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What We Look For Capital efficient business models Clear, multi-dimensional revenue streams creating paths to sustainable profitability within 2 to 3 years. Total capital investment over the life of the business should be less than $20 million.
Exceptional teams with clear vision Entrepreneurs with domain expertise and superior execution capabilities. We like working with people who are fun, can concisely articulate their value proposition and have a passion for building great businesses. Significant regional presence Headquarters or significant operations in the Metro New York region. Close proximity is key to our AVI Approach.
Large addressable market opportunity It’s not the size of the total market but the size of the market your product or service actually addresses. Plans should have a realistic understanding of what appropriate capture rate can be.
Show me the customers Companies with proven diversified customer traction.
Sustainable advantage Significant leadership or time-to-market advantage through margin, distribution, value chain or standards.
Synergies with Cava’s proprietary investing model If you’re looking just for money, there are plenty of places to submit. We seek entrepreneurs who are excited to have a partner who cares and who will work to make the company succeed.
Pragmatic valuations True early stage valuations need to reflect a realistic sense of accomplishment to date combined with future potential. Remember, if we are investors in your business, we all want the valuation to grow over time. However, this must come with milestone progress and goal achievement. Unrealistic expectations are a quick path to frustration. ____________________________________________________________________________________________ Suitable amounts of capital will be provided to each start-up based on various factors including stage, milestone development and business model. We typically invest up to $3 million in the first round and reserve appropriately for follow-on investments. This enables the hiring of the best people, scaling of the Sales, Marketing and Business Development engine, the creation of the right processes and implementation of the correct technologies for success. Since we focus on highly efficient business models, this is often enough money to create significant enterprise value, thereby limiting future fundraising efforts and dilution. We do not believe in having CEO’s on the road raising capital instead of executing the business plan. Our intent is to be a lead or co-investor in the Series A and B rounds, providing enough capital to see a portfolio company through the inevitable ups and downs of early business progression. For our companies who have achieved initial goals and are in need of growth capital at a later date, we are prepared and have reserved additional capital for follow on investments. At Cava, when we’re in, we’re in! Sorry, but Cava does not invest in turnarounds or recapitalizations.
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