INVESTMENT CRITERIA  
Our Investment Targets


Geography
Libertas invests in opportunities globally, but prefers investments in companies where the majority of sales are generated within the U.S.
 
Targeted Industries
Broad range of industries, with a concentration on green technologies, manufacturing companies, direct marketers, SAAS, and industrial controls, and where the expertise Libertas and our strategic alliance partners can meaningfully contribute to the success of the company.

We specifically seek opportunities where Libertas can assist in developing and protecting the company's valuable intellectual property.
 
Type of Investment
Libertas focuses on companies with sales from $500M-$10MM that are in need of a growth partners. However, we will also consider building a management team around a great product idea, investing into certain distressed and turnaround situations and management buyouts if these product opportunities present superior return opportunities.

Libertas general avoids pre-revenue startups, unless they have one or more of the following factors (in order of importance):

-Valuable patents or trademarks
-Outstanding management track record
-The niche lies within an area of Libertas expertise (see targeted industries, above)
 
Investment Size
We aim to invest between $250M and $1MM per company, usually over more than one round. We prefer to lead the investment, but will participate in larger deals when given the opportunity to represent a larger group of investors. If the funding requirement is greater than our capital limits, then we may seek additional capital from private investors, commercial banks, and other investment companies.
 
Management
Investing in good people is at the core of most successful business ventures. We believe in partnering with people who have strong values, respectable reputations, and a proven record of success. We seek management teams that demonstrate many of the leadership qualities that we, ourselves, have demonstrated over the years. They include, but are not limited to the following:

    * Strong work ethic  
    * Passion for their products
    * Entrepreneurial and agile management style
    * Recognition of the importance of cash flow and financial planning
    * Willingness to admit mistakes and fix them quickly
    * Great instincts on how to manage growth
    * Willingness to embrace our hands-on management style

Product Characteristics
Although there are many unique variables based on the investment type and industry, there are many common product characteristics that we expect to see in any deal that we consider:
  • Products that meet an underserved or changing consumer need
  • Opportunity to build strong brands (must be plural)
  • Highly differentiated products
  • High gross margins (greater than 50%)
  • Sustainable competitive advantages
  • Proprietary intellectual property

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