Approach - Investment Criteria
Quality Investments in Technology

Stellar Directors consider numerous factors of importance in appraising an investment's potential for capital appreciation and corporate growth. Some of these include the following:

The Management Team

Because Stellar invests in people and focuses on developing strong interpersonal relationships as an investment partner, a management team with exceptional credentials, a predominant vision, and the motivation to succeed are critical components to building a successful deal. The company may also back startups or concepts with an incomplete team, with the intent to help build the team as demand dictates, with the objective to fill slots with individuals that have previous operating experience in the industry, are self-motivated, have a high degree of drive, and a long-term commitment to the business.

Market Opportunity

Large, stable or growing markets which will allow the business to expand to significant size in two to five years. Strength within an established or niche market, or an early, unique position in a rapidly growing market with large potential size that will enable the company to achieve sales.

Scalability

Technology, ideas, or concepts that have potential broad application or otherwise can be applied across numerous markets. In seeking scalability, Stellar looks at concepts or technologies which are capable of adapting to various marketplaces over long periods of time or being modified to meet new demand cycles.

Entry Barriers

Intellectual property, proprietary product, or other competitive advantages, which enable the business to achieve strength in position and potentially, above-average sales.

Financial Posture

Products or ideas that can yield cash flow in an acceptable and agreeable time period.

Deal Structure

A reasonable structure for the venture at the time of investment, which provides Stellar a controlling ownership percentage, but provides a substantial return-on-investment opportunity, control, and ownership for founders and entrepreneurs. This will vary commensurate with risk and cash needs for the respective deal.

In summary, Stellar invests in people and scalable technologies that present a compelling opportunity for the investors. Demonstrating a large market opportunity, superior competitive position, proprietary product or service, tangible customer benefits, and return on investment are the basic foundation to a deal. Above all, Stellar will look for a superior management team with the discipline, experience, drive, and vision necessary to build a company and that are willing to share in the growth experience with a well-seasoned investment partner.