For Entrepreneurs: Frequently Asked Questions (FAQ)
What types of investments does Masthead make?
Our investment focus is on seed- to early-stage private equity investments in emerging growth, technology-based sectors of the economy. We seek primarily technology companies that can become category-defining leaders in high-growth markets. We are looking for capital efficient companies that offer proven management teams, attractive value propositions, proprietary technologies and the potential for significant value creation. We believe that the single critical factor common to all great companies is the quality of the management team. There is no substitute for leadership. We are looking for entrepreneurs with extraordinary talents and technologies, and who share our vision, our hard-work ethic, and commitment to success.
We look to lead or co-lead the first and second round fundings with a syndicate of leading venture and strategic investors. Geographically, Masthead expects to focus primarily on companies in the northeastern United States.
What types of companies is Masthead seeking?
Masthead invests primarily in information technology and life science sectors that show high-growth potential, and where Masthead partners have extensive experience and expertise, such as:
At what stage of development does Masthead typically invest?
- Enterprise software
- Internet infrastructure and communications systems
- Wireless networks
- Life sciences, with particular focus on information technology applications
Though Masthead invests in all stages of company growth, we tend to make early stage investments. We prefer to act as lead investors, but from time to time we will join rounds in a more passive role.
What is the typical size of a Masthead investment?
We look to participate or lead an investment round of $1 million to $8 million in size. This often represents the first institutional round for an early-stage startup company. We target an overall investment in each portfolio company, including later rounds, of $5 million to $8 million.
How do I approach Masthead about investing in my company?
With our extensive business network, we feel the optimal way of contacting us is through a mutual contact and recommendation. If you are unable to find someone with a relationship with a Masthead partner, please e-mail a copy of your business plan to email@example.com.
How does Masthead's investment evaluation process work?
Once a business plan passes our initial screen, our evaluation and decision process typically takes three to six weeks. As the process unfolds, prospective companies may make several presentations to Masthead partners. We weigh very carefully the impact of a company's presentations, product demos and its business plan, as well as reference checks for the company's products, management team and its customers. We look for opportunities not just to invest, but to build a relationship as well. Our evaluation process is diligent and exhaustive; we invite companies' executives to pursue a reciprocal evaluation of us to ensure compatible vision, purpose and mutual trust. Our portfolio companies and co-investors are our best references.
What is Masthead's post-investment role?
We play a hands-on role in our portfolio companies. We don't just put money in, we also add significant value, which goes beyond just showing up for board meetings. We help in recruiting, making strategy and positioning plans, building interrelationships among our portfolio companies, and opening doors to industry leaders and influencers. We accelerate the growth of our portfolio companies and help position them as category-defining market leaders.