Preferred Investments

Draper Richards invests in early-stage companies, typically in a company's first round of financing. We will make follow-on investments in the company as it grows. The majority of our portfolio is in technology. We believe that information technology - comprised of software, communications, Internet, and high value-added electronic components - is the best place to find large, fast growing markets in which new companies can thrive.

Strategy

Draper Richards requests a business plan description and complete resumés of management from all entrepreneurs. We meet with the entrepreneurs, attempting to identify key traits that have been associated with entrepreneurial success in the past, such as high energy, a must-win attitude, unusual creativity, high personal integrity, relevant experience, strong work ethic, and an ability to prioritize and focus. Draper Richards' judgment of an opportunity is based on our experience and our understanding of the entrepreneurs. We have developed the following preferences:

• A team who is extremely motivated to do whatever it takes to make a success of the company. They must also be well-qualified to take on the challenge and work well together as a team.
• A product or service which possesses some differentiating feature that can lead to the creation of a profitable company. We have a distinct bias toward business models with high gross margins.
• A company which can defend its position in its market once established. Draper Richards' objective is to be an active investor and to add value to its investments whenever possible. As appropriate, Draper Richards will provide advice on issues such as strategy, organization and recruiting, and raising capital. For information on seeking funding from Draper Richards, please see how to submit a business plan.