Milestone concentrates on companies that solve business problems and address consumer needs through the innovative application of information technology.
- Focus: Technology-enabled service businesses, especially those that offer software-as-a-service, data-as-a-service and mobile applications. We like recurring revenues, high gross margins and well understood customer economics (acquisition costs, lifetime value and attrition).
- Sector Emphasis: Digital Health, Financial Services IT, Digital Media, Information Services, Marketing Services, Enterprise Technology.
- Stage: Early institutional round. Post Revenue. Modest cash burn rates.
- Geography: Primarily the Northeast and Mid Atlantic but we make investments in other geographies.
- Size: Initial investments usually range from $500,000 to $1.5 million however in certain instances we will team up with our limited partners to invest in excess of $2 million in a first investment. We also hold reserves for follow-on rounds.
We gravitate toward opportunities that are capital efficient, i.e. businesses that have the option to achieve material profitability and high returns for investors with approximately $5 million.
We prefer to lead or co-lead our investments and have a strong track record of attracting capital from high quality co-investors to fill out rounds that exceed our bite size.