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Investment Strategy
Flywheel’s investment strategy is to make seed- and early-stage private equity investments in high technology ventures located primarily in the Southwest/Rockies region, with an emphasis on emerging innovation centers in New Mexico, Colorado and Arizona.
The Fund targets initial investments of $100K-$1M in new and emerging innovations and entrepreneurs arising out of the region’s research universities, R&D organizations and national laboratories. Flywheel’s strategy is focused on matching managerial talent with innovative technologies and attractive market opportunities, and then supporting these ventures with the hands-on, operational assistance of the Flywheel team. The Flywheel team is composed of successful entrepreneurs who have strong operational skills as well as disciplined investment experience.
The Fund focuses on the region’s key sector drivers, including software, telecommunications, semiconductors, clean technology, and advanced materials. In addition, Flywheel looks for ventures that meet the following criteria:
Product/services that re-segment existing markets or leverage disruptive technologies;
Business models that offer a capital efficient path to profitability and/or shareholder liquidity; and
Ventures in which Flywheel team’s expertise, experience and relationships can add concrete and significant value.
Flywheel also makes co-investments in technology ventures located in California.
INVESTMENT STRUCTURE
Flywheel Ventures I, LP expects to be the lead, initial investor in seed- and early-stage ventures and to actively participate throughout the company’s lifecycle. As lead investors, Flywheel expects to take board positions on investments, with no more than five active board seats per Flywheel team member at any given time. With respect to seed investments in its target region, Flywheel expects to reserve capital in a ratio of at least 3:1 for follow-on investments.
Flywheel team members aim to be active investors, applying a traditional portfolio management approach with a focus on governance, investment oversight and hands-on support to assist companies in achieving milestones.
