42 Ventures

42 Ventures was founded in 2006 by Ned Stringham. 42V takes a unique approach that is unlike traditional venture firms, angel investors or private equity groups. Everyone involved with 42V has started and grown their own business. And since the investment capital comes from Ned, his team, and a tight circle of advisors, they are true partner in building the business. 42V invests between $250,000 and $1.5 million in a typical deal. There is no time frame on exit, nor is there a fixed structure for investing. The firm maintains an evergreen fund of capital meaning that the team having enough time to support a new portfolio company is the primary constraint, not money. 42V likes companies that already have products and customers and seek out businesses with well defined markets generally focused on a specific industry or specialized function. Since 2006, 42V has invested in 12 businesses. 42V focuses on software-driven businesses that have strong growth potential, high levels of recurring revenue, and a specific industry focus or domain expertise. The firm prefers to get involved before a business reaches $5 million in revenue and after its technology, service and business model have been proven viable and attractive. Typical investment levels range from $250k up to $1.5 million.