FBR Technology Venture Partners L.P.
The FBR Technology Venture Partners L.P. is a $50 million venture capital fund which invests in electronic commerce, telecommunications and Internet/Intranet software and services. This fund concentrates primarily, but not exclusively, on the rapidly growing technology region surrounding Washington, D.C. It is an affiliate of Friedman, Billings, Ramsey & Co., Inc., but operates independently of the investment bank. As a result, the decision-making process is entirely independent, yet the fund's managers are able to offer more staff and resources dedicated to the technology industry than any other venture capital firm or investment banking firm in the greater Washington area.
FBR Technology Venture Partners L.P. provides the operational experience, strategic vision and resources necessary to turn entrepreneurial ideas into businesses capable of being the world leaders in the markets they serve. The fund managers assist portfolio companies in recruiting and retaining personnel, developing management teams, fine-tuning strategies, establishing strategic relationships, planning mergers and acquisitions, structuring additional financings, providing global contacts, developing distribution channels and identifying and closing key customer accounts.
Fund Investments
Frequently Asked Questions
What is FBR Technology Venture Partners' typical investment size?
What is FBR Technology Venture Partners' investment focus?
Does FBR Technology Venture Partners have a geographic focus?
How does FBR Technology Venture Partners make investment decisions?
What is the best way to send a business plan to FBR Technology Venture Partners?
What should you include in your business plan?
What is FBR Technology Venture Partners' review process?
What is FBR Technology Venture Partners' typical investment size?
Our typical investment is between $1-3 million per company, per round. This investment can represent the only new money coming into a business or it can be a small part of a much larger financing. In addition, because of our affiliation with Friedman, Billings, Ramsey & Co., Inc., we can access much larger pools of capital should the need arise.
What is FBR Technology Venture Partners' investment focus?
Our focus is on electronic commerce, telecommunications and Internet/Intranet software and services. Within these industry sectors, we have a strong bias towards infrastructure and enabling technologies (some examples are listed below).
Electronic Commerce, including:
Application development systems and enabling systems, such as for integrating new technology into existing systems
Automation systems for the financial services industry
Specialized electronic retailing or wholesaling systems serving business and/or consumer markets
Telecommunications, including:
Management, routing, and diagnostic systems for communications carriers and customers
Enhancing technologies surrounding existing communications infrastructure (copper wire, cellular, coaxial cable), such as xDSL
Enabling and enhancing technologies surrounding newly deployed telecommunications such as PCS, HFC, and various broadband technologies
Value-added supplementary services for carriers and customers
Internet/Intranet Software and Services, including:
Infrastructure opportunities
Development tools and enabling technologies
Application systems serving functional or enterprise-wide needs
Content, multi-media, and related delivery systems
Specialized communications carriers and services
Does FBR Technology Venture Partners have a geographic focus?
Our primary focus is the Netplex region (the rapidly growing technology region encompassing Washington, D.C. and surrounding areas of Virginia and Maryland). However, we also focus on the Middle-Atlantic area and have done deals in Northern California and Boston, Massachusetts. Generally, the farther away a deal is from Washington, D.C., the more mature the business has to be.
How does FBR Technology Venture Partners make investment decisions?
Consistent with the approach taken by some major Silicon Valley venture funds, FBR Technology Venture Partners analyzes all deals on the basis of four risk factors - Market Risk, Product Risk, Management Risk and Financing Risk.
Market Risk
We have significant experience evaluating technology markets and realize that it must often be done without the benefit of quantitative market research. Nascent markets cannot always be measured. As a result, our market assessments will often rely on subjective rather than objective criteria. In general, we look for markets with the following characteristics:
Potential for sustainable competitive advantage
Low risk of commoditization
Leveraged use of highly skilled people
Significant potential size
Product Risk
The product must be examined both in the context of its ability to successfully meet existing market needs and its capability for modification as the market changes over time. The ideal product will have the following characteristics:
Manageable technical risks
Many proprietary and differentiating features
Above-average gross margins
Recurring revenue and/or repeat sales opportunities
Management Risk
In assessing a management team, the capabilities of all the key people must be evaluated. We look at a prospective management team's ability to work together, to innovate, to lead, and to deal with the inevitable surprises and challenges of developing a growth-oriented business. Ideally, the management team will be comprised of individuals with successful track records in industries which are relevant to the current endeavor. In all cases, the management team will need to demonstrate a superior understanding of their market and the key distribution channels within that market.
Financial Risk
The long-term financing requirements of the business, adjusted for various risks, need to be evaluated. This evaluation spans all capital requirements, including future development costs, working capital, distribution, etc., plus evaluating all the alternatives for financing, including various forms of equity and debt.
What is the best way to send a business plan to FBR Technology Venture Partners?
Business plans and/or executive summaries should be sent to the attention of Gene Riechers, Hooks Johnston, Scott Frederick or Harry Weller. Our mailing address is 1001 Nineteenth Street North, Arlington, Virginia, 22209. If you prefer, you can telephone or e-mail us to start the process. Our e-mail addresses are: griechers@fbr.com, hjohnston@frb.com, sfrederick@fbr.com, and hweller@fbr.com.
What should you include in your business plan?
Executive summary
Brief history of the company
Description of products or services
Market trends and competitive analysis
Business and operating strategy
Product development and manufacturing
Distribution channels
Organizational charts and management resumes
Historical and projected financial statements, including cash flow
Financing requirements
Venture capitalists routinely have stacks of business plans to review. The executive summary should be no more than three pages and should include highlights of the other sections of the plan. It should answer succinctly the basic "who, what, why and how" questions. Who is on the team? What do you sell and to whom? Why do your customers' buy your products and services? How much money is required? Ironically, experience has shown that the shorter the plan, the higher the likelihood of success. The concise articulation of a simple but powerful concept is the hallmark of a good business plan.
What is FBR Technology Venture Partners' review process?
We typically have a first screening and make an initial determination of interest and next steps. If we agree to proceed, then we will meet the full management team and participate actively in the due diligence process. "No" is fast. "Maybe" takes a little more time, and "yes" can take anywhere from two weeks to three months. We will let you know quickly if your proposal does not fit our investment profile.
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