In what technology markets does Longworth Invest?
Internet & Digital Media - Our lives continue to move online. We are investing in the next generation of consumer services, entertainment and media companies.
Systems & Infrastructure - Businesses large and small are very dependent upon their IT infrastructure to run every aspect of their operations. We invest in companies that help these business customers reduce cost, improve manageability and enhance the performance of their IT operations.
Business Internet - The Internet continues to transform the delivery of business services. We are interested in companies that are disrupting established B2B channels and relationships with their innovative distribution models and service offerings.
What is Longworth's typical investment size and stage?
Longworth typically invests $2 - $3 million in a company's first or second round of funding. However, we are very comfortable investing smaller amounts at seed stage or making larger commitments to accelerate growth-stage companies.
What factors do you take into consideration when making the decision to invest?
Large Market Opportunity - We only invest in companies that have the potential to be leaders in a sizeable market. In general, total market opportunity must enable the company to grow to more than $100 million in annual revenue and drive a 10x return.
Competitive Advantage - The most successful companies become leaders with an "unfair" competitive advantage, such as deep domain and market knowledge, crucial intellectual property, innovative sales and distribution strategies that drive down the cost of customer acquisition, etc. We do not invest in companies that will just run a good race, we invest in companies that have a significant head start.
Strong Core Management Team - We look for passionate, intelligent leaders who know their markets and customers well. We expect to help source and recruit additional senior team members as a company grows.
Customer Validation - Customers ultimately determine the success of every company. We focus our efforts on understanding the customer, their needs and how your product, strategy and business model fit that need.
How does Longworth generally find investment opportunities?
In addition to leveraging our extensive relationships with entrepreneurs, investors and other players in the technology community, we focus our efforts and researching and understanding emerging market opportunities. With the conviction that comes from understanding a market well, we proactively reach out to the entrepreneurs that are active in those target markets, to start a dialogue that often leads to an investment. We also like to hear directly from entrepreneurs. Please send an e-mail to a Longworth team member.
How does Longworth add value to the companies in which it invests?
We add value by building management, providing access to customers and partners, and leveraging our experience. As an active and trusted advisor, we'll partner with you to help you build and grow your business without getting in your way. Our talented team of investment professionals helps our companies in numerous ways: we support your capital needs over the life of the company, we help to identify and recruit senior management, and we work hard to open doors to customers and partners.
Who does Longworth co-invest with?
We have strong relationships with leading ventures firms around the country. Some of our partners include: Sierra Ventures, Steamboat Ventures, Hummer Winblad, Polaris Ventures, Atlas Venture, Bain Capital, Battery Ventures, Columbia Capital, Commonwealth Capital, Softbank Capital, Court Square Ventures, Oak Investment Partners and Valhalla Partners.
Is Longworth always the lead investor?
We are the lead or co-lead investor in most cases, but will join other investor syndicates in the right opportunity.
Does Longworth require a board seat?
As an active investor, we generally expect to take a board seat.
Does Longworth have a geographic focus?
Our primary focus is finding the best companies in the most interesting technology markets, not where the company is located.
When was Longworth founded?
Longworth was founded in 1999.
How many funds has Longworth raised and who are the investors (limited partners)?
We began investing our third fund in 2009. Our two earlier funds are fully invested. Longworth's investors include leading corporate pension funds, public pension funds, insurance companies, fund-of-funds and family offices.
What is the best way for me to get a meeting with Longworth?