Investment Criteria

The Tenfold Investments investment criteria concentrates on a select portion of private companies which expect to show rapid growth in sales and earnings, demonstrate superior management capability and possess the opportunity for above-average profitability. Tenfold Investments evaluates investment opportunities on the following criteria:

Customer Accepted Solutions for Rapidly Growing Markets. Tenfold invests in lower middle market, rapidly growing companies that deliver solutions with a quantifiable return-on-investment. We also are interested in new, refined or reinvented solutions that are applicable to large existing markets where rapid payback can create high growth rates.

Market Leadership. A good candidate should pre-empt the competition. Innovation, pricing and building a strong reputation for service are primary ways by which successful companies will maintain an existing market as well as create new markets to sustain growth.

Exceptional Management Teams. Tenfold looks for companies that have either complete or near-complete management teams with unquestioned integrity, proven experience and strong performance track records. In cases where the team is not complete, Tenfold is able to provide assistance in introducing and/or identifying excellent candidates with the skill set to help propel the company forward.

Management Ownership. Tenfold believes that the best results are attained when the senior management possess a meaningful ownership interest in the company with appropriate economic incentives, typically through stock options plans to attract and reward key personnel.

Defensible and Differentiated Technology-Based Solutions. We look for companies which have developed products or services that are differentiated and defensible. Mid-stage companies that only differentiate themselves by marketing or sales execution are vulnerable to incumbent technology companies. As an investor, Tenfold Investments advises companies on upgrading marketing and sales capabilities, but the company must have technological advantages in the market first.

Recurring Revenue Models. Tenfold Investments prefers to invest in growth stage companies that build long-term customer relationships with multiple sales and service opportunities.

Opportunity to Simplify Capital Structure. Tenfold Investments has the unique ability and experience to invest new capital into mid-stage companies and purchase full/partial equity positions from existing investors and founders. This often re-energizes the management team to execute on a sensible growth plan.

Involvement. Tenfold Investments is a hands-on investor who works alongside of its portfolio companies to provide the support and resources needed to transform emerging companies into successful globally competitive enterprises.

Size of investment. Our initial investment is usually between $250,000 and $ 2.5 million into companies with revenues in the $2 million to $20 million range and adjusted EBITDA of $500,000 to $5 million. We also make seed investments of less than $250,000 to support a promising project until the company is ready for a full round of financing.

Geography. Tenfold Investments is not focused on a specific geography. While located in Canada we will make selected investments in the US and Europe.