Approach
The success of the first Solstice fund validated our approach to venture investing. Commitment to Socially Responsible Investing: Solstice is committed to investing 50% of its capital in socially responsible companies--in the Fund's target industries--that are currently not well served by the venture capital community. Socially responsible investments can generate superior venture capital returns and make a positive contribution to the natural and social environments. Superior Deal Flow and Syndication: Solstice has formed important strategic alliances that further leverage our network. Village Ventures, a corporation that has co-invested with 10 regional venture capital funds in smaller cities and rural areas in the United States, has committed to co-invest $5 million in our Arizona investments. One of our Partners serves on the Investment Committee of Commons Capital LLC, a positive impact venture capital fund, which works with Solstice on deals in alternative energy, education, the environment and life sciences. We have strong ties both to informal networks of "angel" investors and to various venture-investing entities, including: Desert Angels (a Tucson-based angel network); and the Walnut Group (a highly experienced, Boston-based angel group).
Deal Size: Solstice invests in initial financing opportunities where the appropriate size for our initial investment is between $500 thousand and $1 million. Due to the trend toward larger venture funds, few venture funds routinely invest in deals where the appropriate size of the financing is less than $1 million. Geographic Diversity: Our investments are concentrated in the Northeast, a rich entrepreneurial area, and the Southwest, which has traditionally been an underserved market but is now emerging as a center for knowledge-based, early-stage companies. Over the last twelve years, Solstice has emerged as a major venture investor in the Tucson market and a significant presence in other areas of Arizona. We also consider investments in other regions of the United States.
Hands-on, Active Management Team: The Partners believe in taking a hands-on role to support their portfolio companies. With the perspective that many years--and cycles--of venture experience provides, each Partner offers informed guidance, and most importantly, the contacts and introductions new companies require for success. |