Catalyst seeks to forge enduring partnerships with entrepreneurs and co-investors to help create and grow successful businesses from exceptional ideas. We devote the time to understand the entrepreneur's vision, and are prepared to bring our extensive industry experience to the table to realize that vision. Our disciplined, five-tiered investment strategy is analytical, innovative, responsive, accountable, and fundamentally designed to minimize risk and maximize value:
Invest early - By investing at the early stage, we have the opportunity to work intimately with management and co-investors to refine and build on a company's development plan and business model. While we typically make our first investment in a start-up at the early stage, we reserve capital for significant support and participation later on. Catalyst typically makes a first investment in the range of $1-3 million, but may invest more or less than that, as appropriate. Generally, we expect to invest a total in the range of $7-12 million in a given portfolio company as it makes progress toward a successful exit.
Focus on technology solutions in health care - Our investment focus is on technology-based solutions in health care and the life sciences, rather than pure science. This approach allows us to participate across a spectrum of opportunities without taking on heavy scientific risk. Typical investments include medical devices and technology, life science instrumentation, and diagnostics.
Focus locally - We concentrate on opportunities in greater Boston and the northeastern United States. Not only is the Northeast a center of innovation in health care and life science, but focusing on ventures in our own neighborhood allows us to play an active leadership role and leverage our extensive network of relevant industry, academic, and clinical contacts.
Take the lead - We believe that taking the lead on our investments is crucial to providing value. Our experience tells us that superior returns are driven by a true partnership between investors and management, requiring active communication, energetic participation, and common goals.
Plan for the exit - A successful exit is a goal sought after by investors and entrepreneurs alike. To achieve this goal, a key component to our strategy is to finance companies until they reach financial independence, typically four to seven years. That means we are committed to working with management and co-investors to prepare each company for steady and growing revenues and profits. We plan for this goal at the outset and make subsequent financing decisions with an eye toward their impact on achieving the company's exit strategy.
