Our Approach

GKM Ventures seeks to partner with entrepreneurs and other investors in building companies of enduring value. As active investors and frequent board members, we work closely with portfolio management to assist with strategic and operating plans, recruiting and interviewing management additions, building strategic relationships and implementing successful exit strategies. As investors and board members, we provide a wide breadth of strategic counsel to our portfolio companies.

We follow a seven-step process in our due diligence program.

» Review Plan and Assess Opportunity

» Meet with Management

» General Due Diligence and Assessment of Business Model

» Check Management and Customer References

» Detailed Evaluation of Market / Product / Technology

» Evaluate Risks / Rewards and Exit Strategy

» Co-Investment Partners

» Investment Decision

Review Plan and Assess Opportunity
We are looking for business plans that clearly present innovative ideas addressing large and growing markets. In making our assessment we look for the following important attributes:

An accomplished management team with the experience, market savvy and leadership skills to execute the business plan.

Clear vision of the market, size and drivers with a precise understanding of the customer's problem and proposed solution. The product or service must provide compelling customer benefits.

Reasonable competitive advantages that offer sustainable barriers to entry. The challenge is finding a market opportunity big enough to build an attractive business but sufficiently specialized that the business has an unfair advantage in the early growth years.

Credible three year projections and reliable historical financial statements. Revenue projections need the validating support of a robust customer pipeline.

Reasonable exit options.

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Meet with Management
We prefer to meet in person with the management team early in the process. Key attributes to us in addition to experience and track record; include industry domain expertise, pre existing relationships with the target customers and the ability to clearly the vision and underlying operating strategy. Experience with prior venture backed companies always helps.

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General Due Diligence and Assessment of Business Model
When we move into due diligence, the partners get involved in evaluating the opportunity and becoming familiar with the company and its key people. In addition to our Investment Expert Investors (IEIs), we may call on a number of market and technology experts who are often employed by successful technology companies. These resources assist us in the due diligence process as necessary.

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Check Management and Customer References
We thoroughly check third-party references to verify the entrepreneur's past career experience. Equally important are reference checks with existing and prospective customers. Enthusiastic product endorsements provide compelling points of reference.

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Detailed Evaluation of Market / Product / Technology
We look for innovative products that have a reasonable selling cycle and which do not depend on a substantial change in customer behavior. We research the company's addressable market and likely competitors. While we agree that assuming technology risk is the business of early-stage investors, we must fully understand the underlying risk factors, especially the rate of market adoption and the challenge of sustaining product advantages.

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Evaluate Risks / Rewards and Exit Strategy
We evaluate the projected financials, especially the revenues forecast and the underlying customer pipeline supporting the top line performance. We model the operations to understand the margins, working capital, staffing assumptions which drive the projected cash flow. Equally important is the three to five year exit strategy.

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Co-Investment Partners
We will always prefer to co-invest with other reputable venture capital firms. If necessary, we will assist in the investment syndication process.

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Investment Decision
The four managing directors as the Fund's investment committee approve the final investment decision. From the point of the investment onward, we strive to align the collective interests of GKM Ventures, the management and other investors so that we can effectively collaborate in building a company of enduring value.

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»	Review Plan and Assess Opportunity
»	Meet with Management
»	General Due Diligence and Assessment of Business Model
»	Check Management and Customer References
»	Detailed Evaluation of Market / Product / Technology
»	Evaluate Risks / Rewards and Exit Strategy
»	Co-Investment Partners
»	Investment Decision

	An accomplished management team with the experience, market savvy and leadership skills to execute the business plan.
	Clear vision of the market, size and drivers with a precise understanding of the customer's problem and proposed solution. The product or service must provide compelling customer benefits.
	Reasonable competitive advantages that offer sustainable barriers to entry. The challenge is finding a market opportunity big enough to build an attractive business but sufficiently specialized that the business has an unfair advantage in the early growth years.
	Credible three year projections and reliable historical financial statements. Revenue projections need the validating support of a robust customer pipeline.
	Reasonable exit options.