Investment Stragegy
Pittsburgh Equity Partners (PEP) has developed a unique, focused and disciplined strategy for selecting early stage technology companies for investment. This strategy is based on more than 40 years of combined investing experience of the two principals, Edward Engler and Stephen G. Robinson. Ed and Steve understand how to mitigate the risk associated with early‐stage angel investing while still preserving the upside potential. Our strategy enables us to avoid the mistakes typically made by most angel investors.
PEP’s rigorous investment strategy channels our investments into a narrow focus of companies that:
This approach mitigates the substantial risks associated with research and development and those associated with dramatic dilution as the company grows. Typically, one of the largest remaining risks is one of execution where PEP’s capital and talent can add the most value.
Although we also concentrate on the many other necessary characteristics for success such as diversification, management team quality, market size and intellectual property, our unique combination of focus areas is the key differentiator between PEP and other similar funds.
PEP’s rigorous investment strategy channels our investments into a narrow focus of companies that:
- have a fully developed product where the technology risk has been conquered (we do not fund basic research and development)
- will use our funds to take the product to market, to ramp up sales and marketing
- have some sales revenue
- have customers who can verify whether the product/service cost- effectively solves their problem
- are capital efficient and will not need more than $10M over their entire funding life cycle prior to an exit
This approach mitigates the substantial risks associated with research and development and those associated with dramatic dilution as the company grows. Typically, one of the largest remaining risks is one of execution where PEP’s capital and talent can add the most value.
Although we also concentrate on the many other necessary characteristics for success such as diversification, management team quality, market size and intellectual property, our unique combination of focus areas is the key differentiator between PEP and other similar funds.
