What HLVP Is Not Looking For

Companies that expect to have a small percentage of a very large market : Companies that are looking to obtain one percent of a very large market (1% of the $300 billion defense budget = $3 billion) are not of interest to HLVP. Market leaders always control the pricing and gross margins in a market and this is important to HLVP. In particular, HLVP is looking for companies that have a very specific marketing strategy to capture their business and expect to dominate their market niche.

Companies that have a small advantage over their competitors: Competing in the entrepreneurial field is difficult and the Managing Directors of HLVP understand the daunting tasks ahead for entrepreneurs and their team. Teams that offer only a 20-50% advantage over their competition because they are willing to work harder and won't need the overhead of their competitors will run out of steam over the long haul. An order of magnitude advantage over the competition is necessary to provide the returns that the founders and investors are looking for.

Technologists who don't understand the importance of achieving financial projections: Technology is vitally important to HLVP and we value the contribution of leading edge science and technology in solving the users' needs. However, to build a business, the leading technologist in the company must understand the value of financial returns to the founding and investing teams. We are looking for a team that is proud of their technology primarily because it is the engine to create a rapidly growing company toward a solid exit strategy. If the technology doesn't really solve a problem that customers are willing to pay top dollar for, it probably isn't a technology that will build your company.