Investment Guidelines

YL Ventures seeks to invest in companies that have completed the majority of their research and development; are close to reaching version 1.0 of their product (or service); and are, in the principals’ estimation, within two years or less of being able to achieve a "medium size" exit for YL Ventures’ investment.

YL Ventures invests in portfolio companies at valuations that are based on the added value that the fund brings to such companies. The fund manages its risks by staging investments in each portfolio company according to certain milestones. The first investment in a portfolio company is typically small, as it is not intended to fund the portfolio company through its entire path to exit. The second investment takes place approximately half-way to three-quarters-of-the-way down that portfolio company's path to exit. In some cases, strategic investors are invited to co-invest alongside the fund in order to provide not only capital but meaningful support (for example, by becoming a key customer of a portfolio company), presumably increasing the likelihood that such strategic investor will ultimately acquire the portfolio company.