Formed in 1995, Blue Rock Capital is a venture capital fund focused on investing in early-stage private companies with high growth potential in the Mid-Atlantic region.  With approximately $50 million of assets under management, Blue Rock is particularly interested in backing strong management teams in high growth markets.  Investments are selected for their ability to create value for management and investors over a three to five year time horizon. 

GEOGRAPHIC PREFERENCE

Blue Rock invests in companies in the Mid-Atlantic region from New England to the Carolinas.  The Fund’s focused geography supports a close working relationship with its portfolio companies.  In special circumstances, the Fund may invest outside its target geography.  Blue Rock has offices in Delaware and New Jersey. 

PHILOSOPHY

Our philosophy is based on creating a value-added network of support for early-stage companies.  The ability to do this comes from the Fund's investor base as well as our experience and network of contacts.  As a minority owner in companies, Blue Rock seeks to be a supportive, outside partner.  Blue Rock leaves the operations of the business with the management team and takes an active role in helping its portfolio companies as a Board member, counselor and confidant.  Management’s investment (both cash and sweat equity) are important factors in our investment decision. 

STAGE OF DEVELOPMENT

Blue Rock has a balanced portfolio focused on early-stage companies as well as appropriate seed-stage and mid-stage companies.  Seed-stage companies have a promising technology or business opportunity, and a not-yet complete management team, and have little or no revenue.  Early-stage companies have demonstrated proof of concept, have the core management in place and usually have limited revenue.  Generally, mid-stage companies have meaningful customers, a complete management team and $2-$3 million of revenue. 

INDUSTRIES

Blue Rock’s investments are focused on information technology and service businesses.  Information technology is broadly defined to be software, the Internet, telecommunications and semiconductors.  The Fund does not invest in pharmaceuticals, medical devices, real estate, consumer products and certain other sectors. 

CO-INVESTORS

Blue Rock co-invests with the top venture funds in the country in order to bring additional value to its portfolio companies.  Representative co-investors include Oak Venture Partners, Mid-Atlantic Venture Funds, Sprout Group, Accel Investment Partners, Advent International, JP Morgan, JW Childs and Softbank Ventures.  In some cases, Blue Rock leads investment syndicates and in other cases, Blue Rock participates in a financing led by another investor. 

FUNDING

Depending on the needs of the companies, Blue Rock itself initially invests between $250,000 and $2 million.  Over time, the Fund anticipates having between 25 and 30 companies in its portfolio.