406 Ventures-LLC

406 Ventures, LLC is a venture capital firm specializing in early stage and de novo investments in emerging market segments. The firm prefers to invest in enterprise IT companies, with a focus on information technology security and infrastructure, web infrastructure, technology-enabled business services, applied big data, cloud, mobile software, and next generation software companies. Within information technology security and infrastructure technology, it invests in end-point and application security and RFID. In technology-enabled business services, the firm focuses on service companies that use proprietary content, data analysis, and technology tools for the healthcare and education markets or sectors such as customer relations, litigation support, investment research, supply chain and operational data collection technologies including customer relations, and legal and financial services. Within next generation software, it invests in emerging and compelling business models for delivering scalable and cost effective software solutions, including open source and ˜software as a service companies. The firm makes investments between $500,000 and $3 million initially, with total between $6 million and $10 million per company. It seeks board representation in its portfolio companies. The firm acquires both minority and control stakes in its portfolio companies ranging between 20 percent and 80 percent and prefers to be the lead, first institutional investor. It seeks to reserve a portion of capital for opportunistic investments in more mature companies in industries where the firm has prior experience and where technology and business model shifts create opportunities for rapid growth. .406 Ventures, LLC was founded in 2005 and is based in Boston, Massachusetts.