Value Add

YL Ventures typically invests in companies led by entrepreneurs who are excellent managers of their businesses but do not necessarily have the skills and experience to guide their company to a successful exit.  We believe that these entrepreneurs are likely to favor the strategic channeling that culminates with a "medium size" exit rather than the high risk/high reward strategy used by most venture capitalists.  We provide our portfolio companies with significant added value, comprised of a combination of venture capital, investment banking and business development activities.  This is critical for the development of these companies into profitable exits as well as a key differentiator when sourcing investments.  The fund’s added value is composed of the following:

Hands-On, Value-Added Investor - the fund takes an active role in the management of portfolio companies and helps steer and develop them to a successful exit.

Access To A Global Business Network - the network includes potential customers, strategic partners and human resources across all of the industry sectors covered by the fund.

Business Development - the fund actively helps portfolio companies meet the marquee customers that help refine and provide credibility to their products and services.

Company Financing - after its initial investment, the fund manages all of a portfolio company's future financings.  This includes investment rounds where the fund is the only investor as well as co-investment and external rounds where the fund does not invest, thereby removing the burden of fundraising from the management team, so that it can continue to concentrate on developing and growing its business.

Strategic Co-Investors - the fund introduces portfolio companies to strategic co-investors who become key customers, provide product or service credibility and in some cases become the ultimate acquirers of portfolio companies.

Acquirer Sourcing - the fund continuously and actively seeks eventual acquirers of portfolio companies, both from within and outside of its Strategic Advisory Network, even before it makes its initial investment.

Coaching - the fund provides guidance and mentoring to portfolio companies' management.  This includes access to the principals' network of advisors and consultants with expertise in various aspects of the portfolio companies' businesses.

Packaging -the fund helps "package" portfolio companies into entities that are worthy of acquisition.  This includes steering such companies to produce relevant product specifications, execute contracts with employees, suppliers and customers, acquire patents, engage in legal activities where necessary, hire and dismiss staff or make other human resources-related changes, clean the capital table, perform relevant company filings, obtain required licenses and obtain necessary audit reports.

Strategic Advisory Network - the fund is in the process of establishing its informal Strategic Advisory Network comprised of industry contacts in the internet, telecommunications and digital media software sectors.  Members of this network will provide strategic advice to the fund, prior to and during the fund's involvement in a portfolio company.