ABH Capital

1
ABH Capital

• What we do and what we look for

2
Who are we?

• Private Equity Firm with a Unique Twist
• Principals Own Large Business in Electronics
  Distribution
• One Employee of ABH Capital but Resources of a
  Large Company
• Legal, Accounting, Marketing, HR, etc.

3
What we do?

• Start our own companies from scratch
• Back small startups as the sole investor
• Participate in larger deals through the Eyes of
  Texas Partners
• Sometimes active management and others passive

4
Investment Characteristics

• Strengths Software, hardware and services
• Interest Biotech, Medical Diagnostics,
  Retail/Consumer
• Like to leverage existing relationships
• Tendencies Series A but some LPs and some late
  stage

5
What we look for

• Management academics nice but not the show
  stopper street smart
• Market Large and Growing I like to see
  competition
• Momentum Very important to see things
  accelerating

6
The First Meeting

• Looking for a reason to pass Sieve with Large
  Holes
• Following 2 page executive summary and conference
  call
• Deal Flow is not a Problem but time is
• Identify all the important company vitals quickly
  and efficiently
• CEO and CFO only cover all the bases in a short
  duration
• Remember audience is well versed in the subject
  material

7
Invisible Checklist

• Well defined, well articulated, well focused
  business plan
• Product, Service, Market, Customer, Delivery and
  Pricing
• Sales to date Momentum No Act Just Fact
• Dont oversell, Its a startup we Understand
• Financials trailing 12 months and 12 month plan
• Company Legal Structure
• Organization, Cap Table, Realistic Valuations,
  Management Objectivity
• Opportunity to be last money important enough
  and why

8
Expectations

• Establish a relationship to build on
• Dont seek a yes or no but rather constructive
  criticism
• First meeting to funding six months on average
• Due diligence process is not a negotiation, but
  an opportunity
• Remember
• Investors are seeking good Entrepreneurs, just
  as,
• Entrepreneurs are seeking good investors