In the Early-Stage Investment arena, we view ourselves as “institutional angel” investors, providing not only capital, but business expertise and advice to companies that are in the early phase of their development.
We most often participate when a company is raising between $500,000 and $5 million. We typically invest between $100,000 and $1 million. We usually do so in concert with other institutional entities, such as established venture capital firms or experienced angel investors.
Stonewood has made twenty investments in early-stage companies during the past three years–all but two of them in the greater Pittsburgh area.
Our executives have extensive experience in managing and investing in privately held companies, as well as direct operational experience in technical fields, manufacturing, law and strategic planning.
Although we do not generally invest in early-stage companies, because our region has such a robust technology sector, we occasionally participate in early stage funding transactions. In such cases, we prefer to invest in companies that have developed unique solutions to clearly-defined problems in the marketplace–solutions with enough growth potential to offer significant upside for both the business and its investors.
Although we prefer to invest in companies that are involved in technical fields, we have also made opportunistic investments in health care, drug discovery, media and consulting businesses.
We are most interested in companies whose solutions can be defended against competition through the establishment of intellectual property rights or strong, market-based barriers.
We look for executive teams that are experienced in the business sectors they target, and in the management of early-stage ventures.