NextGen Capital has been established to obtain long-term capital appreciation returns by investing primarily in Internet Cloud Computing technology companies seeking venture funding for expanding an already proven business model.
The Fund will target companies with information technology products and serrvices that have one or more of the following attributes: revenues up to $50 million in annual sales; customers who can attest to product and service quality; companies that have achieved profitability and positive cash flow but need equity capital to cover the negative earnings and cash flow while increasing marketing, production and sales. Target companies should have experience and highly motivated management, and ideally, meaningful personal investments in their respective companies.
The Fund’s investments will be made through equity, equity equivalent and venture capital related investment transactions with management of selected companies. While the investment strategy is to seek capital appreciation through securities that have preferences to common shares or that have redemption obligations to limit downside risk while retaining the equity upside, the Fund’s investments also may provide dividend and interest income in certain situations.
The Fund is a Delaware limited liability company established by NextGen Management, L.L.C. (“the Managing Member”). It is a joint effort of NextGen Managing Directors: Choon Shim, Carlyle Eckstein, and Zimri Putney.
Choon Shim, Zim Putney and Carl Eckstein are Managing Directors of NextGen Capital, L.L.C., founded in 1997 to make investments in early-stage technology companies in the mid-Atlantic region. NextGen Capital, L.L.C. was Managing Member of The Next Generation Fund, L.L.C. founded in 1997 and NextGen Fund II, L.L.C., and NextGen Fund II, SBS, L.L.C. founded in 1999. NextGen Capital made twenty-one investments through all funds, closing out its funds and returning capital to its investors in 2011. NextGen Capital raised its capital from 165 active investors - mostly executives of successful technology firms in the mid-Atlantic region, who brought opportunities to the firm, helped vet the opportunities, sat as Board members on portfolio companies and elected an Executive Committee that reviewed pending deals and otherwise advised the firm on business matters.
Principals’ Competitive Advantage
The Fund’s Principals believe their experience, expertise and global relationship provide a competitive advantage in selecting and helping build companies that will provide capital appreciation and an attractive return to Fund investors. The Fund’s Principals have demonstrated ability to:
- Access operational and financial experience spanning over five decades
- Originate proprietary investment opportunities generally as the lead investor from a substantial deal flow based on established networks of business and entrepreneur contacts and associated professional
- Work effectively as a team with entrepreneurial management on an operational, financial and strategic level
- Negotiate value pricing on equity investments
- Accomplish effective diversifications within the portfolio by investing across industry specialties, investing throughout the United States and placing no more than fifteen percent (15%) of the Fund in any single investment
- Apply highly effective due diligence and valuation models developed using the complementary skills of the Principals
- Provide value-added Board of Directors participation in portfolio companies, assisting management and protecting investor interests
- Implement strategic and appropriate liquidity strategies tailored to the needs of the Portfolio Company and the Fund