Investment Profile

We place great emphasis on partnering with visionary entrepreneurs and experienced operating executives. First and foremost, we seek out individuals and teams that exhibit passion, commitment, discipline, and ultimately a desire to grow by adding such similar talent.

We look to identify companies that have strong customer value propositions supported by sustainable economic models that leverage unique and differentiated intellectual property. Our investments typically have the potential to define and/or dominate their product categories and they operate in markets with compelling size and growth characteristics. Further, many of our investments will have core technologies or product roadmaps that identify adjacent market applications.

Capital efficiency also ranks as important criteria for our investments. We look for business models with sustainable high margins that can leverage inexpensive development and computing platforms and that exhibit low cost go-to-market strategies. In our experience, these companies can reach self sufficiency or exit with reasonable overall capital needs, which decreases risk and dilution and improves results for all stakeholders.

Focus

We focus on Mid-Atlantic based seed and early stage opportunities in the following sectors and verticals:

 
  • Business Software
  • Software as a Service
  • Healthcare and Healthcare Technology (non-FDA)
  • IT Infrastructure, including cloud,
    network and security
 
  • Financial Services
  • Media, Digital Media, and Communications
  • Mobile

We typically become involved at the early revenue stage in a company's development and will make investments in companies whose revenue ranges from zero to $5 million. Our initial investments typically range from $250,000 to $1 million. We approach each investment with a long-term horizon and reserve heavily in anticipation of participating in multiple follow-on rounds.

The following are among other important criteria we consider for each investment opportunity:

  • Strong proprietary core or platform technology
  • Customer focus versus technology focus, i.e. strong customer value proposition
  • A large, high-growth market opportunity validated by existing competitors, substitute solutions, customer acceptance or developing opportunity as supported by thorough research and market diligence
  • An opportunity to achieve a leading and sustainable market position
  • A defined and achievable go-to-market plan
  • The ability to identify multiple exit options

As a partner, NextStage Capital provides its partner companies with a long-term investment approach, a proven ability to build value at the seed and early stage, and access to a network of executives, advisors, and capital sources.