Investment Focus

Helping turn Disruptive Capital Efficient Ideas into Profitable Companies

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:

  1. Capital efficient
  2. Disruptive technology or business model
  3. Ability to “assist the founders” or team with the founders
  4. Large market opportunity

What does Capital Efficient Mean?

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.

What does Disruptive Mean?

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.

How We Operate

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.

Investment Sectors

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.

Ongoing Support

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

Quotes

"Gabriel Venture Partners has been an investor since our early days and continues to be a partner to Boston-Power. Scott Chou is a pleasure to work with and his insights facilitate a strong relationship between our organizations."

--Dr. Christina Lampe-Onnerud, Founder, Boston-Power

"The Gabriel Venture Partners team has been with us from day one, investing in our earliest rounds and continuing to support our growth over the last two years. Rick Bolander understands the needs we're addressing for both kids and families, is willing to put his connections to work for us, and is a strong advocate for the kajeet team. We feel fortunate to have such an active and committed venture firm on our side that is as enthusiastic as our customers and those of us who work at kajeet."

--Daniel Neal, CEO and Founder, kajeet

"A great venture partner provides more than a capital injection. Gabriel Venture Partners has been a great advocate and supporter of Persistent Systems over the past four years. Rick Bolander's advice and counsel has been particularly valuable as we have rapidly grown the company. We look forward to many more years working with Gabriel Venture Partners."

--Dr. Anand Deshpande, Founder, Chairman and Managing Director, Persistent Systems Limited

"Rick Bolander took the time to truly learn the unique aspects of Concord's business so he could contribute to the strategy and direction of the business, and not just attend the board meetings. Rather than just providing names and number to call for industry contacts, Rick made the call on our behalf, increasing the effectiveness of such calls. The Gabriel partners' industry knowledge and contacts should be of substantial value to budding entrepreneurs."

--Jack Blaeser, Chairman, President and CEO, Concord Communications

"The Gabriel partners, with strong operational backgrounds, are not just financial representatives on the board. They are willing to spend time together, participate in strategic sessions, proactive with ideas, assist in selection of senior personnel, yet not cross the border. With the emergence of the Internet, and venture capital becoming readily accessible, startups formed by people with innovative ideas need help in the operational aspects to build an exceptional company. If you want a VC who will roll up his sleeves, help with design of the plan, refine it, enhance it, talk to Gabriel."

--K.B. Chandrasekhar, Founder, Exodus Communications

"Rick Bolander is an intellectual and understands business fundamentals, and with a genuine understanding of the company, participated actively on the board in shaping its strategy. For a new company, Gabriel delivers lots of value in the business planning to ensure that it is sharp, crisp, and executable; help in tracking the program, adding value in measuring against the plan, and assisting in its adjustment as necessary."

--Matt Taylor, Chairman, CTO and Founder, Tut Systems

"Few people are as enthusiastic with high energy as Rick Bolander of Gabriel, bringing technical acumen with all aspects of business knowledge, to a venture. At Gabriel, the combination of enthusiasm, high energy, on a solid foundation of business expertise, is undoubtedly an invaluable resource for the young entrepreneur."

--Sal D'Auria, President and CEO, Tut Systems

"I have worked with a few Venture Capital firms and what differentiates Gabriel from the rest is simple... Good values, long term views, and prudent business sense. These characteristics define Gabriel and its principles. They have been very helpful with guiding our board, providing strategic planning, market reconnaissance, and more. Gabriel is an integral part of our development and is a primary contributor to our success."

--Brian Hand, CEO, Crossmedia Services

"Gabriel is brilliant at drilling down the value proposition and identifying new opportunities. They are always available to us as a mentor and a vital team member... This is demonstrated by the commitment of the Gabriel team to stand side-by-side to achieve our business objectives."

--Chandra Venkatraman, CEO, Arula Systems

"Gabriel's keen insights on strategic direction and tactics helped us structure and complete a key financing round that is usually difficult to do in our market place. Gabriel is working very closely with us and really knows how to motivate our team. They are smart, extremely hard working, and really completely honest. We could not have accomplished what we have without them."

--Peter Howley, Chairman and CEO, IPWireless