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| General: |
Investment Strategy
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| At RK Ventures, our initial investment is one of time and energy. We look for companies that not only hold tremendous promise but ones for which our firm is ideally suited to help them achieve their objectives and realize their vision. If we are confident that the knowledge, expertise and ongoing participation that RK offers is just what that company needs, then we closely examine several additional factors before making our first financial commitment. |
- Strong Management. We believe in the power of great ideas but we recognize that people are the key to turning great ideas into great business ventures. Without effective leadership—intelligent, creative, and determined individuals—a great idea has virtually no chance of success. At RK Ventures, we look for entrepreneurs who are not only fervently committed to realizing their vision but who posses the leadership skills necessary to overcome any obstacles they may encounter.
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- We look for Opportunities that Address a Pressing Need. Companies are in business to satisfy needs and to provide solutions to problems. Oftentimes, however, products are created in advance of demand and solutions are offered well before widespread perception of a problem exists. As a result, investment decisions may be poor or excellent for reasons that have less to do with a company’s product than with the times in which it is introduced. At RK Ventures, we invest in ideas whose time has come—products whose development and use can be sustained given the larger economic and political environments (including the regulatory environment), as well as technological trends.
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- We look for a Significant Competitive Advantage. Companies that are well-managed certainly have an advantage over those that are not, but a company’s competitive advantage must be based on something more stable and reliable than management. Great returns may be due in part to great management or even a great brand name, but they are more likely to reflect the presence of a significant advantage with respect to technological developments, intellectual property, network externalities or even being the first company to introduce a particular product where barriers will develop with time. Great entrepreneurs look for these advantages because it allows them to leverage their skills.
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- We Take a Long Range View. The RK Ventures fund will not expire. Thus, decisions to invest, as well as all other decisions, are not influenced by an artificial time frame. RK has no need, for example, to flip the companies in which we invest as quickly as possible. Instead, we have the liberty to remain involved and to help the company reach its goals as long as that may take.
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| Investment Size: |
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| Stage: |
- Early-stage, typically the first or second round of outside investment
- The company must have a well-developed product or service, which has a clear path to market
- Customer and entrepreneur references
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| Industry focus: |
- Financial services and technology
- Healthcare and biotech
- Business services
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