Since our founding in 1976, we have worked with strong entrepreneurial teams to build long lasting companies in emerging markets. Today, we continue to employ a strategy that has worked for over 30 years in making us one of the most successful and respected venture capital firms in Silicon Valley. Investment ideas come to us from varied sources, from our previous entrepreneurs to our own research in different areas of technology. We select the best teams and ideas and build a long-term relationship with entrepreneurs to turn those ideas into commercial reality. Some of the factors we consider when evaluating a potential investment include:

Industry Focus

Funding the information technology sector

We invest in all areas of information technology, from companies developing communication products, to semiconductors, to storage solutions, to mobile applications, to consumer related Internet sites. While we are also interested in services companies, we look for a technological advantage that will enable high growth, high profit margins and operating leverage.

Market Size

Targeting large emerging markets

To build a big and exciting company, you have to serve a big and exciting market. Whether it's a large existing market the company intends to disrupt, or an emerging market the company is creating, we must have confidence that the addressable market will be large enough to support, in short order, a $100 million per year revenue company after achieving realistic market share.

Market Position

Looking for the #1 company

We seek companies with the potential to be dominant players in their markets. That can mean being first to market and building a company with sustainable advantage, or being a fast follower with a competitive advantage so strong you can topple the incumbents.

Stage

Financing all stages from start-up to pre-IPO

We are a true multi-stage venture fund, writing our first check to companies from the seed stage to pre-IPO. We are happy to lead the Series A, putting the first money in, helping build the team, and then supporting the company in subsequent rounds throughout their growth. If it's a great company and our opportunity to invest occurs later in its life, that's fine too. Our large fund allows the flexibility to make a bigger investment at a later stage and still play a very active role.

Capital Needs

Initial investment ranging from seed to $20M

Our typical initial investment in a company can range from under $5 million at the seed-stage up to $20 million or more at the later-stage. However, for the right seed opportunities (typically either a great entrepreneur or an extremely unique idea) we will provide small amounts of seed capital as well. We continue our strong support through subsequent rounds of financing and over time have the capacity to put upwards of $30M into a given opportunity. We believe companies should have the appropriate amount of cash given their stage to stay focused on serving the needs of their customers, while not sacrificing important opportunities due to capital constraints. We love capital efficient models pursuing huge markets, but are not shy about putting big money to work when the size of the opportunity warrants it.

Location

Thinking globally with a U.S. focus

We believe a convergence of great ideas and great people can occur anywhere in the world, and Menlo makes an effort to tap into networks in various geographies to find and invest in exciting opportunities. While many of our portfolio companies have operations overseas, our focus is on companies headquartered within the United States so we can keep our level of involvement and service high.

Looks Like a Fit?

We'd love to hear from you. Please forward an executive summary or business plan to businessplan@menloventures.com.