Arbor Partners LogoPartners in Tommorows Technology

Investment Criteria

Arbor Partners seeks a high rate of return on invested capital, through the purchase of equity interest, equity equivalent securities, and debt instruments. Our investment concentration encompasses early and growth stage, private companies focused on capital efficient software, semiconductor, and advanced materials technologies. The firm concentrates its investments in Midwest-based companies, but occasionally may co-invest in other geographic locations. The size of initial investments is generally between $500,000 and $2.0 million, with the expectation that we may invest up to $4.0 million over the life of the company.

When assessing a potential investment, we begin our due diligence process once we determine the following core criteria are present:

  • Management: The existence of an experienced, innovative management team or visionary. Management must demonstrate an in-depth understanding of their market and critical success factors.
  • Business Model: A business model that positions the company to be the leader in its respective market segment. The sales strategy must be validated by the market, provide a foundation for sustainable growth, and depict a credible path to profitability.
  • Market: A growing market, able to support multiple profitable companies.
  • Product: A properly positioned product or service validated by satisfied clients and/or well-received by the market's early adopters.
  • Technology: The technology should demonstrate sustainable differentiation, providing the company a meaningful competitive advantage in the marketplace.

In order to ensure that each of our partner companies receive the full value of the firm's resources and support, we consciously limit the number of companies that we invest in. Following careful evaluation, we partner with a handful of capable entrepreneurs who share our team oriented philosophy and commitment to build exceptional businesses.