Azure's Investment Methodology

We have a proven investment methodology that incorporates primary research and analysis to help identify companies and detailed and efficient due diligence to analyze them. When evaluating investments, we focus on alignment of vision and incentives to create winning partnerships between entrepreneurs and investors.



Investment Identification - Primary Research
Independent of an investigation of any particular company, Azure's team conducts ongoing primary research projects into specific sub-sectors of importance in the information technology domain. These projects are specifically designed to help us create and update our investment roadmap, target specific new investment opportunities, and increase our domain knowledge. Our research also benefits our portfolio companies by helping them to identify the most promising market opportunities and partnerships for them to pursue. Our research process is iterative, because we regularly share our interim findings with trusted industry participants and solicit their feedback. Therefore, we are continuously presenting and being challenged on both our data and our conclusions. Some of the many areas in which Azure has done research projects include enterprise security software, communications line card technologies, open source software, cell phone components, storage management software, analytic application software, IP video distribution, and consumer software.

Investment Analysis - Due Diligence
When screening new investments, Azure's due diligence process is detailed yet efficient. Through our diligence process, we evaluate a company's team, technology, market and business model. Each investment must pass through successively more difficult screening phases, and we often introduce relevant members of the Azure Network to help in this process. Even before our capital is invested, many of our companies find that Azure has added value through partner introductions, business model refinements or financial analyses that begin during due diligence. Our complete due diligence process enables Azure and our entrepreneurs to identify, understand and manage the inherent risks in each company.

Investment Execution - Foundation for a Winning Partnership
We believe that successful venture-backed companies are built upon trusted relationships among venture capitalists and entrepreneurs. In completing an investment, we spend time to understand board and management dynamics and to ensure that Azure and our entrepreneurs have a shared vision for the direction of the company. When considering terms on which to invest, we pay special attention to the alignment of incentives among management teams, employees and investors.