UEI makes small seed and growth capital investments in businesses with profitable services models and recurring revenue streams.
These investments are in both private and public companies as UEI is stage agnostic. However, a bias does exist toward investing in small private companies as a “micro-VC”. The public security investing practice is an effort to take advantage of terrific investment themes if there exists, at a given point in time, no way to play them in the private markets.
UEI prefers to work alone as a lead and founding investor and does not typically seek institutional co-investors. UEI will, in certain circumstances, partner with other Angel Investors, High Net Worth Individuals, or other Micro-VCs interested in follow-on investments in UEI’s portfolio companies. The private investing business, particularly the Venture Capital and Growth Equity portions of the asset class, is in the midst of a multi-year restructuring. The inherent dislocations underway put a premium on keeping capital structures simple and free of investors whose decision-making can be unduly affected by issues and changes within their own investment practices.
Segment & Business Model Foci:
Services businesses with recurring revenue are present in a range of industries from Cloud Computing and Software-as-a-Service to Healthcare, Physical Security, and Recycling Services. UEI will consider an investment in any services business with a proven business model. It will not consider investments from the following industry segments: Clean/Green Technology,” Renewable” Energy, Social Networking or Social Media, Restaurants, Biotechnology, and any business with greater than 5% of its revenue from the Federal, State, or Municipal Government.
As the firm name suggests, UEI will invest in businesses where the economics of adding incremental customers are compelling and, many times, are masked by traditional forms of financial reporting and conventional accounting. The practice of Unit Economic Analysis answers this very fundamental question: How does this business make money? If the answer is both a clear and compelling “Yes”, UEI will endeavor to invest.
The firm “shoots straight” and will promise crisp, friendly, and honest feedback on credible investment opportunities. If you’re thin skinned and need things “sugar-coated” don’t call. If you value courteous but candid and forthright conversations (they are the most efficient after all), we’d be happy to evaluate your business. And, yes, UEI’s best references are the CEO’s its owner has served over 16 years in the investing business.