Quality Management
- Management teams must be entrepreneurial and
experienced in growing companies in their business
area. The founding teams will often need to be
augmented as the companies develop, and we foresee
playing an important role in identifying and
attracting key additions to management. The
management team in most investments will have a
significant ownership stake in their company.
Market Opportunity
- We look for companies whose strategy will allow
them to enter a rapidly growing market and establish
a leadership position which can be defended. The
forces allowing a new entrant to a market will often
be the result of changes to the existing
distribution economics, the regulatory structure, or
a major change in technology. In each of these
cases, the existing market leaders are often
constrained in their reaction to the new market
landscape by their installed base and by the
momentum of their current product offerings,
creating an opening for a new company which can
focus on the revised market dynamics without having
to support an existing business.
Competitive Position
- As well as having a potential to dominate a niche
market position, companies should have unique and
superior products and/or services that provide a
defensible and proprietary competitive position.
This position can be achieved through intellectual
property or other proprietary know-how, superior
product manufacturing or delivery systems, or any
other aspect which can create high barriers to
market entry by competitors.
International Potential
- Since market opportunities naturally exist on a
worldwide basis in the target industries, Tera will
particularly seek companies that have product
offerings that can be competitive and effectively
distributed in multinational markets. We have a
network of contacts which can be helpful to
portfolio companies pursuing multinational expansion
opportunities.