Lambda Funds

The Lambda Funds were established in 1979, and have invested in 74 companies. The firm invests venture capital in companies that dominate a niche market, a sector perhaps only $500 to $1 billion in size. The number of potential competitors should be limited. The total amount of capital needed to become a leading company should be small, generally under $30 million. Companies can sell products or services, but they must have a proprietary position. The firm finances buy-outs of smaller companies where the purchase price is under $50 million. Lambda will make an initial investment of $100,000 to $500,000. The firm is comfortable investing a total of $1.5 million in a company. The firm often syndicates its investments; the size of placements the firm participates in can be as large as $15 million. The firm has coinvested with more than one hundred venture firms over the past fifteen years. Geographically, Lambda prefers to work with companies in the Boston to Washington corridorand California.