We do what we know best. We concentrate on markets where we have the depth and breadth of experience and contacts to add unmatched value.
We look for promising teams led by talented entrepreneurs, developing cutting-edge technologies in significant markets. In return, we are an active partner and an unparalleled asset to our portfolio companies.
In choosing investments, our approach is personalized, not institutionalized. By investing in fewer companies, we're able to devote necessary partnership time and capital resources to each investment. We don't spread ourselves too thin just to increase the size of our portfolio.
We've learned that a systematic investment process generates superior returns. So we take a disciplined approach with each stage of the investment process, from sourcing new investment opportunities, to screening decisions and due diligence, to structuring and negotiating terms, to working actively with management teams, to ultimately realizing investment liquidity.
Our thorough investment decision process includes an emphasis on detailed evaluations of the company's management, the technology and the potential markets. A good starting point is with the company's business plan, which should clearly and concisely describe the technology, the products and services, the markets being addressed, the growth strategy of the company, the financials, and the management team.
Quality Management Team
Integrity, knowledge and cohesiveness of the management team are by far the most important factors affecting the Newbury Ventures investment decision. We look for teams that demonstrate leadership, vision, energetic entrepreneurial spirit, and accountability.
Sourcing Deal Flow
Because we've been investing in our target industries for over many decades, we've established a broad range of relationships and industry contacts. Newbury's rich, global network includes solid relationships with many of the world's top entrepreneurs, venture capital investors, research labs, and high tech and communications companies. This has resulted in a steady stream of high quality, proprietary deal flow.
Screening and Due Diligence
The due diligence process will include significant collaboration among the Newbury investment team. Initial screening is typically handled by one or two individual partners, with a focus on characteristics of management, market dynamics and opportunity, product attributes and proposed terms of a deal. If all goes well, the company will present to the full Newbury partnership, at which point we will identify the appropriate next steps and outline the due diligence process.
After we have satisfied our due diligence requirements, we like to make decisions on investments quickly. The Newbury Partners make the final decision on every investment together. It's a true team effort.
As the lead or co-lead investor in virtually all of our portfolio companies, we take active, long-term roles in guiding companies to become successful, market-leading businesses. In most investments, a Newbury partner will serve on the company's board of directors. We provide advice and consultation on business strategy; and assist in identifying and screening additions to the management team. We help set and review priorities and operating goals. We look at expansion into international markets as well as evaluating and securing strategic partnerships. We are also very experienced at planning and securing additional rounds of financing.
Each investment decision includes a roadmap of likely exit strategies. Typical exits are through the sale of a company to a third party for cash or marketable securities, or a combination thereof, or through an IPO. While specific company needs and prospects as well as market conditions will determine the nature and timing of exits, our active involvement is important in managing and guiding the exit strategy.