Working with Alloy
At Alloy, we work with companies at many stages in their development lifecycle - sometimes incubating them from the seed of an idea, and sometimes getting involved much later.
At whichever stage we invest, Alloy's ultimate goal is to build successful companies that reward investors, entrepreneurs, and limited partners. For more information on how we partner with entrepreneurs to build great companies at every stage, click on the categories below:
Entrepreneurs driving companies in their earliest stages - often when the "company" is just one smart person with the seed of a great idea - not only need seed financing, but hands-on guidance building their businesses from the ground-up. Through our incubation and entrepreneur-in-residence programs, Alloy hosts entrepreneurs in our office and helps them turn an idea into a solid business plan. We also provide seed funding to young companies that have great ideas with real market potential, but which may not be ready for "prime time". When Alloy gets involved with a company at this very early stage, we often help draft business plans, hire teams, and hammer out the nitty-gritty that's needed to build a company from scratch. Then, through our extensive industry connections, we introduce young companies to the partners they need to succeed. Over the years, Alloy's incubation and seed-stage investing has produced some of the most successful IT and Life Sciences companies, including Avidia (acquired by Amgen), Camitro (acquired by Arqule), Adiana (acquired by Cytcy/Hologic), Favrille (acquired by Baxter), Conductus (completed an Initial Public Offering), Polimetric (acquired by YouGov), InPart (acquired by Cadence), Portola Communications (acquired by Netscape). Some of the companies we've incubated or seed funded more recently include Retrevo, the first matchmaking service for people and electronics that makes finding, buying, and using electronics products simple and fun; BÂRRX Medical, which develops treatment solutions for disorders of the digestive tract, including bleeding disorders, pre-cancerous conditions, and early cancers; and Innvotech, which does spinal implants for treatment of lower back pain.
Early-stage companies are all about hyper growth. With a core team in place, a clearly defined market opportunity, and an initial product, early-stage companies need critical support to reach the next level of success. The core of Alloy's business is early-stage investing. We help companies start strong out of the gates, working with entrepreneurs in the trenches - building out teams, consulting on product growth strategies, mapping out expansion plans, and helping secure further rounds of financing. During the early growth phase, Alloy leverages its network of industry and financial contacts to help its portfolio companies forge the long-term partnerships they need to ensure ongoing market leadership. When we say "early stage", we don't mean a science project, but a company with a clearly targeted market; we may identify a technology or innovation out of a research institute or an academic institution, and then follow its development for months or year, investing only when the company has built a solid initial team, defined a clear market opportunity, and identified target customers. Alloy's early-stage investing has produced market-leading companies in the IT and Life Sciences sectors, including Sapient Health Network (acquired byWebMD/Healtheon), Rainfinity (acquired byEMC). Some of the early-stage companies we've invested in recently include Nitronex (Developing Gallium Nitride based RF power transistors for WiMAX and other communication applications), Teradici (ICs for desktop virtualization enabling PC-over-IP), Optimedica (laser based opthamology instruments), KFx Medical (Device for percutaneous repair systems for rotator cuff repair), Genomatica ("Metabolic engineering" for renewable production of commodity chemicals), Pacific BioSciences(Ultra-fast genetic sequencing).
While Alloy usually invests in early-stage companies, reserving capital for significant follow-on rounds, sometimes we'll join a company in its later stages. If a company has a large team, a fully-developed product, core customers, and growing revenues, Alloy may invest if we can identify a synergistic fit with one of our other portfolio companies, or one of our partners can offer specific sector expertise. The partners at Alloy will invest in a later stage opportunity where we have some unfair advantage in evaluating the risk/reward profile, due to our team's extensive operating experience in fields such as biotech, IT systems, medical devices, and beyond. When we get involved at a later stage, Alloy helps companies define their long-term growth strategies and plan for a successful exit. Some of the notable later-stage investments we've made include Nuance Communication (acquired by cisco), AccelGraphics (acquired by Evans & Sutherland) More recently, we invested in the later rounds of Fluidigm(develops, manufactures and sell Integrated fluidic circuits), Cortina (Communication chips for networking and telecommunications), Xactly (software as a service solution for sales performance management) In each case, our team's inside knowledge in these unique sectors has allowed us to offer strategic guidance to these later-stage companies nearing exit.