Vector Capital Group Information

Start-ups are known as notoriously bad bets and popular thinking tells us that the primary reason for their failure is under capitalization. We disagree. More often than not, ideas with plenty of merit and capital fail at the hands of the wrong business model, bad strategy and poor branding... which are all a result of inexperienced management. The team at Vector Capital Group understand the science of start-ups and small business. Provided certain rules are followed, a business is far more likely to succeed. An important component of our investment philosophy is to invest in business categories and companies that are too small for traditional seed and venture capital. There are thousands of niche industries that are severely underserviced because their market size is too small to attract any serious investment. As a result, companies that do build products and services for those industries are rewarded with excellent market share, high profit margins and higher rates of long term customer loyalty. We are very attracted to businesses that exhibit the following characteristics: Have the potential to be a category leader. Be capable of high amounts of automation and self sufficiency. Have a recurring revenue stream from subscription or a consumable. Have low operating costs that can withstand market extremes. We enjoy the challenge of creating strategies that get start-ups off the ground with small amounts of capital and protecting the founders equity through organic growth. We are not interested in a quick exit and seek long term growth and profits (ie. buy & hold). Your brand is your identity. It's what consumers think of you and your products the instant they see or hear your name. And what they think heavily influences their purchasing decision. Even in the current environment of crowd sourced opinions, a strong brand can overcome poor ratings and feedback. Once a brand identity is in place, the job of marketing is to reinforce that identity with imagery and messaging. Via our deep experience working with ...