At the Gideon Hixon Fund we are looking for opportunities that solve a big and real
problem. We are generalists and will invest across most stages and across industries.
We will invest as little as $100K and usually invest anywhere from $500K to $1.5M
over the life of an investment. We prefer to invest in the United States and do
not invest in "sin" industries or products/services that we feel have negative social
ramifications. The Gideon Hixon Fund strives to be "a good partner" and we want
to be in opportunities where we are well aligned with the entrepreneur and other
investors, and where we can contribute to the company's mission.
Rather than focus on why your product or service is so great, we want to understand
why your offering is a great investment opportunity. We like passionate, committed
entrepreneurs who have "game changing" ideas and have a clear articulate vision
of how they will build a business from their ideas. In particular, we look carefully
at the evidence that you present from customers and industry experts that supports
and substantiates your product and revenue plan.
The Gideon Hixon Fund has its own way of looking at opportunities based on the following
formula:
We ask you to submit an executive summary that focuses on four important questions
(4Qs) and asks you to support your plan with evidence from three groups (the "triangle
of evidence"):
People who buy your product or service (customers)
People who make their living selling to those customers (distributors, sales organizations)
People who have experience in the "real world" of this industry (experts)
A list of the questions and suggested areas of focus are provided below.
Why is this a great opportunity?
What problem you are solving
How big is the problem
Is this market ready/willing to have this solved
How big is the opportunity if solved
What is your solution?
What does it do
How does it solve the problem
Evidence that it does solve the problem
How does it compare to current solutions
What advantages do you have over current solutions
Is it attractive and do you have a reasonable business model
Who is going to make this happen?
Team
Relevant Experience
Partners
Credible Board and Advisors
Visibility into key hires
How will this happen?
What are the key milestones
How are you creating value
Summary of execution plan and costs
Financial plan that ties to milestones and supports the amount of capital needed
Once we receive your executive summary, we will evaluate it and let you know whether
we would like additional information or a meeting. If we feel there is a good fit,
then we will undergo more extensive due diligence. We understand that time spent
on fundraising takes a company away from the core focus of its business, and we
strive to be as efficient as possible in our efforts to reach an investment decision.