Experienced Team with Strong Investment Acumen

Our team combines a breadth of experiences and wide range of skills, including operating roles at large and startup technology and healthcare companies, early-stage equity investing and technology investment banking. This mix of experiences and skills enables us to take a thoughtful and balanced approach to making investment decisions and to provide our companies with valuable support over time.
 
We initiate a relationship with a startup as early as possible, ideally at or shortly after the time when a company is raising its first round of venture financing. We examine each investment opportunity on a variety of factors and make our decisions in a timely manner. We assist our portfolio companies throughout their various phases of growth by providing operational assistance, advice on corporate strategy and input on financial matters. In addition, we leverage our extensive networks and relationships to provide introductions to executive staff candidates, beta customers, strategic partners and future investors. Our focus is to provide value well beyond our capital.
 
We take a long-term perspective and disciplined mindset into working with each of our portfolio companies, which provides for creating strong and trusting relationships. Additionally, we work closely with a few venture equity investors and have formed strong relationships through co-investments with such firms as Benchmark, Greylock, Kleiner Perkins, Redpoint, Sequoia, Three Arch Partners and others. Our venture equity approach aligns us with our companies’ and our co-investors’ goals, making us valuable long-term partners.

Broad Range of Financing Alternatives

Our strategy is to provide maximum flexibility to our portfolio companies by offering creative financing structures. We provide the appropriate capital structure for a company whether that involves equity, debt or a combination thereof. Importantly, we have the capability and expertise to lead and set terms in equity rounds. In addition, we reserve additional capital at the outset to make future debt and equity investments. By utilizing our various investment products, entrepreneurs and investors can optimize their financing strategy and maximize capital efficiency.

Value of Venture Debt

Our venture debt products are targeted at enhancing the returns of management teams and equity investors while providing maximum flexibility to our portfolio companies. Our loans are covenant free and provide true cash runway and flexibility at a fraction of the dilution of direct equity. With the additional cash runway provided by our capital, a startup gains the valuable additional time necessary to achieve key milestones before raising its next equity round. Achievement of these additional milestones results in a higher valuation and a more successful next round of financing, thereby lowering ownership dilution for the team and equity investors. In certain instances, our capital can also provide the resources for a startup to become cash flow positive as well.

Value of Venture Equity

With the capability to lead a company’s equity round or make a minority investment in that round, Pinnacle is a financial partner that can offer its portfolio companies a complete range of financing alternatives. We get to know our portfolio companies and build a level of trust with the teams and a level of understanding of their businesses that enable us to provide value beyond capital. Further, we move very quickly offering minimum disruption to the team, and we provide flexible and straightforward term sheets. In cases where we’ve made a previous venture debt investment, investing equity into a portfolio company aligns our interests even more directly with those of the team and existing equity investors. In total, our venture equity expertise, operational experience and extensive network enable us to provide significant value to our portfolio companies.