investment criteria

What We Look For in Early Stage Investments:

Solid Traction

Companies with developed solutions and market validation. We typically enter at the early stage, when companies are primed for scale and ready to build their sales, marketing and brand to maximize growth.    

Scalable, Highly Efficient Business Models

Clear, multi-dimensional revenue streams creating paths to sustainable profitability within two to three years. Total capital investment over the life of the business should be less than $20 million.

Exceptional Teams With Clear Vision

Entrepreneurs with domain expertise and demonstrated execution capabilities. We are looking for people who are inspired, can concisely articulate their value proposition and have a passion for building great businesses.

Significant Regional Presence

We like to be close to the teams in which we invest. Businesses should have headquarters or significant operations in the Northeast. Close proximity is key to our approach.

Large, Addressable Market Opportunity

It’s not about the size of the total market, but rather, the size of the market that your product or service actually addresses. Plans should demonstrate  a realistic understanding of what the appropriate capture rate can be.

Sustainable Advantage

Significant leadership or time-to-market advantage through margin, distribution, value chain or standards advantages.

Synergies with Cava’s Engaged Investing Model

If you are just looking for capital, Cava is not the firm for you. We seek entrepreneurs who are excited to have a partner who cares and will strive to add constant value. We expect to be called upon to help and the CEOs of our portfolio companies will attest to our devotion and value add.

Pragmatic Valuations

True early stage valuations need to reflect a realistic sense of accomplishment and future potential. We all want your company’s valuation to grow over time. Unrealistic expectations are a quick path to frustration. 

Appropriate Capital Raise Targets

The amount of capital invested is based on various factors including stage, use of funds, KPIs and business model. While we target initial lead or co-lead investments of roughly $1 to $5 million, we will consider smaller investments. We reserve sufficient capital for follow-on rounds, should they be needed and assuming milestones have been met.

Share Your Opportunity

If you believe Cava is the right firm for you, submit your business summary for review here.

We recommend that your documents include an executive summary, financial projections and an update on current progress.