Investment Criteria

Investment Criteria

Management:
We firmly believe in investing behind a management team more than a business plan, and therefore look to partner with driven entrepreneurs who have deep domain expertise in their target market. Additionally, we look for leaders who have proven their capacity to build a business and prefer sales-oriented founders with previous experience managing an enterprise sales process.
Industry Focus:
We target enterprise technology companies that provide software solutions and technology enabled services for enterprise buyers. Areas of particular interest to Osage are application software, software as a service (“SaaS”), cloud computing, healthcare IT, data analytics / business intelligence, and infrastructure management software.
Geography:
We invest in companies headquartered in the Mid-Atlantic region, which we broadly define as Washington, D.C. to New York to Pittsburgh, PA, with other regions of the Northeast considered on a case by case basis. We believe this region is short on early stage capital but long on opportunities in enterprise technology given the concentration of talent and large potential customers.
Business Model:
We prefer companies with product based, recurring revenue models over project based models. We also invest in models with strong services built around deep domain knowledge migrating to software or models initially focused on a mix of perpetual license revenue and recurring revenue. Additionally, we look for businesses that bring disruptive innovation, rather than step change improvements, to sizeable markets in excess of $500M.
Stage:
While we are early-stage investors, we prefer companies with proven market traction, which we define as having achieved, or having clear visibility into, an annual revenue run rate of at least $1.0M. We look for companies that have market validation from multiple sources, including several customers, channel partnerships, or license agreements.
Capital Efficiency:
We prefer companies that require no more than $5-10M of total equity capital to achieve cash flow break-even or reach an exit.
Deal Size
and Structure:
We prefer to invest in a company’s first institutional round , and will typically invest $1.0M – $2.0M initially as part of $1.0 – $4.0M capital raises. We typically reserve 1x – 3x the amount of the initial investment for follow-on financing. We typically lead or co-lead investments, and prefer to invest alongside like-minded syndicate partners.