Investment Strategy
NewSpring Ventures invests in strong growing companies -- firms with proven management teams, significant growth potential, a clear value proposition, and a strategic competitive advantage. These companies typically are located in the Mid-Atlantic region and seek capital to grow operations, expand through acquisitions, recapitalize their firms, or complete a venture buyout.
Industry Focus
NewSpring Ventures invests in a broad range of growth and expansion-stage businesses, emphasizing companies in these industries and sectors:
Business Services – Companies providing functions or services on an outsourced basis. Examples include: Accounting & Financial Consultancy; Benefits Administration; Back Office Services; Manpower & Staffing; Training & Educational Services; and Computer Services.
Enabling Technologies – Companies developing new technologies to facilitate and improve existing systems, such as opto-electronics, nanotechnologies, and specialty manufacturing. These technologies often enhance a mature product, spur revenue growth, or boost market scale of a service or system.
Information technology – Companies developing proprietary application software, whether sold as an enterprise application or on a hosted service basis. Examples include: Telecommunications Products & Services; Supply Chain & Logistics; E-Commerce Facilitators (such as security); Financial Transactions, Money Transfer & Processing; and System Integrators.
Geographic Preference
NewSpring invests primarily in the Mid-Atlantic region of the United States, which reaches from Massachusetts to North Carolina, with a concentration on New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington, DC and Virginia. In general, the NewSpring team favors companies close to home, believing that close proximity helps build strong working relationships. Shorter distances allow for an increased level of face-to-face interaction, which translates into team cohesiveness and an enhanced ability to monitor and provide value to our portfolio companies.
The Mid-Atlantic region is rich with diversity, providing strong investment opportunities in such industries as software/IT, healthcare, networking equipment, business services, and manufacturing. One of the region’s key strengths is that 20% of the U.S. population lives within a three-hour drive of Philadelphia.
Philadelphia and its surrounding region is: ranked 3rd for private sector expenditures in university science and engineering research and development; ranked 2nd for patent production; ranked 4th for the total number of information technology scientists and engineers; and ranked 4th for the total number of biotechnology workers.