Investment Criteria

YL Ventures invests in business areas within the internet, telecom and digital media software sectors in which the principals have previously operated and therefore have significant knowledge.  These business areas include, but are not limited to the following: Web 2.0, Vertical Internet Search, Social Networking, Online Gaming, eCommerce, Online Targeted Advertising, Network Security, Application Service Providers, Enterprise Software, IPTV, Interactive Media, Video On Demand, Peer-to-Peer Networks, Mobile Client/Server Applications, 3G Applications, Telecom Messaging Solutions, Online/Mobile Payments, and Online/Mobile Media Distribution.

YL Ventures invests in companies within the European Economic Area, Switzerland and Israel.  The principals select portfolio companies based mainly on the following criteria:

Product - completed products (R&D is nearly at Version 1.0 or beyond) that are highly desirable by acquirers known to the fund for the purposes of filling product gaps and/or achieving significant time-to-market advantages.  This must be validated by potential acquirers prior to investment.

Management - management teams that demonstrates superior technological and product expertise, and sound ethics.  Management would make a valuable human resource addition to an acquirer’s personnel.

Assets - full ownership rights to intellectual property and adequate protection of such rights, where applicable.

Compatibility - products or services that are fully compatible with the European and US markets.

Use of capital - capital primarily earmarked to cover burn-rate to carry through until an exit event, not for further R&D.  Efficient use of capital promoted by, inter alia, offshore outsourcing to reduce R&D expenditure; distributed system architectures that deploy low-cost commodity hardware, or "guerilla" marketing tactics that involve elements such as cost-per-click advertising and free public relations.