INVESTMENT STRATEGY

SOCIALLY RESPONSIBLE INVESTMENT

Socially Responsible Investment (SRI) means we incubate, develop and expand business that deliver high-quality products and services that enhance lives, provide social good or deliver environmental benefit.

OVERIVEW

INVESTMENT STRATEGY

Our investment portfolio is fully or partially owned by Digital Foundation Ventures depending on individual investment details, agreements and opportunities. All investments will first undergo a comprehensive vetting process via our in-house specialists; proven industry veterans specializing in advanced analytics, design, technical innovation, enhanced manufacturing and marketing execution.

 
 

INVESTMENT

TYPES

Unlike most capital investment groups, we have the ability to provide the services needed to assess, grow, develop, launch and market an investment in-house. 

INCUBATION

Many of our incubation investments are the result of our in-house analytics and strategy teams identifying a specific need in the market then developing a concept to solve for it. Other incubation opportunities arise organically through our large network of entrepreneurs and investors.

 

  • The LP equity stake typically ranges from 50%—100%

  • The investment mix is typically 50% in-house resources + 50% capital

 

With this type of investment, we’re taking an idea from inception to execution. For incubation projects, we provide a mixture of seed capital and resources (such as our capabilities, office space, back-office support, etc) to successfully move an idea from prototype to a finished product.  

DEVELOPMENT

The majority of our development investments begin with an idea, product or service that is well on its way to being fully realized. It simply needs a small push or a little polish to perfect it.

 

  • The LP equity stake typically ranges from 20%—50%

  • The investment mix is typically 70% in-house resources + 30% capital

 

In these scenarios, we typically enhance the product offering through our in-house branding, user experience, product design and marketing execution capabilities. At times we also assist with capital to launch the product or service from a media and sales perspective.

INVESTMENT

TYPES

Unlike most capital investment groups, we have the ability to provide the services needed to assess, grow, develop, launch and market an investment in-house. 

INCUBATION

Many of our incubation investments are the result of our in-house analytics and strategy teams identifying a specific need in the market then developing a concept to solve for it. Other incubation opportunities arise organically through our large network of entrepreneurs and investors.

 

  • The LP equity stake typically ranges from 50%—100%

  • The investment mix is typically 50% in-house resources + 50% capital

 

With this type of investment, we’re taking an idea from inception to execution. For incubation projects, we provide a mixture of seed capital and resources (such as our capabilities, office space, back-office support, etc) to successfully move an idea from prototype to a finished product.  

DEVELOPMENT

The majority of our development investments begin with an idea, product or service that is well on its way to being fully realized. It simply needs a small push or a little polish to perfect it.

 

  • The LP equity stake typically ranges from 20%—50%

  • The investment mix is typically 70% in-house resources + 30% capital

 

In these scenarios, we typically enhance the product offering through our in-house branding, user experience, product design and marketing execution capabilities. At times we also assist with capital to launch the product or service from a media and sales perspective.

EXPANSION

Sometimes an existing company needs to reinvent itself in order to stay relevant. This may include rebranding, updating customer experiences, identifying untapped customer pools or launching new lines of business.

 

This process often requires a fresh approach to all facets of the business; from the product or service to the brand and customer experience. It can also be costly, especially when creating a new line of business or product at the same time.

 

We partner with existing companies to drive this expansion via our in-house capabilities in several ways:

 

  • Resources at a reduced cost for small equity

  • Resources at no cost for slightly higher equity

  • Resources, capital and execution for high equity

 

Depending on the position taken within an existing business, we typically work within the following parameters:

 

  • The LP equity stake typically ranges from 7.5%—35%

  • The investment mix can range greatly depending on the business and need

INVESTMENT

SOURCING

“Be part of the solution.” That’s the first of several philosophical pillars we lean on when sourcing our Socially Responsible Investments. We also stay abreast of industry trends, market fluctuations, disruption opportunities and the competition.

 

As a general rule, we source our investments via one or more avenues:

 

  1. In-House Analysis/Research—We identify an environmental, social or personal need that is poorly served (if at all)) within a given industry vertical. We then design solutions through our in-house incubation capabilities.

  2. Network Acquisition—Our leadership has been disrupting and innovating the entrepreneurial space for the last two decades. Over the past 20 years we’ve also developed a large network of creators, inventors, builders and investors. As a result, a wealth of investments organically present themselves to the team.

  3. State, Professional Organizations & Alumni “Shark Tanks”—Our leadership team has a wide variety of experiences based on geography, industry, universities and professional associations. Many offer competitions for students, recent graduates or local entrepreneurs to pitch investment ideas in a competition setting with the hope of winning capital investment (such as the OKC Thunder Shark Tank program). We purposefully find and fill judge seats in these events to know what investments are on the horizon.

  4. Local Start-Up Community Participation—We believe in community. More importantly, we believe in being a part of it. That’s why we actively participate in local startup/small business events, capital factories and incubators. We’re mentors, advisors, keynote speakers and, with any luck, investors.

 
 

REVIEW

PROCESS

ANALYSIS

Observation. Includes qualitative + quantitative analysis of the investment, industry landscape, competitors, opportunities and threats.

EVALUATION

Examination. Includes investigating the asset’s risk index, competition, cash flow and potential resale opportunities.

DUE DILIGENCE

Reporting. Includes a review of all data (financial, operational, sales, marketing, etc) plus site visits and leadership interviews. Afterwards, all intelligence is extracted and reviewed.

EVALUATION

Decision. Conclusion. Based on multiple models that highlight internal, market, competitive, experiential and customer behavioral data points. The final decision includes not only the feasibility of the investment but the manner in which we approach acquisition negotiations or incubation offerings.

CLOSING

Assessment. Appraisal of due diligence + model learnings’ impact on preliminary terms, negotiation of key terms/conditions, submission of binding offer, final terms negotiation, creation of services and funds release schedule.