Investment Process

Daylight Partners has a simple, four step process for determining whether a prospective company is a good fit for a Daylight investment:

Step One
When a target company is identified, two to three of the Partners will meet with the Principal(s) of the company to discuss the business model, obtain insight into the financial status of the company, understand the company needs and assess whether the company is the right profile for a Daylight investment.

Step Two
Assuming the company is profile match, Daylight will assign a Sponsor Partner to work with the Principal(s) of the company to “go deep” on the business and to work with the company on a presentation to the entire Daylight Partners group.  Partners meetings are held every six to eight weeks throughout the year.  Following a 45 minute presentation, we allow 30 minutes for Q&A.

Step Three
Following the presentation to Daylight, the Partners will meet in Executive Session and provide the Sponsoring Partner with investment interest or any follow up questions which need to be answered.  The Sponsoring Partner will gauge investment amounts from interested Partners and will convey this information back to the company Principal.

Step Four
Assuming multiple Partners want to invest, the Sponsoring Partner will work with the company on investment documents and provide the company with a recommendation for which Daylight Partner is the best strategic fit for joining their Board.  Daylight Partners will request that stock or cash compensation associated with Board participation becomes an asset of Daylight Partners rather than the individual Board member.  While only one member of Daylight will serve on the Board, the company can use that Board member to tap into the functional expertise of other Daylight Partners.  Additionally, for deeper engagements, some members of Daylight are available for consulting projects.

Typical Profile and Investment Levels

Daylight Partners seeks to make investments in companies which have both revenue and product, and are also seeking expertise as well as capital to fund expansion.  While Daylight has expertise outside of the technology market, our years of experience are focused in that environment and that is where we expect to make most of our investments.  We expect to see that the current owners of a target company have made serious investments in their own company (more than sweat equity).

Daylight Partners provides (typically):

  • “Initial equity and/or debt investment – range of $250,000 – $750,000
  • Investors with operational expertise across all functional areas with experience in large and small companies
  • Active engagement includes use of partners’ strategic contacts
  • Access to all Daylight Partners

Daylight Partners expects (typically):

  • Board seat

Daylight Partners goal is to have no more than 30 companies in our portfolio at any one time. In order to help our portfolio partners grow their business, each Daylight Partner will serve on no more than three Boards, ensuring that ample time is devoted to each business venture.