Stages:

• Early

 

Industries:

Communications & Networking

Information Technology

Software & Internet

 

Description:

IMS Ventures was originally founded in 1995 to assist forward looking companies in solving complex internet technology problems. The firm fills a void in the venture capital environment by taking an active role in its portfolio companies. IMS Ventures assists early-stage entrepreneurs in validating their product and business concepts and preparing them for future growth and expansion. The firm invests $250,000 to $500,000 (more in subsequent rounds), in return for 5% to 20% equity (in the form of preferred stock) in portfolio companies that have: at least two full-time executives who have put some of their own money into the company; a product or service which can be demonstrated (alpha or beta) and marketed in six to twelve months; and a business model that can reasonably demonstrate profitability in two to four years. IMS Ventures invests in no more than eight companies each year. IMS will invest in many different industry segments, but prefers businesses that have a tangible product or service that can differentiate them and provide ongoing competitive advantage. The firm generally does not invest in Internet content companies.