Investment Strategy

» A Market-Focused Approach
» The "Right" Deal Sourcing Model
» A Hands-On Investment Method

A Market-Focused Approach

At Alloy, we’re as excited as anyone when we see a cool innovation or a gee-whiz technology. But an innovative idea is just the seed of a solid company. We seek investment opportunities that have a defined end-market and business model; or at least the inklings of one. As we work with entrepreneurs, we are laser focused on the need to identify a clear market need and a long-term business model. Because we know from experience that the most successful companies are those that leverage innovation to solve a burning customer need.

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The "Right" Deal Sourcing Model

Alloy’s early-stage investment model requires a unique approach to deal origination; we’re only as good as the deals we source, nurture, and grow. Our partners have extensive connections in the entrepreneurial community, the IT, Life Sciences, and Cleantech industries, academia, medicine, research, and beyond – allowing them to find out early about the most innovative companies taking shape. While we syndicate all our deals with other venture funds, we do not depend on others for deal flow. More often than not, Alloy is the first institutional investor in a company. At Alloy, we know from experience that the best investment opportunities occur where others are not looking and where there are fewer competitors. Our favorite entrepreneurs are working to solve real customer problems with cutting-edge technology, not seeking to ride the latest hot trend. Given our strategy, it’s no surprise we often work with repeat entrepreneurs to help them build a new idea into a successful second or third company.

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A Hands-On Investment Method

At Alloy Ventures, we invest early in market-driven, world-class entrepreneurs with great ideas and work with them to create large, profitable companies with sustainable long-term business models. By focusing on seed- and early-stage companies in the IT, Life Sciences, and Cleantech industries, we are able to nurture them from their earliest days, through rapid growth and all the way to exit. The Alloy team isn’t afraid to roll up their sleeves and help. Our partners have on-the-ground experience at leading companies, and we use our operational expertise and connections to help growing companies set their strategies, hire key employees, optimize business development opportunities, raise additional capital from venture capital, private equity, and corporate investors, and navigate business challenges. Alloy typically invests $1M-5M initially in a company, and reserves additional capital for subsequent financing rounds. But no deal is too early: we’ve invested as little as $50,000 to help an entrepreneur develop an idea from the ground up.

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