INVESTMENT CRITERIA

Blue Water Capital has $98.5 million under management. The investment criteria for the majority of Blue Water funds is shown below.

Investment Criteria/Company Characteristics

• Industries: Although not limited to a particular industry or segment thereof, the Fund generally will concentrate its investments in information technology companies emphasizing enabling software, e-commerce, telecommunications, multimedia. content, services and integration technologies
• Management Team: Experienced, highly capable management or entrepreneurial team with the ability to attract and retain quality people
• Strategy: Demonstrated strategy to establish the company with a strong and sustainable competitive advantage (resulting from an articulate company vision, unique products, services and/or technology such as patent rights, brand recognition, established distribution channels, etc.)
• Exit Strategy: Clear and well defined
• Geographic Prefernce: Nationwide in the United States and Canada, but with a concentration on the Mid-Atlantic area of the United States
• Annual Revenue for the Fiscal Year Prior to Investment: $2 - $50 million
• Annual Net Income for the Fiscal Year Prior to Investment: Profitable or near profitable
• Investment Stage: Expansion stage
• Capital to Be Invested: $1 million - $3.3 million
• Transaction Value: Typically, $3 million - $20 million
• Investment Type: Typically, the first outside financing in the company as part of a Series A Preferred Stock round. The Fund is typically a minority equity shareholder
• Board Seats: Typically, the Fund will have one or two seats on its portfolio companies' Boards of Directors

PLEASE NOTE THAT NOTHING IN THIS WEBSITE SHOULD BE CONSTRUED AS AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO PURCHASE AN INTEREST IN ANY PRIVATE INVESTMENT FUND MANAGED BY BLUE WATER CAPITAL. ANY SUCH OFFER OR SOLICITATION CAN BE MADE ONLY THROUGH THE DELIVERY OF A PRIVATE PLACEMENT MEMORANDUM.