INVESTMENT CRITERIA

The four funds managed by Coleman Swenson are Franklin Capital Associates L.P. ("FCA"), Franklin Capital Associates II L.P. ("FCA II"), Franklin Capital Associates III L.P. ("FCA III") and Coleman Swenson Hoffman Booth IV L.P. ("CSHB IV"). The portfolios of FCA and FCA II were balanced between the product and service segments of the healthcare industry. FCA III invested primarily in privately held services, information systems, and telecommunication companies exclusively in the healthcare industry with CSHB IV serving as a later stage source of funding. Coleman Swenson usually serves as lead investor in the financing and is represented on the Board of Directors of a portfolio company. Typically, the investment range is $1-7 million. Over 60% of fund investments have been in seed and start-up companies, and Coleman Swenson often incubates outstanding management teams while developing business opportunities.

The following characteristics are basic criteria for reviewing a venture capital investment opportunity:

Healthcare or Life Sciences Related
The company must provide healthcare or life sciences related products, services, or information technologies.
 

Cost Effectiveness and Efficacy
The products or services should be capable of providing a major, favorable impact on the cost or efficacy of healthcare delivery. 

Market Need, Size, and Competition 
The company should fulfill a major need and serve a demonstrably large market.

Management
The existence of strong and experienced management with demonstrated leadership qualities is desired. 

Proprietary Position or Barriers to Entry
Significant barriers to competitive entry or a proprietary position in the market place is required.

Return on Investment 
The appropriate return on the investment should be consistent and realizable with the perceived risk.  Coleman Swenson is flexible relative to the investment instrument employed.  Investments are actively pursued in both small, high-risk enterprises and more mature, but growing, companies.


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