Investing in High Growth Potential Companies
Grayhawk Venture Partners primarily provides capital for companies that have demonstrated the viability of their business model in a well-defined market. Such companies are demonstrating market penetration, experiencing significant ramp-up in orders and are generating revenues in excess of $3 million in annual run rate.

The Structure of Our Participation
Grayhawk Venture Partners generally invests in the form of preferred stock with dividends. In earlier stage situations, we will typically invest $1.0 million to $2.0 million in the first round to allow flexibility to meet future capital needs of the portfolio company. Grayhawk has led syndications with a number of other institutional funds as well as participated with other funds in larger rounds, and in certain situations. Grayhawk also has the ability to provide mezzanine financing for qualified opportunities.

Investment Horizon
Grayhawk Venture Partners generally seeks investment opportunities that have the potential to realize a liquidity event within three to seven years. The optimal exit strategy is a sale of the company to a strategic buyer or a public offering. However, market conditions or other circumstances may suggest other courses of action, including a sale to a financial buyer, recapitalization of the business, private sale of an equity interest to investors, a strategic merger or a spin-off or sale of individual business segments.

Extensive Due Diligence
Investment candidates should expect Grayhawk Venture Partners to conduct extensive due diligence prior to making an investment. The Principals will work closely with an investment candidate’s management to understand its markets, technology, customers, suppliers, and competitors. They will also focus on assessing customer relations, financial statement integrity, accounting practices, market conditions, operations, facilities and products/services. It is critically important to both Grayhawk Venture Partners and the investment candidate that we have a full understanding of the capabilities and personalities of the key executives, the business model and the dynamics of the industry in which the company competes.

Post-Investment Participation
We believe strongly that investors should add value beyond capital. At Grayhawk Venture Partners, with our investment comes our involvement. We believe strongly in giving management significant latitude to manage and operate the day-to-day business of the company. Our team will take a proactive approach in guiding and supporting the strategic initiatives, corporate development activities, and financial strategies of portfolio companies. Active monitoring of company performance, industry trends, and market development is critical to reducing risk and maximizing value for all parties involved. While Grayhawk Venture Partners does not seek controlling positions in its portfolio companies, our investment should be significant enough that we participate in decisions involving strategic direction.