Investment Strategy
CalCap requires that the companies in which invest in already are established (i.e. not "seed" stage), well-managed, and have an investment liquidation strategy. Moreover the investment strategy we have selected emphasizes the following criteria:
- Investment apportionment typically reserves up to $10 million with co-investment objectives to provide up to an additional $10 million in capital availability per portfolio company distributed over multiple placements.
- A balanced focus on proprietary technologies, including IT, life sciences, and other exceptional opportunities.
- An emphasis on companies that can demonstrate a working proof-of-concept product or process.
- A requirement that all portfolio companies have, or will establish, an HQ located in the U.S. within 2 .5 hours commuting time of a CalCap (or affiliate) office.
Managing Risk
- Diversification - Investment portfolio diversified with respect to sector, geography, and stage of company; balancing portfolio equates to balanced risk
- Deal Structure - Terms customized to minimize risk; most investments have preference terms , are secured and have liquidation preferences
- Financial Oversight - Fund oversight includes the both internal and external controls (auditors and legal counsel) including annual audits
- SEIMS® - Provides standardized timely monitoring of all investments, and facilitates transparency to the partners.
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