Falcon Partners invests primarily in the following sectors: e-commerce, Internet and information technology, with specific interest in businesses focused on the following:
- Systems management (security, storage and performance management)
- Application integration/workflow
- Business intelligence/analytics
- Business process outsourcing
- Groupware and collaboration applications
- E-commerce infrastructure and enabling technologies
The Firm will only invest in other sectors if there is a longstanding relationship with management, and will only invest in businesses with the following characteristics:
- Management must be first-rate with a proven track record of solid, responsible and creative leadership
- The product or service must be in production and commercially available—the Firm will not take significant development risk
- The business strategy must address meaningful business applications with large market potential
- The company must have a technology and/or strategic position that will create a sustainable competitive advantage in its market
- The product must have a clear and measurable return on investment for the customer; business models based on speculative or hypothetical cost savings will not be considered
- The businiess model must demonstrate the potential to be highly profitable and there must be initial revenues and customers in order to demonstrate significant revenue potential
- There must be a well-defined exit strategy, such as potential attractiveness to strategic partners, commercial partners, acquirors and underwriters