What We Are Looking For

Pentech are mandated to invest in best of breed software companies in the UK and Eire.

We invest in entrepreneurs who combine vision and creativity in identifying large, unmet market opportunities. We also look for individuals with an infectious passion for their ideas and the determination and commitment required to transform them into successful software product businesses. While we recognize that there is no single determinant of success, our investment assessment typically focuses on three core areas - the size of the market, the capabilities of the management team, and the differentiation of the company's products and ideas. 

Large, Addressable Market

First, we need to understand the particular market for which the company's product meets a well-recognized need. Then we judge the reasonableness of the forecast by calculating the market penetration needed to achieve plan. We work to have a clear understanding of the appropriate route to the customer and the challenges that exist with respect to the chosen distribution method. 

Superior Team

A successful company is built by a strong and cohesive team with the leadership skills to inspire greatness, the vision to define the operating strategy, and the ability to recognize not only the business's strengths, but its weaknesses as well. We respect managers that seek to acquire best practices from market leaders - willing to listen and learning from other people's mistakes rather than their own. We recognize that strong teams aren't built overnight, and are always excited to work with individuals intent on surrounding themselves with excellence.

Differentiated and Sustainable Competitive Advantage

The establishment of a differentiated business proposition is essential to long-term success The management team should have a firm understanding of the company's unique capabilities, and the barriers to entry that will prevent others from encroaching on the market. The business model should reflect a thorough understanding of the changing economics of the technology industry and present an innovative way of leveraging its uniqueness. Of course, all of these perspectives are meaningless without a clear understanding of the competitive marketplace, and the strengths and weaknesses of each potential competitor.

In addition to these quantifiable elements, we also make decisions based upon our belief that the relationship between the entrepreneur and the venture capital firm should be one of mutual respect and understanding, one of true teamwork - this is a long, often hard journey and you need to be able to have confidence in yourself and those around you.