JEGI Capital  >  About JEGI Capital

Launched in February 2000, JEGI Capital invests in private companies with software, enabling technologies, infrastructure, and support services relevant to traditional media, marketing communications, and information businesses. Whether these technology-savvy companies help established media businesses operate more effectively, reach or communicate with customers, or create new distribution channels, they are fundamentally changing the way media companies are doing business.

JEGI Capital's investment professionals have extensive entrepreneurial, operational and investment experience of direct relevance to the fund's target companies. In addition, the fund's portfolio companies are able to benefit from JEGI Capital's established relationships with the most influential media businesses in the world. The fund's powerful network of investors includes a mix of some of the leading and most influential large global media and information companies and industry CEO's. Furthermore, through JEGI Capital's affiliation with The Jordan, Edmiston Group, Inc. (the leading investment bank to the media and information industries), the fund can provide high-level access to a client base of leading media companies.

Investment Philosophy

JEGI Capital is focused on investing exclusively in enabling technologies, infrastructure, and support services companies that advance the role of communications, both within and beyond the enterprise. Particular emphasis is placed on technologies with potential impact on the media and marketing communications industries. These technologies will help businesses operate more effectively, reach more customers, create closer links with existing customers and/or create new distribution channels. JEGI Capital firmly believes that competitive advantage will be achieved by those who embrace technologies that evolve the nature of business communications.

Furthermore, as a result of being an affiliate of The Jordan, Edmiston Group, the fund's leaders are in constant dialogue with established media companies, which enables them to understand the needs and priorities of their enterprise and e-business initiatives, as well as anticipate the software, infrastructure, enabling technologies, and/or support services that are most likely to be embraced. Additionally, the fund's leaders are able to recognize the technologies and new business models that are most likely to alter the competitive landscape in which these media companies will seek future opportunities.

Investment Size

JEGI Capital invests in companies at various stages, ranging from first institutional round, which follows the seed investment, to strategic rounds that precede initial public offerings. The fund's typical investment size is between $1 million and $3 million, allowing for follow-on investments for a total position of $5 million to $10 million per company over the total investment period, which is generally between three and five years.

JEGI Capital prefers companies in either the late product development or early product deployment stage, but will invest in more mature companies if there is a compelling strategic fit.

Investment Profile

JEGI Capital looks for the following key characteristics in potential investments:

• Experienced management teams
  Management is a critical factor in the success of early-stage companies, and JEGI Capital seeks to invest in companies with highly motivated, experienced management teams that are functionally well balanced and possess relevant industry and operating experience. It is important that the core team members have a clear, consistent vision of where the business is headed and have strong track records in their previous careers. Furthermore, management must convey a passion for the business and industry the company is targeting.

• Clear path to profitability
  JEGI Capital looks to invest in companies with business plans that clearly articulate the path to profitability. Metrics other than revenue and earnings are useful, but ultimately the value of a business is determined by its ability to generate earnings.

• Superior products or services
  JEGI Capital seeks to invest in companies that demonstrate a clear and compelling value proposition for the market. The fund looks for companies with products or services that are superior to existing solutions or are unique in that they currently do not exist in the company's target market. Most importantly, the product or service must clearly demonstrate a cost-savings or revenue-generating value proposition for customers.

• Target market
  JEGI Capital looks to invest in companies with target markets of $1 billion+ in size or with characteristics that enable a niche player to capture a significant market share.

• Competitive landscape
  JEGI Capital seeks to invest companies with technological or process elements that render a significant competitive advantage or provide a strong barrier to entry.

• Scalable business models
  Critical to the fund's investment criteria is a company's ability to grow. JEGI Capital looks to invest in companies where management can articulate a plan to build the structure and processes necessary to support rapid growth. Preference is also given to business models with multiple or recurring revenue streams.