The core proposition for CBGF is to invest in existing businesses that have strong entrepreneurial and management leadership, established customer bases, strong operations and some record of or a clear path to profitability.
For clarity, the Fund is not targeting early-stage technology companies. We will evaluate and invest in companies that may not yet generate positive cash flow, but have a proven business model, run rate revenues over $5mm, and a clear path to profitability. Many established companies are prioritizing growth over short-term profit and are investing heavily in their business (e.g. product development, scaling their team, and sales marketing) to capitalize on their growth opportunity. When screening investment opportunities that are not generating positive cash flow, we spend a significant amount of time to understand its business model, the riskiness of its revenue streams, and the path to profitability before the initial CBGF investment is made.