Accelerating the Next Generation
of Software and Internet Services
of Software and Internet Services
Software and Internet Services Investment Strategy Split Rock's software and internet services team is focused on partnering with entrepreneurs with the vision, skills, and ambition to build leading companies. We complement management team skills with over 30 years of investing experience. We invest in software-driven companies whose products are delivered as on-demand services, premise-based software, and appliances. Geographically we concentrate on investments in the West Coast and Upper Midwest regions. Our recent investment areas focus on the following broad sectors:
- Web-based Business and Consumer Services
- Marketing Automation
- Enterprise Analytics
- Real-Time Information Services
- Enterprise Infrastructure
While these sectors continue to be of interest, we are constantly looking for new and innovative business ideas with outstanding potential.
Software and Internet Services Investment Criteria Our approach is to partner with dedicated entrepreneurs to deliver innovations which serve new markets or address existing markets in a new and compelling way. With this in mind, we seek software and internet services companies with the following characteristics:
- Entrepreneurs and management teams with the capacity to translate innovative ideas into compelling businesses
- Target markets that can grow to greater than $1 billion over time
- Companies which can generate $100 million in revenue within 5 years
- Business models with the following attributes:
- High gross margins (>50%)
- Potential operating margins in excess of 20%
- Recurring revenue streams
- Capital-efficient growth plans
- Efficient methods of customer acquisition
- Sustainable competitive advantages