utilizing industry contacts.

The participation of our team members at the seed-stage yields a significantly improved investment opportunity. It's at this inception stage that our portfolio companies benefit most from industry and financial expertise. Techfarm Ventures, and its management team, prime seed companies for success through our ability to develop working relationships and recognize trouble spots early on.

Investment Criteria
Within the arena of core technologies, we seek companies that have:

first-rate management;
a superior technical team;
solid intellectual property positioning;
clear competitive advantages;
sustainable market demand;
a compelling business model;
the potential for market leadership in three to five years.

Transitional markets, poised to undergo a significant market shift, are particularly attractive. A rapidly changing industry can positively influence market demand for a new technology and strengthen investment opportunity.

Geographic Focus
Techfarm Ventures invests in high-technology companies throughout the United States. Our office is located in the heart of Northern California's Silicon Valley.

Investment Process
To initiate the investment review process submit an executive summary for review.

If your venture meets our investment parameters, a Techfarm Ventures manager will contact you to arrange a meeting with your management team.
Your team will present the investment opportunity to one of our Directors, who will actively investigate your proposition. This generally requires several meetings.
Simultaneously, Techfarm Ventures will conduct an "independent due diligence process" that draws on our knowledge within the industry. After satisfactorily completing this process, a meeting will be scheduled for the presentation and formal approval of the investment opportunity.

The process typically takes between 30 and 60 days from commencement to final review. Legal documentation requires an additional three to four weeks. The transaction will close, and funding will occur, on the completion of the legal process.

Capital Network
Techfarm Ventures and our portfolio companies benefit from the long-standing relationships between our Managing Directors and industry leaders, investment bankers and other venture capitalists. Our carefully maintained network provides advantages in terms of market insight, new technologies and deal flow and is particularly beneficial in the fulfillment of our independent due diligence process.