Silicon Bay Partners, a holding company established to acquire and develop new leading edge technologies as well as promising early growth stage companies within the Software, Internet, and Real Estate sectors, announced today that it will launch a $20 million fund to invest specifically in disregarded or overlooked technologies.
According to Randy Hucks, the firm’s founder and managing partner, there are many promising early and growth stage companies which are undervalued or willing to be acquired at lower valuations because they have been unable to secure the funding and resources they need to develop their products and services.
This has created an environment where many young companies are more amenable to being purchased on extremely conservative valuations and/or for stock as long as they will likely receive what they need to further develop their products and services, he said.
Instead of spending millions on R&D, the firm’s leadership believes it is a better business strategy to take advantage of the disregarded technologies resulting from the millions already spent.
The firm has already received dozens of funding requests. While all interested parties must have a viable plan to make a profit, special consideration will be given to those businesses focused on achieving social and environmental positive results.
The Silicon Bay Partners management team will also accept proposals from firms which have either failed to launch or ceased operations due to lack of funding or other issues.
The firm is currently interviewing fund managers and expects to announce other key appointments in early 2016.
A spokesman for Silicon Bay Partners said earlier this year that the firm will relocate its Florida operations, including various portfolio firms, to Sacramento, California prior to the start of the new year.
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