silicon

Investment 101

Our Approach

Investment Philosophy

INVESTMENT PROFILE

Silicon’s investment size has historically ranged from $1 million to over $5 million in equity capital. Our investment committee process for vetting transactions and continuous expansion of best practices enables us to offer value on larger transactions and funding below this range. Our target investments are typically IT services businesses that are immensely profitable but due to excessive infrastructure costs or tremendous accounts receivable wait-time burden have not been able to focus on the big picture. In most cases, we are the majority shareholder and only outside investor. This reduces the distractions commonly associated with having multiple financial investors and permits us to take a differentiated, long-term perspective. We are flexible and creative and pursue investments using a variety of transaction types.

INDUSTRY FOCUS

Silicon Holdings has focused on the enterprise software and information technology services industry since our founding. We look for opportunities to build and grow sustainable, successful businesses in our target markets. We seek companies that provide software solutions and technology services to Fortune 500 companies through proprietory training programs for in-house employees, modeling specialized software solutions to enterprise clients leveraging multi-disciplinary expertise to create a sustainable technology-enabled service. We believe there are various elements to the software business model that can create a differentiated, scalable, and highly profitable business. Identifying specific companies that can be transformed through the implementation of operational best practices and turned into predictable, high cash flow businesses is key to Silicon’s target selection. While our portfolio companies need not fit a specific profile, many of our prospective investments have some common characteristics.

COLLABORATIVE PARTNERSHIP

Silicon Holdings provides a strategic and operationally-focused investment with the goal of adding meaningful, sustainable value to each company within our portfolio. In addition to investment capital, we offer our portfolio companies access to proprietary best practices and an extensive relationship and mentorship network. What sets us apart is our philosophy of working closely with management teams at the outset of each investment to reach a common understanding of business goals, develop the appropriate performance benchmarks, and implement proven best practices. Together, we aim to build some of the very best companies leading the technology sector today. We provide a tailored approach for adding value for each of our companies; we provide strategic, operational, and financial expertise.

Metrices

  • Existing or potential recurring revenue
  • Mission Critical solutions
  • Experienced management team
  • Favorable customer characteristics
  • Defensible competitive position
  • Favorable market dynamics
  • Strong customer value proposition

Our Approach

silicon

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