Harbright's Investment Approach

We follow a fundamentals-based approach to screening potential investments.
Harbright follows a simple, straightforward thought process that guides our investment decision making. We focus on value creation and businesses fundamentals. Some of the questions we routinely ask in the due diligence process include:
  • Does your product or service save customers, time, money or other resources?
  • What is the customer currently experiencing that your product or service resolves?
  • Does your product or service create new revenue opportunities for your customers?
  • How effective is your solution?
  • For consumer products, does your product or service create a user experience that doesn’t currently exist or that’s better than competitors?
  • What other benefits do you create for your customers?
  • What specific aspects of your product or service create value?
  • Define the market segments & buyer characteristics for your products
  • What are customers willing to pay for your product?
  • Describe your traction in the market
  • Are your products or services currently selling? If so, where?
  • If your products or services aren’t yet for sale, what technical or other milestones must be reached to make your product available?
  • Define your distribution strategy
  • How much will the channel strategy cost?
  • Please provide a proforma.
  • Please define how your business costs scale.
  • Are revenue streams seasonal/cyclical?
  • What unique experiences, skills, or connections do they have that help you succeed?
  • Describe your company culture.
  • Who are the potential competitors?
  • Are there alternative solutions to the problem you’re solving?
  • Define the barriers to entry.
  • If IP is trade secret, how do you protect it?
  • If IP is patented, are they approved, pending, etc?  Has a right to practice analysis been completed?
  • What value will the spend bring to the company?
  • What is your current and projected burn rate?
  • How much capital are you seeking?
  • At what valuation?
  • Who are the current investors?
  • What multiples of sales or profit are evidenced in recent transactions for similar companies?
  • What is your plan to create an exit for investors?