Introduction

Extensive experience in investing in public and private distressed debt markets as well as distinctive business strategy and operations experience.

Our ability to identify good companies, acquire them at attractive prices, restructure and help them build best in class corporate strategies and operations can lead to positive outcomes for the companies and significant financial returns for investors.

The time is right for this unique strategy and Foundational Capital has the experience and ability to execute on it with high fidelity.

Process and Philosophy

Deal Sourcing from Four Sources

Investment Bankers/Restructuring Advisors

  • Both principals have extensive relationships with a wide range of world class investment banking firms and restructuring advisors

Venture Capital Funds

  • Connections with VC firms in Austin, Silicon Valley, Pittsburgh and Tel Aviv
  • Alumni network broadens the scope of people who will “take our calls”

Private Equity Funds

  • Deep relationships with PE firms, particularly with Operating Partners
  • Alumni network broadens the scope with PE as well as Venture Capital

LP Networks

  • Partner with strategic LPs that have broad networks

Our Process and Focus

Identify

  • Robust screening and due diligence process focused on companies with Strong IP that provides a strong competitive moat
  • Attractive valuation because of the “risk off” position of investors on companies since the bubble burst
  • Situations where we can be additive

Acquire

  • Acquire the asset at a discounted valuation
  • Restructure the business
  • Secure the capital needed to fuel their growth

Build

  • Build a strong and sustainable management team
  • Develop robust company and product strategies
  • Improve project management and operational efficiencies

Foundational Capital Uses Three Primary Filters to Screen Companies for Investability

Is there a clear need and market for the product or service that the company provides?

  • Are there no or limited alternatives?
  • Is the company’s product or service markedly better or more cost efficient if there are alternatives?
  • Is this a market that is willing and able to pay?

Does the product or service do what it says it does?

  • Is there clear evidence of functionality/reference cases?
  • How robust is the product or service?
  • What are the product or service’s demonstrable advantages in field trials?

Has the company demonstrated the ability to scale the product or service?

  • How has scalability been demonstrated?
  • How is production and/or service being handled?
  • Do costs come down significantly with scale?

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