Since 1994, Saturn Partners has taken an active role in the formation and management of seed and early-stage technology companies. These types of investments give us the best opportunity to influence a company’s success — and can also produce very appealing returns.

How successful is our approach? It has helped us to consistently provide top-decile returns since our inception.

What We Look For:

    • An innovative solution that presents a novel approach at the leading edge of industry trends
    • A disruptive technology that changes industry dynamics and is hard to replicate or patent-protected
    • A “painkiller” that addresses a critical market need by alleviating a significant problem

Investment Criteria:

  • Substantial market size and potential for recurring revenues
  • “Funding gap” between angel investors and later-stage, larger sources of capital

  • Offers a novel approach to addressing an unmet, critical and immediate market need
  • Proprietary or unique technology that creates a barrier to market entry or first-mover advantage

  • Experienced management team with deep industry knowledge
  • Willing to listen, coachable and receptive to new ideas
  • Capable of executing the business plan and adapting it to shifts in the competitive landscape
  • Committed to creating a successful company and acting with urgency and discipline

  • Capital structure that closely aligns interests of management and shareholders
  • Manageable risk commensurate with the potential for above-normal returns

  • Achievable business plan with clear, viable paths to profitability and liquidity
  • Attractive and practical exit plan

 

Sectors

We seek companies with potential for significant growth primarily in information and financial technology, but also in advanced materials and specialty energy. However, as opportunistic investors, we also look in other industries for companies with the potential to generate exceptional returns.

When we uncover opportunities outside our areas of expertise, we tap into our robust network of advisors and mentors who have expertise across various industries and competencies. This external network allows us to expand our investment universe — and creates a significant competitive advantage for our firm.

Geography

We specialize in identifying promising companies in locations that other VC firms don’t. In addition to the usual suspects (e.g. Silicon Valley, Boston, New York), we focus on areas throughout the United States that are rich with startup opportunities but underserved by early-stage investors. As a result, many of our companies are in unconventional locations.

Why the broader outlook? Three key reasons:

  1. Great ideas and strong talent aren’t confined to traditional VC target regions.
  2. These deals are typically priced more reasonably.
  3. The companies are more receptive to outside guidance.

To learn more about partnering with Saturn Partners, please contact us.