We provide capital and operational expertise to help today’s innovators become tomorrow’s market leaders.   Learn More ›

How We Invest

The .406 team talks with an entrepreneur

Investment process

Proactive research

We spend a great deal of time thinking about market discontinuities that can be exploited by new technologies and companies. We are always actively looking for companies with a particular focus.

Opportunity identification

We review lots of opportunities every year looking for the most compelling entrepreneurs tackling problems in the biggest markets. We typically have several meetings to understand a concept.

We identify and target emerging technology and services that solve big problems, disrupt large markets or enable rapidly growing spaces.

Validation

Once we decide that an idea is within our sweet spot, we focus our full effort to understand as much as we can. We talk to prospective customers and competitors, possible partners and potential advisors to assess whether the opportunity is right for us.

Feedback

During our diligence process, we spend a great deal of time with the entrepreneur providing feedback on everything we’ve learned. Potential customers’ names and other useful information are passed on to the entrepreneur regardless of whether we decide to invest.

Decision

We select opportunities that resonate strongly with us and where we can add disproportionate value. Our initial investments are typically between $1 and $4 million per company with substantial additional capital reserved for follow-on investment.

Our logo

While our name represents our approach, our logo depicts our investment strategy.

The dots illustrate Ted Williams’ strike zone with the bright points highlighting the zone of greatest potential success.

We embrace the same philosophy — acknowledging our strengths and knowing where we have the best chance to hit it out of the park.


The .406 logo -  Ted Williams’ strike zone