faq | MHS Capital

What do we look for?

Solving an Interesting Problem Have you identified a new problem that has resulted from an emerging technology or market trend? Or, are you solving a problem in what some consider to be an "unsexy" market?
Strong Product Team Does your team have the industry knowledge and technical prowess to build a great product?
Large Market Potential Are you innovating in or creating a billion dollar industry?
Disruptive and Defensible Advantage Do you have a technology, business model or distribution advantage?
Capital Efficiency Are you building a company that can reach profitability with a limited amount of capital?
High Value Customers Do your customers move quickly? Do they have a burning desire to use your product in ways you never thought possible? Are they loyal? Are they willing to pay a premium?

What is our investment criteria?

Industry Focus We don't have any hard and fast rules. We could say we only invest in consumer web, enterprise, healthcare, education, mobile, or ecommerce, but in reality, we think there are big problems to be solved in every industry. We simply want to work with the best and brightest.
Stage We invest in early stage startups, bridging the gap between angel and venture sized rounds. We think that it's the stage where the time, energy, and experience of our team and investor base is most valuable to entrepreneurs.
Geography We've found that great entrepreneurs are disrupting markets all over the world. To date, we've invested all across the US and have even made investments in Europe and South America.
Amount Our typical initial investment is between $1,000,000 and $3,000,000; we do reserve capital for follow-on capacity.
New Investments We make 2-5 new investments each year.

Why work with us?

Experience Matters Our investment team has been involved in building companies valued at over $14 billion, and our investor base includes both founders who have built companies worth over $17 billion and operators of some of the most successful software and internet companies of the last decade. We want you to benefit from our collective experience.
Extensive Resource Network We've invested over 15 years in building a network of resources for you to leverage as you build your company. We will connect you with the right people at the right time to accelerate your business, whether it be knowledgeable advisors, potential business partners, sources of follow-on financing, or potential new hires.
Alignment of Interest We make big bets on a select few entrepreneurs which means we are heavily invested in the success of each and every one. You can rest assured that we will take your call at 10pm on a Friday night to help you work through decisions that will have a meaningful impact on your business.
Partner for the Long Term We get involved early, and we stay involved as the company matures, even after additional financing rounds.

Why we do what we do?

It's Personal Many of the entrepreneurs with whom we have partnered over the years have become close friends, colleagues, and mentors, so for us, this is more than just business. We have been fortunate to back some entrepreneurs multiple times to multiple successful exits. What can we say, it is always great to work with friends.
Passion for Disruptive Ideas There is nothing more exciting than seeing an entrepreneur's eyes light up as they share why their idea has the potential to change the status quo.
To See YOU Succeed Your success is our success. The most gratifying part of working with early stage companies is seeing the team succeed in making their dream a reality. We consider ourselves fortunate that great entrepreneurs believe we bring enough value to the table to have us along for the ride.
Re-Investment in the Ecosystem Our investor base has chosen to use our fund as a platform for re-investing in the startup ecosystem. They have partnered with us to invest their knowledge, experience and hard earned capital in visionary entrepreneurs building the next generation of market-leading companies.