Description
Lateral Capital is a Micro Venture Capital Limited Partnership located in Sarasota, Florida, that has invested in more than 100 early-stage companies across 23 states since 2003. The firm invests in early-stage companies led by what it calls "paranoid optimists of impeccable character," seeking businesses with a completed product or service and compelling benefits, proprietary technology with issued or filed patents, logical strategic buyers who would want to acquire the company within 5-7 years, business models leading to cash flow breakeven, and a contribution to the greater good. Lateral Capital has invested across a wide range of categories from health care to industrial products, specialty B2B software, and biotech, but does not invest in distribution-driven categories like food and beverage, location-dependent businesses like restaurants, or general startups. Most investments are made in conjunction with angel groups across the U.S., including Band of Angels, Seraph Group, Golden Seeds, Gopher Angels, Tamiami Angels, Central Texas Angels, and Tech Coast Angels, as well as companies presenting at BIO, SXSW, and Angel Capital Association events. The firm is run by John Lilly, a long-time Procter & Gamble executive and former Pillsbury Company CEO, and is now investing its Sixth Fund, supported by a group of accredited investors including CEOs, CFOs, and investment bankers targeting gross returns around 2.5X MOIC with roughly a 20% rate of return. Lateral Capital also operates the Lateral Capital Opportunity Fund, open to accredited investors.