1. In what types of companies does Levensohn Venture Partners invest?

LVP invests in software, semiconductor, and communications companies that are typically just beginning to grow revenues, a stage that we characterize as Early Commercialization.
 

2. Why does LVP concentrate on Early Commercialization Stage investing?

We focus on companies in the Early Commercialization Stage because it is where LVP adds the most value as an investor. We have decades of collective investment and business operating experience. When we invest, we make a commitment to get involved in the strategic and operational development of the company. Very few venture capital firms specialize in Early Commercialization Stage investments.
 

3. When does LVP typically invest?

We invest after the company has completed product development, has at least one established customer and is beginning to gain market acceptance. This is typically a series B or C round of financing. We lead or co-lead rounds that provide enough capital for companies to reach breakeven.
 

4. How much does LVP invest in a company?

We seek to invest between $3 million and $5 million in our initial investment round, with the expectation that we will invest another $3 million to $5 million in subsequent rounds.
 

5. Does an LVP partner always join the company’s Board of Directors when LVP makes an investment?

Yes. We expect to join a company’s board when we make our initial investment in a company.
 

6. Does LVP prefer to lead a round of venture capital investment?

Yes. LVP seeks to lead or co-lead the initial investment round in which it invests. We may or may not lead future rounds.
 

7. How many companies does LVP fund annually?

We are selective investors who make only three to four new investments per year. This concentration allows us to devote substantial time to each of our portfolio companies.
 

8. What information does LVP find most helpful in evaluating potential investments?

LVP performs extensive research before making a final decision about whether to invest in a company. Initially, we review general information about the company’s business model, technology, products, financial statements, management and staff, competition, customers and market potential. We make it a high priority to talk with current investors in the company and conduct extensive interviews with customers and other experts in the company’s market environment to determine if the company is solving a critical business issue or is developing products that are eagerly sought by the marketplace.
 

9. What are the key decision criteria LVP uses to determine whether to invest?

After conducting our due diligence, we look at several indicators that help us decide whether to invest. The most important is whether the company’s product or service has the potential to gain rapid acceptance in a large market. We look for the right chemistry between ourselves, company management and existing investors, to ensure that we are a good fit as new investors in the company. We also like to hear positive validation of the company’s prospects from our network of business associates in the information technology industry.
 

10. How long is the investment process at LVP?

We endeavor to make a decision within a reasonable period, typically a month after beginning the research process. We continually keep management and other investors informed of our findings and whether our findings are leading us toward making an investment.
 

11. After making an investment, what does LVP do to support the growth of its companies?

LVP is actively involved with each of our portfolio companies. In our role as shareholders and board members, we seek to address strategic execution issues in virtually all phases of the business, including corporate finance, human resources, management team development, sales and marketing and strategic partnerships.
 

12. How can I submit a business plan to LVP?

The best way to make contact with LVP is through someone who knows one of our investment professionals (Your attorney, accountant or university colleague may be of assistance). We learn of many new investment opportunities through our network of early-stage venture investors and other players in the technology investment arena. If you do not have a contact who knows us, please submit your business plan by email, fax or regular mail. Please see the Contact Us page for details.