Investors

Monolith Capital understands the needs of both the early stage company and the early stage company investor. Early stage companies often cite a “funding gap” in the investor marketplace between $500,000 and $2,000,000. This investment range is simultaneously too large for friends and family and too small to attract venture capital. At the same time, early stage company investors are frustrated with a lack of quality investment opportunities. According to a 2004 Kauffman Foundation survey, the top three reasons angel investors do not make more investments are:

  1. A lack of business proposals that match their investment criteria,
  2. A lack of faith/trust in company founder/management, and
  3. A lack of quality business proposals.

Monolith’s approach to identifying and partnering with emerging companies attempts to address each of these key concerns.

First, we employ an investor-focused screening criteria in both taking companies on as clients and in developing the companies’ business strategies and execution plans. Investor-focused criteria that we use for company evaluation includes:

  • Large, addressable potential market ($1B+)
  • Unique, defensible value proposition vs. the competition
  • Solid, experienced management team
  • Revenue realization within twelve months
  • Cash flow positive within twenty-four months
  • Solid growth potential beyond the initial target market

Second, we work with each of our clients to secure the right management team. We critically analyze the current team, identify weak spots and gaps in capabilities, and work with a network of talent providers to put the right team in place to drive value. Monolith’s General Partners also provide a wealth of business experience and capability and often serve as “stand-in management team members” until the right resources can be identified and secured.

Finally, we bring to our investors only those opportunities that, after our intense strategic advisory engagement, we believe have a legitimate opportunity to win, and win big. Of the six to eight companies that we take on each year, roughly half of them will be presented to our investors for capital raise following the strategy formulation stage.

In summary, we see our value-add to investors as follows:

  • We screen potential clients based on an objective, investor-focused criteria set,
  • We assist our clients with a range of services from market analyses to revenue acceleration plans and capital requirements,
  • We recommend capital raise only after business model, strategy and execution plans are developed and validated, enhancing the company’s probability of business and capital raise success,
  • We believe strongly that for companies in this stage of development, a dollar of revenue is far more valuable than a dollar of capital,
  • A significant portion of Monolith’s compensation is in the form of common equity in the company, and
  • Monolith continues to drive value throughout a company’s lifecycle by requiring a seat on each company’s Board of Directors.

Securities are offered through Bridge Capital Associates, Inc. Member NASD and SIPC. www.bridgecapitalassociates.com