Gabriel invests in early-stage startups run by passionate entrepreneurs that are taking advantage of changing markets with next-generation technologies and innovative business models. Our unique capital efficient model allows us to focus on smaller, earlier deals with the potential for near-term exits and rapid growth. And while we do not make an investment unless it has multi-hundreds of million dollars of exit potential, capital efficiency means founders and investors are aligned and can succeed when a smaller exit makes sense.
When evaluating deals, the Gabriel team looks for the following characteristics:
Gabriel invests a total of $3M-$6M for a significant ownership stake in capital efficient companies that require no more than $15M of venture capital over their life to reach either, cash flow positive operations, an exit, or a significant valuation to raise growth capital if needed. Gabriel’s capital efficient model doesn’t rely on getting a billion-dollar valuation to achieve the homerun exit to generate significant returns for entrepreneurs and limited partners. The homerun exit in this capital efficient model is aligned with the capital market returns where 99% of the venture backed companies exit at less than a billion dollar valuation. In other words, in a world where M&A deal sizes are shrinking and mega-IPOs are scarce, Gabriel’s capital efficient model is both more resilient and delivers higher returns than larger funds. Our current portfolio includes some of the most exciting companies in their fields, and our successful exits point to Gabriel’s continued commitment to generate significant returns for entrepreneurs and limited partners.
The business model or technology must be a real “game changer”. It could be a whole new technical approach to an established market like digital songs are to music CDs or NextG Network’s use of compact distributed antenna systems to replace cell towers. Or it could be a different business model spin on an existing large market like Amazon did for buying books or Chegg did by inventing the textbook rental market.
Gabriel is typically the first ‘institutional’ money invested in a company, although we often invest alongside angels and other boutique VC firms whom we believe have the right connections and on-the-ground know-how to help a company grow quickly. Some of our recent Series A co-investors in early rounds include Maples Investments, Garage Technology Ventures, Startup Capital, Noventi, and Venrock. When appropriate, our portfolio companies add larger venture firms to lead the later stage rounds, and we’ve syndicated with firms such as, Oak Investment Partners, KPCB, Sequoia, Oak Hill, DCM, and USVP.
Gabriel invests in technology companies across a wide array of industries – from energy efficient LED light sources and algae biodiesel, to college text book rental services and noise cancellation technology for next-generation cell phone headsets. What our investments have in common is the ability to disrupt their current industries to become new market leaders. We will only invest in companies we truly “get” the vision, whose business models we know inside-and-out, because we won’t invest where we can’t offer hands-on operational guidance and leverage our extensive personal networks. This way we can passionately team with the founders to build valuable companies.
Gabriel’s commitment to active investing means we work alongside CEOs to get things done, including financings, contracts, partnerships, strategy, and hiring. We also offer our contacts and expertise for outsourcing development or operations to India and China, as well as contacts with experienced legal, accounting, and marketing service providers. This assistance allows new teams to accomplish their goals faster, without having to hire a larger and costly team until it is truly needed. After all, we believe the entrepreneur and founding team is the engine; their success means success for Gabriel Venture Partners and our Limited Partner investors. Through creating alignment of interest between Gabriel Venture Partners’ investors and a founding team, teamwork is enhanced, execution is more focused and possibilities for success increase as well.
If you think your company’s technology or business model is disruptive enough to be a Gabriel portfolio company, feel free to contact us at bplan@GabrielVP.com