PHILOSOPHY
Zon Capital seeks to be an active investor in all of its investments. The fund maintains a high ratio of partners to portfolio companies; this allows us to commit the necessary partner time and resource to each investment. Zon Capital will always serve on the boards and key committees of our portfolio companies.

Zon Capital brings the diverse and deep backgrounds of its partners to each investment. Each partner has experience in both operating and venture investing and has worked together for many years. We have the ability to guide our companies through the challenges of expansion and growth and devote all of our time and resources to this stage of a company’s development. Our focus is to support and to help build our companies into market leaders, but not to operate the companies themselves. We combine our network of corporate and financial contacts with strategic and operating guidance with one goal in mind; to create a platform for optimal success for our portfolio companies.

STRATEGY
Zon Capital Partners invests in businesses that we perceive to be at an inflection point in their development - companies in which there is ample evidence of market acceptance and proven technology implementations of their product or service. We invest in companies that have experienced managers and are exploiting a technological advantage to become a market leader in a defined information technology sector. Typically, we will invest in companies located in the Mid-Atlantic region of the US, but we will go outside this area under certain circumstances.

Zon investments are in expansion stage companies, businesses that are generating revenue in excess of $1 million from paying customers for the products or services that are the basis of the company’s long–term growth plan. Zon will typically be the first institutional investor in the companies that we back and we like to lead these investments. However, in the current climate numerous opportunities exist to invest in second or third funding rounds for companies as well. Typical initial investments will range from $1 to $2 million as part of a total round of financing for a portfolio company of $2 to 7 million, with follow-on financing available as well. The fund’s focus is a direct outgrowth of the team’s investment and career experience over the past two decades. The strategy focuses on selecting investments that:

• are in an expansion phase – generating more than $1 million of revenue from paying customers for the products or services that are the basis of the company’s long–term growth plan,
• deliver solutions that leverage customers’ IT infrastructure;
• are lead by seasoned management teams;
• have the potential to be leaders in large commercial markets; and
• excel in applying existing and emerging information technologies to create product and services companies with a proprietary advantage.