Company Investment Criteria

First Light Capital invests in exceptional entrepreneurs who have the talent and drive to build successful, high growth companies in rapidly expanding markets. We focus on early stage product and service companies in enterprise software and integration, communications and business-to-business e-commerce in the Boston area.

In assessing companies for potential investment, we ask ourselves a few key questions:

Initial Screening Criteria

Industry- Is the company within our area of focus? Does it play in the enterprise software and integration, communications and business-to-business e-commerce marketplaces?
Valuation- Is the valuation appropriate to the milestones achieved?
Development Stage: Is this an early stage company?
Geography- Is the company in the New England area?
Concept- Does the product or service offered solve an important problem?
Customer Traction: Have any customers signed up to pay for this solution?

Customers and Markets

Markets

How robust are the trends driving the growth of this market?
How fast and how large can this market grow?

Customers

Who will buy this and what will they pay to solve this important problem?
Which marquee customers have bought to date?
How long does it take a customer to buy, how fast can revenue be ramped?
How will you scale your channels to reach your customers?

Management Team

Why will your team win?

What industry expertise and contacts does the team bring?
What customer knowledge does the team have?
What level of technology expertise and execution ability does the team have?
Who has the organization building skills to work through the growth issues?
What are the key management gaps that need to be filled?

Alliances

Are there any crucial alliances required to execute the business model such as distribution or technology?

Products and Services

What is the development stage of the product or service?
How effectively does this offering solve the customers' important problem?
Can the product maintain strong pricing and margins going forward?

Competition

What are the alternative ways of solving the problem?
Who are the direct and indirect competitors?
How does this offering differ from the others?
Tell us why and how the company can win against competition?

Financial Strategy

How much capital is needed for this financing and what is the valuation of the company?
What are the major driving assumptions of your business model? Show high level revenues and costs.
How much capital is required to achieve cash flow breakeven and profitability? When do you envision the future financings taking place, with which milestones?
How will investors exit?
IPO-why is this a good company for an IPO?
Being acquired- who would buy and why?